|Day's Range||0.2700 - 0.2700|
Serving great coffee in an inviting atmosphere has been a winning formula, and unusual buy signals could keep the stock jolting higher.
You can have your latte and a prosperous retirement, too. Many mainstream financial experts have used coffee as a prime example of wasting money, saying your morning coffee ritual from Starbucks (SBUX) or a local cafe are killing your chances of properly retiring. “I wouldn’t buy a cup of coffee anywhere, ever — and I can afford it — because I would not insult myself by wasting money that way,” she told CNBC.
The major competitor to Starbucks in China, Luckin Coffee, has been moving up and up, but one analyst doesn’t think Starbucks shareholders have much to worry about from the rise of the Chinese coffee chain that went public in the U.S. in May.
Starbucks Corp. announced that its coffee is being brewed at the new New York City Park Avenue Amazon Go store, as well as at the 300 Boren Avenue North Seattle location. The Park Avenue location is the second New York City Go store; the first opened in May. Starbucks stock has rallied about 29% for the year to date while the S&P 500 index is up 15.3% for the period.
This 18-month old, homegrown brand, which is on track to open more stores in China than Starbucks, believes it can beat the Seattle-based coffee pioneer through the simple — if costly — strategy of persuading customers to drink coffee by paying them to do so. Most urban Chinese are not drinking much more coffee than they were two years ago, an FT Confidential Research survey shows, with only those living in first-tier cities — China’s richest consumers — increasing their intake markedly. Just 29 per cent of respondents from third-tier cities said they drank coffee once a week, down from 31 per cent two years ago (we did not survey in rural areas, where the frequency would be much lower).
Grubhub (GRUB) stock jumped over 3% in the opening hours of trading Monday following an announcement that it will partner with Dunkin' Brands (DNKN).
A good rule of thumb in the stock market is to not buy stocks just because they are cheap or low. Cheap stocks, or stocks that trade at discounted valuation multiples, are often cheap for a reason. The same is true for low-price stocks, or stocks that trade in the under-$10 and under-$20 ranges.As such, when dealing with super cheap stocks or super low-price stocks, investors should exercise caution. These stocks are at these levels for a reason, and it's not usually a good reason.Having said that, this group of beaten up stocks does offer significant upside potential. These stocks are priced for death. Thus, if anything good happens, these stocks will rise by a lot, and quickly. But you need something good to happen first, and something good only materializes for a handful of these sub-$10 and sub-$20 stocks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Rated Biotech Stocks to Invest In Today With that in mind, I've put together a list of high quality stocks in the under $20 bucket which are supported by healthy fundamentals, and have a realistic opportunity to rally in a big way from their current prices. Which stocks made the list? Let's take a deeper look. Luckin Cofffe (LK)Source: Shutterstock Stock Price: $18The first stock on this list is freshly public Luckin Coffee (NYSE:LK), the hyper-growth China retail coffee chain which many dub the Starbucks (NASDAQ:SBUX) of China.The core growth narrative here is very favorable. Luckin is the fastest growing and second largest retail coffee operator in China, and is on track to soon become the largest player in the space. At the same time, the China economy is rapidly urbanizing and expanding, and the coffee market in that economy is surging higher, rising by over 30% last year. That makes Luckin the hyper-growth leader in a rapidly expanding market, a combination which ultimately implies tremendous long-term growth potential.The numbers underlying LK stock are equally favorable. Luckin Coffee has a market cap of about $4 billion. Starbucks has a $100 billion market cap. To be sure, Luckin Coffee will never be as big as Starbucks. But, if the company does become a leader in what projects to be a $25 billion-plus China retail coffee market, then today's $4 billion market cap looks like a steal.Starbucks has about 40% market share in the U.S. Luckin can maybe do 20% share in China. A 20% share in a $25 billion market implies $5 billion revenue potential. On 10% operating margins and after a 20% tax rate, that equates to $400 million in net profits. A market average 16 multiple on that implies a potential future valuation target of over $6 billion. That's way bigger than $4 billion. Aurora Cannabis (ACB)Source: Aurora Cannabis Stock Price: $7.50In the under $10 category, one of the more attractive stocks to buy is undervalued Canadian cannabis producer Aurora (NYSE:ACB).No matter which way you slice it, Aurora is one of the more undervalued pot stocks in the market. It's cheaper than most peers on a trailing sales basis, forward sales basis, volume basis, and on pretty much every other important operating metric. That relative cheapness in ACB stock comes despite Aurora having many strengths. Aurora is the second largest player in the Canadian cannabis market behind Canopy Growth (NYSE:CGC), is one of the fastest growers in the market, is behind some of the top selling products across Canada and has one of the largest production capacities.Why, then, is ACB stock cheap relative to peers? Balance sheet. Cronos (NASDAQ:CRON) and Canopy are loaded up with