Free Trial

8 Growth Stocks to Sell Now - 5 of 8

 
 

#5 - Starbucks Corporation (NASDAQ:SBUX)

Starbucks Corporation (NASDAQ: SBUX) It seems almost like a heresy to be including Starbucks on this list. This is a brand that is opening up a new store every 15 hours and has a customer base that is passionately loyal to the brand. Furthermore, while virtually every other stock was losing value in October, Starbucks actually went up in value, and the company reported strong earnings and revenue numbers in their latest earnings report. The long-term question for Starbucks is in China. If you believe the company, they will say there's no problem in China and that they are patiently playing a long game. However, with the ongoing trade war showing no imminent signs of ending, and the brand has reached a saturation level of new stores in the United States, Starbucks is counting on China for its growth. Currently, Starbucks has 3,400 out of their 28,200 stores in China with plans to nearly grow that number to 6,000 by the year 2,022. However, Starbucks will have to succeed where even tech giants Amazon and Alphabet have met resistance. If China decides to limit Starbucks' access to their market, particularly in favor of homegrown brands, the company will face significant challenges to achieve its projected 14.6% annual growth. The stock currently trades at a P/E ratio of over 21, which is down from over 24 as the stock has pulled back a little.

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)

 

Rare "crisis signal" triggers for third time in U.S. market (Ad)

A rare pattern has just repeated for the third time in U.S. history. The last two times this happened, the market crashed 78% (the dot-com bust) and 89% (the Great Depression). Today, according to one of America's leading experts (who has predicted nearly every financial crisis of the last 25 years), what's coming next could soon crash the market by 50% or more, and keep it down for 10, 20, or even 30 years.

Click here for all the details.