#8 - Starbucks Corporation (NASDAQ:SBUX)
Starbucks Corporation (NASDAQ: SBUX) - If you’re sensing a counterintuitive theme going on, you’re right. Starbucks is another company that should enjoy a great holiday season. Its seasonal drinks are becoming synonymous with the Holidays and as every consumer knows there’s always a Starbucks near you at least in the U.S. and Canada. But that’s where the question has to be asked, where’s the growth going to come from? Certainly not from North America. The company has long made China the goal for its long-term growth. Starbucks is going to need new stores in China to fuel that growth. Those plans are on hold while China and the U.S go back on forth in an ongoing trade war. What is different about Starbucks as opposed to other companies on this list is their valuation seems to be right. Trading at just about 25 times earnings, it is just above S&P 500 average and its profit growth for 2018 will be in the high single digits. And while other stocks have taken a beating since October, SBUX has jumped 20%. This may give some investors a buy signal, but now may be the perfect time to kick back, buy a latte and sit out the season.
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)
2018 has been a rocky year for investors. While some stocks will certainly be closing out on a high note, there are some, most notably in the tech sector, that have warning flags waving for 2019. So while it's great to dream about sweet profits from a Santa Claus rally, the truth is that there are some stocks that are set up to deliver investors a post-holiday hangover.
It’s true some of these stocks are some of the darlings of the tech sector. They can’t go down, can they? They can. And with bear market winds starting to pick up strength, some of these companies have valuations that don’t look so jolly.
Now is the time to protect your portfolio by selling some of the stocks that have made gains for this year. Lock in those profits and have some cash on the sideline until the picture becomes clearer in 2019. And, if you want more help in staying on top of things as the busy holiday season approaches, be sure to look into MarketBeat All Access which gives you real-time analyst ratings, earnings, dividends, and a host of other investment research tools.
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