SBUX - Starbucks Corporation
| Previous Close | 91.50 |
| Open | 91.41 |
| Bid | 90.01 x 3200 |
| Ask | 90.25 x 900 |
| Day's Range | 90.24 - 91.61 |
| 52 Week Range | 50.21 - 91.61 |
| Volume | 10,804,899 |
| Avg. Volume | 7,589,958 |
| Market Cap | 109.371B |
| Beta (3Y Monthly) | 0.52 |
| PE Ratio (TTM) | 39.01 |
| EPS (TTM) | 2.32 |
| Earnings Date | Jul 25, 2019 |
| Forward Dividend & Yield | 1.44 (1.57%) |
| Ex-Dividend Date | 2019-05-08 |
| 1y Target Est | 83.46 |
- Yahoo Finance Video•16 hours ago
Wall Street previews Starbucks earnings
Credit Suisse is looking ahead to Starbuck's upcoming earnings report. Yahoo Finance's 'The Final Round' discuss.
- Yahoo Finance Video•8 days ago
Starbucks stops selling newspapers
Starbucks announces they will no longer sell newspapers in their stores.
- InvestorPlace•20 hours ago
Chipotle Stock: Should Ackman Stay or Go?
Chipotle Mexican Grill (NYSE:CMG) reports its Q2 2019 earnings July 23 after the markets close. Regardless of what it says about the top- and bottom-line, I'm wondering if the company's second-largest shareholder is going to hang around to see where Chipotle stock goes next. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsBill Ackman's Pershing Capital Management owns 6.4% of CMG stock, or approximately 1.78 million shares. As I write this, CMG is trading around $764. That means Pershing's stake is worth $1.36 billion.Ackman purchased 2.88 million shares of Chipotle stock at an average price of $405. He has since sold off approximately 1 million shares, most of them sold last summer in the high $400s. Pershing has made approximately $85 million on the 1 million shares sold to date, and it's sitting on an unrealized paper profit of $639 million in less than a year. That's a cumulative return of approximately 62%. You can do the math. What's important is that Chipotle, and Ackman, are at a tipping point, of sorts. * 10 Tech Stocks That Are Still Worth Your Time (And Money) Is the next Chipotle earnings report the beginning of an even better story for the sometimes-maligned restaurant chain? Or, is this as good as it gets?The answer is in the hands of the gods. However, if you were Bill Ackman, would you let your profits ride, or would you take some or all of your position off the table?Here are my thoughts on both sides of the argument. He Should StayMake Chipotle Great Again. That seems to be the rallying cry of CEO Brian Niccol, who Ackman helped recruit from Taco Bell, in 2018. CNN Business named Niccol CEO of the Year in 2018 in large part because of the work Niccol and the rest of Chipotle's management team did to revitalize the brand. It seems that everything Chipotle did was on the table for discussion. Niccol planned to deliver a better experience for its customers by adding delivery, changing up the menu, reducing order wait times, and emphasizing all the quality ingredients it uses. Oh, and it also raised prices, something analysts were pushing.The results of these changes have delivered real growth in revenues, same-store sales, profits, and of course, a higher stock price. Since Niccol was announced as Chipotle's new CEO on February 13, 2018, CMG stock is up 145%, seriously outperforming its restaurant peers in the process. As Chipotle prepares to report Q2 earnings -- analysts expect revenues, same-store sales, and profits to jump 10.8%, 8.1%, and 28.9%, respectively -- it's important to remember that Chipotle had a blowout first quarter.With digital sales becoming a more prominent part of Chipotle's business, I would expect the second-quarter report to be a walk in the park. I'm not a technical analyst so I couldn't tell you whether the good news expected July 23 is already baked into its stock price. What I can say is that Chipotle's got its groove back, which is good news for Ackman and the rest of CMG's shareholders. He Should Sell Chipotle Stock"Don't look a gift horse in the mouth," goes the saying. Bill Ackman was the poster boy for poor-performing hedge fund managers until he focused on a few core holdings in 2019. Holdings like Starbucks (NASDAQ:SBUX) that have been able to avoid any food safety scare. That dramatically improved Pershing Square's performance. A 62% return in less than three years is nothing to sneeze at. There's no crime in taking some profits off the table redeploying that capital into a position that hasn't had nearly as good a run over the past 18 months. It's possible that Niccol's only scratched the surface of Chipotle's potential. It's equally likely that this is as good as it gets. Take the money and run, Bill. The Bottom LineIt's not easy rehabbing a fallen brand. The fact that Brian Niccol has been able to do so is a credit to his entire team. And you can't forget Executive Chairman Steve Ells, who stepped aside in late 2017, understanding that Chipotle needed a new person leading its turnaround. So, if I were Ackman, and I'm certainly not, knowing how hard it is for a restaurant brand to rebound from a food safety scare, I would think twice about exiting his Chipotle position because America loves a comeback story. Chipotle is one for the ages. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Chipotle Stock: Should Ackman Stay or Go? appeared first on InvestorPlace.
