Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 27, 2019

Article Excerpt

STARBUCKS CORP., $88.37, Nasdaq symbol SBUX, is a leading seller and roaster of specialty coffee. It operates over 30,600 outlets in roughly 80 countries. The company has won its appeal of a 2015 EU ruling that it repay 25.7 million euros ($28.3 million) in tax subsidies paid to it by the Netherlands government. To put that amount in context, Starbucks earned $1.37 billion, or $1.12 a share, in the quarter ended June 30, 2019. The stock has gained 55.0% since we first recommended it at $57 in our June 2018 issue. It now trades at 28.5 times the $3.10 a share that the company will probably earn in the fiscal year ending September 30, 2020. That’s a high p/e, but still acceptable considering the company’s strong growth prospects, particularly in Asia. The $1.44 dividend yields 1.6%. OUR RECOMMENDATION: Starbucks is still a buy for long-term gains. Starbucks recent coverage: Hotline for September 6, 2019 July 2019 issue CONAGRA BRANDS INC., $30.28, New York symbol CAG,…