billion dollar investments from consumer staples giants, which simultaneously shore up their balance sheets and give those companies ample firepower to grow rapidly. * The 7 Best Tech Stocks to Buy for the Second Half of 2019 Aurora has no such investment. But if the stock stays this cheap for long, it's only a matter of time before they get a big investment. Also, the company is tapping into the debt markets to raise sufficient capital to compete, meaning that in the big picture, this valuation disconnect has no reason to exist. If it gets wiped out -- as it should -- ACB stock could fly higher. Vipshop (VIPS)Source: Shutterstock Stock Price: $7.75Another hidden gem in the under $10 category is Chinese e-retailer Vipshop (NASDAQ:VIPS).Although China's economy is slowing, it is still growing at a robust mid single digit rate. At the same time, the digital economy remains red hot, with e-retail sales projected to rise 30% this year. Vipshop is at the heart of this robust e-retail sales growth narrative. Further, Vipshop is a discount retailer, and if the U.S. retail landscape has shown us anything, it is that off-price retail is a winning strategy. See the stocks of Ross Stores (NASDAQ:ROST), TJX (NYSE:TJX), Walmart (NYSE:WMT) and Five Below (NASDAQ:FIVE), versus the stocks of Nordstorm (NYSE:JWN) and Macy's (NYSE:M).Thus, Vipshop finds itself at the convergence of two favorable trends. On one end, you have robust growth through expansion of China's e-commerce landscape. On the other end, you have sustained popularity through an off-price retailing strategy.Net net, that means Vipshop projects as a sustained big grower for the foreseeable future. That sustained big growth should shoot VIPS stock materially higher from today's sub-$10 price. American Eagle Outfitters (AEO)Source: Mike Mozart via Flickr (Modified)Stock Price: $17A bunch of mall retailers trade in the under $20 range. But, only one retail stock is really worth buying at these levels and that stock is American Eagle Outfitters (NYSE:AEO).Put simply, American Eagle is a winning retailer. They are succeeding where others are not. American Eagle has transformed into the king of the denim category, and denim has made a strong comeback over the past several years. At the same time, American Eagle's Aerie brand has been one of the hottest stories in retail because the brand has aligned itself with body positivity tailwinds. Because of these favorable dynamics, American Eagle demand has remained resilient in the face of broader mall retail demand turbulence, which has allowed American Eagle to report far better than peer numbers over the past several quarters.The numbers speak for themselves here. American Eagle has rattled off 17 consecutive quarters of comparable sales growth, and 6 consecutive quarters of 5%plus comparable sales growth, including a 6% comp last quarter. In the overlapping period, peer mall retailers Nordstorm, J.C. Penney (NYSE:JCP), Gap (NYSE:GPS), Express (NYSE:EXPR) and many others pretty much all reported negative comps. The norm was also big gross margin compression. American Eagle's gross margins only fell back 30 basis points. * 5 Red-Hot IPO Stocks to Buy for the Long Run Broadly, American Eagle Outfitters is significantly outperforming its retail peers. This is nothing new. This has been the trend for a long time. It also projects to remain the trend for the foreseeable future. Consequently, if you're gonna buy a mall retail stock in the under $20 category, AEO should be your first choice. Ford (F)Source: Jens Mayer via Flickr (Modified)Stock Price: $10The last stock on this list is another stock in the sub-$10 category which has compelling upside in a medium to long term window.We all know Ford (NYSE:F), the U.S. automotive giant that makes great pick-up trucks and a variety of other good cars. Naturally, that sounds like a stable business, since auto demand is fairly stable, and Ford has been a relevant player in that space for what seems like forever. But the narrative supporting Ford stock has weakened over the past several years, mostly because the auto space is shrinking thanks to ride-sharing, and because Ford is losing share thanks to the emergence of electric vehicles.These headwinds are very real. But they are also overstated. Sure, some urban residents will chose to forego car ownership as a result of increased ride-sharing prevalence. But most won't, because no matter how good ride-sharing gets, it won't ever parallel the convenience of car ownership. Further, electric vehicles are ramping. But, Ford isn't just sitting on its hands while consumption pivots. They are pivoting into the EV space, too, and the company should be able to command respectable EV share at scale.Overall, then, the fears dominating the Ford narrative at present are overstated. Ultimately, they will pass, and when they do, Ford stock will rally from today's depressed levels.As of this writing, Luke Lango was long LK, ACB, CGC, TJX, WMT, FIVE, and JWN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post 5 Stocks to Buy for $20 or Less appeared first on InvestorPlace.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Starbucks Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
The Federal Reserve is widely expected to strike a dovish chord when it meets this week, clearing the way for a July rate cut — the first in more than a decade — that almost 40% of economists in a WSJ poll are expecting. While a hawkish Fed no longer looms over this aging bull market, Nouriel Roubini, now says the world “has an even bigger problem on its hands.”