- Zacks•2 days ago
Coca-Cola (KO) to Report Q2 Earnings Tuesday: Should You Buy?
Coca-Cola Company (KO) stock was down 0.53% in trading Thursday. The stock currently sits less than a percent below its 52-week high.
- Zacks•2 days ago
Starbucks (SBUX) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
Starbucks (SBUX) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- Motley Fool•2 days ago
With Starbucks Now, the Coffee Chain Tests a Model for the App Era
Its new store format is an adaptation to the fact that mobile app customers, delivery people, and traditional walk-ins all have different needs.
- Zacks•3 days ago
Starbucks (SBUX) Gains As Market Dips: What You Should Know
Starbucks (SBUX) closed at $90.25 in the latest trading session, marking a +0.19% move from the prior day.
- Motley Fool•3 days ago
Starbucks Earnings: What to Watch
Can the coffee giant keep up strong comparable-store sales growth and maintain its momentum in China?
- Zacks•3 days ago
Solid Revenues & Margins to Aid Chipotle (CMG) in Q2 Earnings
Chipotle's (CMG) sales-building initiatives and greater digital innovation are likely to result in revenue growth in the second quarter of 2019.
- Zacks•4 days ago
4 Stocks That Can Fuel More Record Growth in the Second Half of 2019
Investors have been keeping their eyes locked on the relationship between the US and China as the rhetoric spewing from the conflict has impacted the stock market for the over a year now.
- American City Business Journals•4 days ago
JDA Software powers Walmart's new US employee scheduling system
While the Scottsdale software maker has worked with Walmart for many years, this is the first project the company could publicly announce with the largest retailer in the world.
- American City Business Journals•4 days ago
Crown Center adds two new food options
Two new tenants are heading to Crown Center, giving shoppers their barbecue and caffeine fix. Burnt End BBQ will occupy 6,200 square feet, and Starbucks will take over the remaining 2,200 square feet. "Our venture into Downtown is the perfect pairing of two true Kansas City traditions — barbecue and Crown Center," PB&J President Patrick Khoury said in a release.
- InvestorPlace•4 days ago
7 Best Stocks to Buy That Make a Student’s Life Easier
Google the words "back to school," and you get about 11.8 billion results. Going back to school is a ritual almost as old as man. Every year, come August, parents struggle to get their kids ready for the year ahead. Whether you're the most organized person in the world or the least, getting the kids prepped, no matter how old they are, isn't easy. However, if you're expecting an article about some of the ways to make your life easier, you've come to the wrong place. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis article is about the best stocks to buy to make the student's life easier. In some manner, all seven of these stocks participate in the daily lives of students. Some more than others, but they all have a role to play in a student's academic career. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Buy these seven and you might just pay for part of your child's education down the road. Best Stocks for Students: Starbucks (SBUX)Source: Shutterstock Ever since Starbucks (NASDAQ:SBUX) first introduced free WiFi in their cafes in 2011, you can go into a location at any time of day and see students typing away at their keyboards. If the location is near a university, you can expect it to be rammed with students. Even though there are frugal individuals who take advantage of the freebie by staying for hours on end, while buying nothing but the original coffee they purchased upon entering the store -- Starbucks wouldn't continue to provide free WiFi if it didn't get an absolute return from the cost of providing it. Sure, most Starbucks are staffed with friendly people, but the name of the game is profits; Starbucks likely takes the WiFi usage data in combination with its Starbucks Rewards data to deliver the ultimate profitability for shareholders and the company. It's hard to imagine what coffee shops would be like today if big chains like Starbucks didn't roll out free WiFi. Students might have to enjoy the coffee and talk to friends. Sysco (SYY)There are two things that students, especially those in college, do without fail: Get together with friends to chat about their life and eat. If they're like me, they eat a lot. That's where Sysco (NYSE:SYY) comes in. Sysco is the world's leading food service distributor delivering food products to facilities all over the world. Sysco generates approximately 8% of its revenue from education and government. While restaurants are by far the biggest revenue-generator accounting for 62% of sales, you can be sure that the exact number for education, if you include restaurants operating near or independent of schools, is much higher. Currently, Sysco is in the middle