Starbucks Has Growth Potential with Strong Upside

StarbucksInternational coffee shop company Starbucks Corp. (NASDAQ: SBUX) is a strong consumer pick for the first quarter of 2020. Operating internationally, Starbucks is a retailer of specialty coffee and food items through its stores in North and South America, China and the Asia Pacific, Europe, the Middle East, Oceania, and Africa. The company has more than 24,000 stores that are company-operated or licensed globally.

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Starbucks will release holiday quarter earnings data later today, with an expectation for 4.4% same-store sales growth across all of its markets. Stock is up in the premarket today, despite investor fears related to Coronavirus outbreak. This is a good sign for anyone considering purchasing shares this week.

In all of the last five fiscal years, Starbucks has generated sales revenue and gross income growth. In its 2019 fiscal year, sales grew 7.21% while gross income was up 2.02%. The company operates with a strong gross profit margin of 21.62%.

There’s an implied upside with an analyst target price of $96.60, and this company also offers a dividend with a yield of 1.85% at today’s price. Stock is relatively affordable and a strong pick for 2020.

Key Data:

  • 1 Year Price Growth: 35%
  • YTD Price Growth: 92%
  • 3 Month Price Growth: 47%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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