SBUX Should I Buy
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Starbucks Corp (SBUX) is not a strong buy at the moment for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. While the company has a solid long-term growth plan and positive catalysts, the recent financial performance, cautious insider and Congress trading trends, and mixed analyst sentiment suggest a hold position until clearer signs of sustained growth and margin recovery emerge.
The technical indicators are mixed. The MACD is positive but contracting, RSI is neutral at 50.8, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot point of 95.992, with resistance at 100.034 and support at 91.95. Overall, the trend is stable but lacks strong upward momentum.
The company's 'Back to Starbucks' plan shows early success with a 4% YoY increase in global comparable store sales.
Analysts have raised price targets, with some firms like Barclays and BMO Capital expressing confidence in long-term growth potential.
Bullish moving averages indicate technical support for the stock.
Congress members have made 4 sale transactions in the last 90 days, indicating cautious sentiment.
Financial performance in Q1 2026 shows a significant drop in net income (-62.44% YoY) and EPS (-62.32% YoY), with gross margin also declining by -15.48%.
Analysts like Citi and UBS remain neutral, citing valuation concerns and the need for clearer visibility into sustained sales recovery and margin expansion.
In Q1 2026, Starbucks reported a 5.50% YoY increase in revenue to $9.92 billion. However, net income dropped by -62.44% YoY to $293.3 million, and EPS fell by -62.32% YoY to $0.26. Gross margin also declined to 17.03%, down -15.48% YoY. These figures indicate challenges in profitability despite revenue growth.
Analyst sentiment is mixed. While firms like Barclays, BMO Capital, and Deutsche Bank have raised price targets and expressed optimism about long-term growth, others like Citi and UBS remain neutral, citing valuation concerns and the need for sustained recovery in sales and margins. Price targets range from $89 to $120, reflecting diverse opinions on the stock's potential.