I was reluctant to support a corporate chain. But in my neighborhood, it’s one of the only places I could have formed a relationship with someone like Sammy.
Fast-casual is a subset of the restaurant industry that sits somewhere between fast-food and fine dining, and the concept has caught on with the American public.
Blockchain technology is nothing if not utilitarian, with it essentially tackling the two cardinal problems prevalent within supply chains – the lack of visibility and transparency among stakeholders. For centuries, coffee has been one of those commodities that has truly been traded across continents, as coffee plantations invariably were situated around the equatorial belt while the beverage has been enjoyed ubiquitously around the world. Fascinatingly enough, blockchain's possibilities in the coffee value chain transcend the usual trope of visibility and trustability.
Zacks.com featured highlights include: Starbucks, T. Rowe Price, Laboratory Corporation, Carlisle and FleetCor
At the Tryer Center, the coffee giant is fostering innovative ideas that can rapidly percolate through the company.
Grace Kelly — the 16-year-old from Auckland, not the late Philadelphia actress who became Princess of Monaco — is the star of the new music video that features her paean to the place she once lived and still loves.
To receive further updates on this Starbucks (NASDAQ:SBUX) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of Strategic Trader today.This morning, we're recommending a bullish trade on Starbucks (NASDAQ:SBUX).The S&P 500 has failed to continue moving higher this week, but it also hasn't lost any ground. The level at around 2,885, which served as resistance when the index was forming the right shoulder of the "head-and-shoulders" bearish reversal pattern in mid-May, is still holding as support. This is a promising sign.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTraders don't want to start selling and destroying value in the stock market. However, they are still a bit too nervous to try and send the S&P 500 up to new highs.Of course, that doesn't mean individual components of the S&P 500 can't move up to new highs. SBUX is doing just that, and a put write is a good way to play the situation. Lower Coffee Prices and Rising SalesSBUX is benefiting from both falling coffee prices and rising sales. Arabica coffee futures have dropped more than 13% during the past year. At the same time, SBUX continues to draw more business loyalty from the coveted millennial and Gen Z demographics.Most analysts also believe SBUX will continue growing in China, even with increasing competition from companies like Luckin Coffee (NASDAQ:LK).Plus, SBUX is starting to attract the attention of more hedge funds. This could unlock an entirely new source of buying demand.With all these fundamental advantages, SBUX continues to be a good target for bullish plays. In 2019, we have bought back all nine of the puts we sold on SBUX for a profit. We want to sell another for even more income. Leaving Some Room to the DownsideIf we turn to the daily chart below, we see SBUX jumped to a new intraday high yesterday after consolidating for the first two days of this week. Traders continue to flock to it for its consistently strong performance.Daily Chart of Starbucks (SBUX) -- Chart Source: TradingViewWe've chosen the $79 strike price for our put write because we believe the former resistance level will hold up as a solid support level moving forward. We expect SBUX to continue fluctuating and consolidating during the next few weeks, so we want to give the trade a little room to the downside to maneuver.To find out which SBUX puts we're selling -- and to get access to our full portfolio of income-generating trades -- consider signing up for risk-free trial subscription to Strategic Trader today. InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of Strategic Trader.Follow our Facebook page to receive each Trade of the Day direct to your News Feed -- and join the conversation.Compare Brokers The post Starbucks is Perking up Once More appeared first on InvestorPlace.
For the next four quarters, analysts forecast Starbucks (SBUX) to post adjusted EPS of $2.89, which represents a rise of 14.6% from $2.52 in the corresponding four quarters of the previous year.