Starbucks Corporation (SBUX) is Resetting Earnings Under New Leadership

1 week ago 3

Soumya Eswaran

Tue, Apr 8, 2025, 8:01 AM 3 min read

ClearBridge Investments, an concern absorption company, released its “ClearBridge Large Cap Growth Strategy” archetypal 4th 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The bulk of maturation indexes entered correction territory during the quarter, owed to unit from the chaotic tariff implementation, concerns astir a weakening U.S. economy, and accrued inflation. Against this backdrop, the strategy outperformed the benchmark, driven by diversified banal enactment and an underweight vulnerability to the Magnificent Seven. The S&P 500 Index declined 4.27% successful the 4th and the benchmark Russell 1000 Growth Index (RLG) fell 9.97%. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its archetypal 4th 2025 capitalist letter, ClearBridge Large Cap Growth Strategy emphasized stocks specified arsenic Starbucks Corporation (NASDAQ:SBUX). Starbucks Corporation (NASDAQ:SBUX) is simply a planetary java marque that roasts, markets, and sells coffee. The one-month instrumentality of Starbucks Corporation (NASDAQ:SBUX) was -19.66%, and its shares mislaid 8.18% of their worth implicit the past 52 weeks. On April 7, 2025, Starbucks Corporation (NASDAQ:SBUX) banal closed astatine $80.00 per stock with a marketplace capitalization of $90.874 billion.

ClearBridge Large Cap Growth Strategy stated the pursuing regarding Starbucks Corporation (NASDAQ:SBUX) successful its Q1 2025 capitalist letter:

"Drilling further down, we person been engaging with absorption teams of portfolio companies with accumulation extracurricular the U.S. to recognize proviso alteration fungibility and the quality to walk done costs to extremity customers. We are specifically monitoring risks to the user assemblage from tariffs due to the fact that consumers person already borne the load of respective years of outgo ostentation pressuring wallets and immoderate areas of spending, similar eating extracurricular the home, person casual substitutes. That said, beverage holdings Starbucks Corporation (NASDAQ:SBUX) and Monster some held up good during the quarter. Starbucks is undergoing an net reset nether caller CEO Brian Nicoll that is being good received by investors. Monster, meanwhile, benefited from terms increases and spot successful its planetary business."

Analyst Says Starbucks (SBUX) Stock Could Be ‘Off To The Races’ Amid ‘Incredible Setup’

A barista pouring freshly brewed java from an espresso instrumentality to a cupful successful a bustling cafe.

Starbucks Corporation (NASDAQ:SBUX) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge money portfolios held Starbucks Corporation (NASDAQ:SBUX) astatine the extremity of the 4th fourth compared to 76 successful the 3rd quarter. While we admit the imaginable of Starbucks Corporation (NASDAQ:SBUX) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

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