Starbucks is a roaster, marketer and retailer of coffee. Co.'s segments are: North America, which is inclusive of the U.S. and Canada; International, which is inclusive of China, Japan, Asia Pacific, Europe, Middle East, Africa, Latin America and Caribbean; and Channel Development. Co.'s North America and International segments include both company-operated and licensed stores. Co.'s Channel Development segment includes roasted whole bean and ground coffees, Seattle's Best Coffee®, Starbucks- and Teavana-branded products, ready-to-drink beverages such as Frappuccino® and Starbucks Doubleshot®, and foodservice products sold worldwide outside of its company-operated and licensed stores.
When researching a stock like Starbucks, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from SBUX Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for SBUX stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the SBUX 200 day moving average ("SBUX 200 DMA"), while one of the most popular "shorter look-backs" is the SBUX 50 day moving average ("SBUX 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Starbucks. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the SBUX 200 DMA and the SBUX 50 DMA, we get a moving average convergence divergence indicator ("SBUX MACD"). The SBUX MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis