#6 - Starbucks (NASDAQ:SBUX)
On the consumer discretionary front, you can get amped up on Starbucks (NASDAQ:SBUX). Unlike Disney, Starbucks is almost back to pre-pandemic revenue and earnings. Part of that is due to the lessons the company has learned from China.
In response to the threat posed by Luckin Coffee (OTCMKTS:LKNCY), that is, before that company melted down due to fraud allegations, Starbucks has rethought its digital strategy. Now Starbucks Rewards customers can pre-order and pay on the company’s app. Their order is ready when they arrive. This grab-and-go strategy should not only add convenience (and revenue) but increase operating margins because the company will have increased efficiency.
And don’t ignore the fact that Starbucks not only continued to issue a dividend throughout the pandemic, but the company also managed to increase it. That’s no small accomplishment, and it’s a testament to the company’s balance sheet.
Like a few stocks on this list, Starbucks looks a little overvalued right now. There could be some volatility as we launch into 2021. However, recent analyst coverage suggests that SBUX stock has higher to climb.
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)
