Starbucks (SBUX)

Re: Starbucks (SBUX)

Postby winston » Thu Nov 24, 2016 9:47 am

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Starbucks Corporation: There’s No Stopping SBUX Stock

SBUX stock is not unreasonably priced for a growth stock

By Lawrence Meyers

SBUX stock trades at 30x earnings, though. Now, analysts project annualized earnings growth of 16.85% over the next five years. Add in the dividend and you get to an 18x valuation.

I add 10% for its cash flow and another 10% for its brand name, which would take us to a 21.6x multiple.

Normally, I shy away from stocks with a PEG ratio greater than 1.0. The exception is for true growth stocks that show 5-year annualized growth greater than 15%, which SBUX stock does.

Thus, is paying about a PEG ratio of 1.45 unreasonable? I don’t think so, in this quick and dirty analysis, but only if you hold for the long term.


Source: Investor Place

http://investorplace.com/2016/11/theres ... DZGLfl96M8
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Re: Starbucks (SBUX)

Postby winston » Fri Jan 27, 2017 2:33 pm

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Starbucks curbs 2017 revenue forecast after U.S. store visits drop

By Lisa Baertlein

The disappointing Americas results were primarily due to operational challenges, caused by congestion at drink pickup sites, after the number of cafes reaping more than 20 percent of transactions from mobile order and pay doubled to 1,200, during the fiscal first quarter, which ended Jan. 1.


Sales at Americas region cafes open at least 13 months were up 3 percent for the first quarter, missing analysts' average estimate of a 3.9 percent


U.S. same-store sales were also up 3 percent, driven exclusively by higher spending, while the actual number of transactions was down.


The Seattle company forecast 2017 revenue growth of 8 to 10 percent, down from prior call for a double-digit rise.


Source: Reuters

http://finance.yahoo.com/news/starbucks ... 42129.html
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Re: Starbucks (SBUX)

Postby winston » Mon Jan 30, 2017 9:33 am

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Starbucks Corporation (SBUX)

Last but not least, Starbucks ended the week on a sour note, and once again an earnings report was to blame.

For its fiscal first quarter, the coffee house chain earned 52 cents per share, in line with estimates, but sales of $5.73 billion missed estimates $5.85 billion.

Same-store sales growth of only 3% versus estimates of 3.8%.

The company attempted to turn lemons into lemonade, saying its app-based ordering led to congestion at the counter. That, however, led to some patrons walking out without making a purchase.

Not everyone is convinced even that’s the source of slowing growth though. Buckingham Research Group analysts opined, “Our view is that traffic across the industry was terrible, and Starbucks was simply not immune.

In addition, the divergence in traffic and ticket leads us to speculate whether the price-value offer is getting lost in the quest for ever-increasing premiumization.”

SBUX closed 4.0% lower for the day.

Source: Investor Place
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Re: Starbucks (SBUX)

Postby winston » Tue Mar 14, 2017 10:30 pm

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This Stock Could Soon Hit Record Levels

By Michael Vodicka

Starbucks is priced for growth. Its forward P/E ratio of 26 is a 37% premium to the S&P 500′s 19.

Its expansion strategy in China needs to deliver to justify that valuation.


Source: Street Authority

http://dailytradealert.com/2017/03/14/t ... rd-levels/
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Re: Starbucks (SBUX)

Postby winston » Wed May 17, 2017 12:09 pm

Best Growth Stocks for Retirement: Starbucks (SBUX)

I don’t buy coffee from Starbucks Corporation (NASDAQ:SBUX) as often as I used to. My Nespresso machine at home makes better coffee at a fraction of the price, and I don’t have to wait in line or use snooty words like “venti” to describe my order.

Still, I do duck into a Starbucks from time to time to get a little work done when I’m travelling on business, and it seems that it never gets easier to find a table.

Starbucks has been a mainstay of American culture for over two decades now. It’s as busy and bustling as ever. SBUX has done a remarkable job of keeping its menu interesting and continually inventing new coffee concoctions.

At some point, Starbucks will run out of places to expand. But I don’t know that that will happen on the investment timeline of anyone reading this article. It seems that buying overpriced coffee in a paper cup is a rite of passage into the global middle class, and there are still multiple billions of lower-income consumers yet to join their ranks.

Starbucks’ revenues barely dipped during the 2008 meltdown and Great Recession and are hitting new highs with every passing year. And to top it off, Starbucks is more profitable than at any point in its history based on its return on equity.

A lot can happen over the span of one’s retirement. But I think it’s safe to say that SBUX is a stock that will outlive us all.

