Starbucks Corp SBUX is brewing excitement as a Golden Cross formation suggests a potential bullish run . The stock is up 6.84% over the past year, with a 3.
94% gain year-to-date. Jim Cramer recently put the spotlight on Starbucks, naming it one of his top “stimulus plays” in the wake of China’s renewed economic efforts, alongside heavyweights like Alibaba Group Holdings Ltd BABA BABAF and Apple Inc AAPL . In a Sept.
30 tweet, the “Mad Money” host said: Back in action after some nice time off and i see that the Chinese are, once again, stimulating and everyone's back...
Perfect...
.Sorry to be so cynical. But if you want stimulus plays: BABA, AAPL and SBUX will do Cramer's call comes at a pivotal moment for Starbucks.
The coffee giant faces headwinds in its second-largest market, China. Last quarter, Starbucks saw a 14% drop in same-store sales in China. The U.
S. market experienced a more modest 2% decline. Read Also: Is Starbucks Stock a Buy, Sell or Retain at 24.
79x P/E? Despite these challenges, the technicals suggest Starbucks stock is gearing up for a strong push forward. Chart created using Benzinga Pro The Golden Cross — a key technical indicator where the 50-day moving average crosses above the 200-day moving average— signals that bullish momentum is taking hold. With the current share price at $97.
36, Starbucks stock remains well above its 50-day SMA of $88.43 and 200-day SMA of $87.26, reinforcing the bullish signal.
Chart created using Benzinga Pro Addi.