#6 - Starbucks (NASDAQ:SBUX)
Starbucks (SBUX) Having a Starbucks (NASDAQ:SBUX) on nearly every corner hasn’t been much of an advantage during our period of national mitigation. Although the company’s dining rooms and select stores are closed during the pandemic, the company still is considered an “essential” business and is doing decent business with drive-through, delivery, and curbside pickup.
However, the company will certainly be reporting drastically lower sales in the quarter. But if there’s any business that should see a “V-shaped” recovery, it will be Starbucks. Unless millions of Americans have miraculously broken their caffeine addiction while sheltering in place, demand will return and it will return with strength.
SBUX stock has been a victim of the broad selloff and with a price of around $70 per share, shares seem ridiculously inexpensive. It’s not hard to see revenue and earnings zooming up once Americans feel that it’s safe to go out. And when that happens, the stock should begin to move closer to its 52-week high near $99. That’s nearly 40% higher than its current level.
Buy Starbucks at the current price, enjoy the ride up and collect a nice dividend which the company has increased in each of the last nine years.
About Starbucks
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.
Read More - Current Price
- $87.97
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 8 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $103.77 (18.0% Upside)