Source: Investor Place
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Re: Starbucks (SBUX)

Postby winston » Wed May 17, 2017 12:09 pm

Best Growth Stocks for Retirement: Starbucks (SBUX)

I don’t buy coffee from Starbucks Corporation (NASDAQ:SBUX) as often as I used to. My Nespresso machine at home makes better coffee at a fraction of the price, and I don’t have to wait in line or use snooty words like “venti” to describe my order.

Still, I do duck into a Starbucks from time to time to get a little work done when I’m travelling on business, and it seems that it never gets easier to find a table.

Starbucks has been a mainstay of American culture for over two decades now. It’s as busy and bustling as ever. SBUX has done a remarkable job of keeping its menu interesting and continually inventing new coffee concoctions.

At some point, Starbucks will run out of places to expand. But I don’t know that that will happen on the investment timeline of anyone reading this article. It seems that buying overpriced coffee in a paper cup is a rite of passage into the global middle class, and there are still multiple billions of lower-income consumers yet to join their ranks.

Starbucks’ revenues barely dipped during the 2008 meltdown and Great Recession and are hitting new highs with every passing year. And to top it off, Starbucks is more profitable than at any point in its history based on its return on equity.

A lot can happen over the span of one’s retirement. But I think it’s safe to say that SBUX is a stock that will outlive us all.

Source: Investor Place
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Re: Starbucks (SBUX)

Postby winston » Sun Aug 06, 2017 7:54 pm

Undervalued Dividend Growth Stock of the Week

by Jason Fieber

The stock is available for a P/E ratio of 28.22.


Source: Mr. Free at 33

http://dailytradealert.com/2017/08/06/u ... -week-147/
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Re: Starbucks (SBUX)

Postby winston » Fri Sep 22, 2017 11:49 am

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Dividend Growth Stock of the Month for September 2017

by David Van Knapp

Here are Starbucks’ positives:

• Good dividend resume: Increases each year since initiating dividend, moderate payout ratios, ~15% average annual increase, and strong dividend safety protected by solid cash flow.

• Good business model and execution, with wide moat and high quality rankings.

• Good financials. Not reliant on high debt, although use of debt has been growing. Consistent cash flow generator.

• Low beta (price volatility) and strong analyst support.

• Stock is fairly valued, and could be called undervalued for such a fast-growth company.


And here is the only real negatives:

• Yield is low at 1.8%, offset by high annual growth.

• Dividend growth streak of 7 years is not very long and has not been tested by a recession.


Source: Daily Trade Alert

http://dailytradealert.com/2017/09/21/d ... mber-2017/
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Re: Starbucks (SBUX)

Postby winston » Fri Oct 13, 2017 9:34 pm

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This World Class Stock is Selling for a No-Brainer Price Right Now

by Jimmy Butts

In its most recent quarter, the three months ended July 2, sales grew 8.1% to over $5.6 billion, compared with the same period a year ago, and comparable store sales grew 4%.

Gross margins sit around 60%, meaning that for every $4 latte the company sells, it rakes in a gross profit of $2.40.


In 2007, Starbucks had 4,327 locations outside of the United States. Today, the company has increased its international locations to 11,913.

This still pales in comparison to McDonald’s 22,700 international stores, but that just goes to show how much room for growth there still is in the international space.


Source: Street Authority

http://dailytradealert.com/2017/10/13/w ... right-now/
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Re: Starbucks (SBUX)

Postby winston » Wed Dec 27, 2017 2:34 pm

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Starbucks (SBUX)

by Michael Farr

Starbucks is the premier roaster, marketer and retailer of specialty coffees in the world, with over 27,339 stores in 75 countries.

Following several years of very strong earnings growth, the stock has been flat over the past 2+ years due mostly to a deceleration in same-store sales growth to the low-single digits from the mid- to high-single digits it had been reporting for years.

Management has attributed the deceleration to both a difficult consumer/retail backdrop as well strong customer acceptance of the company's new mobile order & pay solution, which has caused a bottleneck in filling customer orders in a timely fashion.

We think this is a high-class problem, and that this temporary setback creates an opportunity for growth-oriented investors willing to be patient.

The company's recently revised long-term growth algorithm calls for 12 percent+ annual earnings per share growth driven by high single-digit revenue growth, 3-5 percent global same-store sales growth, and annual returns on invested capital of at least 25 percent.

We also anticipate that the company can continue growing its global store base by 7 percent-8 percent annually, driven by outsized growth from relatively under penetrated China.

Recent sizeable investments in new platforms, products, people and technologies should help enable success in hitting these targets.

The stock trades at a 24 times the consensus for calendar year 2018 earnings per share, which is a discount to similar companies. The dividend is 2.1 percent.

Source: CNBC
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