of several cost-saving initiatives intended to increase efficiencies while sending more to the bottom line. Included in the efforts is the company's rationalization of its Canadian operations to service its many regions more efficiently. It makes sense to me. American companies often don't get Canada right. In the third quarter ended March 30, Sysco increased revenues by 2.2% year over year to $14.7 billion generating operating income of $529.6 million, 9.8% higher than a year earlier, a sign its cost-saving initiatives are gaining traction. * 7 Dependable Dividend Stocks to Buy Yielding about 2%, as long as people keep eating, SYY stock will continue to provide good shareholder returns. American Campus Communities (ACC)Student housing is much like the food service industry. As long as kids are going to school away from home and need somewhere to live, companies like American Campus Communities (NYSE:ACC) will continue to make lots of money for shareholders. Up 18.5% year to date, ACC has had a spotty performance in recent years compared to the rest of its peers in the residential REIT industry.However, long-term, I believe that the changes happening in student housing will be very beneficial to American Campus Communities, which is the only pure-play publicly traded REIT that focuses on this area of real estate. Same-store rents continue to grow -- 58 consecutive quarters -- with an occupancy rate of 97.5%, well above the average for the entire U.S. market for apartment buildings. Focusing on universities where the housing stock is outdated, I expect ACC will continue to flourish in academia. Navient (NAVI)I must admit the subject of student loans is one that has me continually flipping from one side of the argument to the other. There is no question that post-secondary education is valuable, but I'm skeptical it's so valuable that you should go $100,000 into debt to get that education. That being said, if people are going to borrow to go to college, companies like Navient (NASDAQ:NAVI) have a right to make money off servicing these loans. What they don't have the right to do is harass borrowers. Ultimately, if Navient is abusing borrowers through the use of robocalls and other aggressive tactics to recover funds, the federal and state governments should take them to task over these moves. In defense of Navient, it uses telephone calls to connect with borrowers to arrange alternative repayment schedules, so these people don't default on their loans. * 10 Stocks to Sell for an Economic Slowdown I wouldn't recommend NAVI if you're looking for investments completely free of bad PR. However, it continues to grow its quarterly profits by double digits -- Q1 2019 EPS of $0.55, 38% higher than a year earlier -- making it an attractive investment for hedge funds and other institutional investors. Graham Holdings (GHC)It's been almost six years since the Washington Post and some of its other assets were sold to Jeff Bezos, the CEO of Amazon (NASDAQ:AMZN). At the time, the remaining assets were renamed Graham Holdings (NYSE:GHC). One of those remaining assets was Kaplan. Broken into four segments: Higher Education, Professional, Test Prep, and International, the company's educational segment generated 54% of its overall revenue in Q1 2019 and a significant amount of its operating income. Together with its television broadcasting assets, Graham Holdings goes as these two divisions go. Of Kaplan's four segments, its international unit is by far the most successful. In the first quarter, it earned $24.3 million from its operations on $185.8 million in revenue. The company's second most profitable segment is its professional unit with $11.3 million in operating profits from $41.2 million in revenue, an impressive operating margin of 27.4%, almost double its international business. There is no question, however, that the international business is where most of the assets in the business lie. In the first quarter, Kaplan International had $1.3 billion in identifiable assets. That's 25% of its overall assets. Kaplan could someday find itself trading as an independent, publicly-traded company. Selling at or near an all-time high, the spinoff could come sooner rather than later. Chegg (CHGG)Chegg (NYSE:CHGG) got its start in 2007 renting physical textbooks to college students across America. Now it's a complete direct-to-student learning platform of services to help students succeed leading up to, during, and after college. It began phasing out its physical rentals of textbooks in 2015. Today, Chegg is focusing on growing its digital subscription business, referred to as Chegg Services, which generated 77% of its Q1 2019 revenue of $97.4 million, up from 73% a year earlier. The legacy rental and sale of printed textbooks is referred to as Required Materials, and it accounted for the remaining 23% of its quarterly revenue. In Q1 2019, Chegg Services' revenues grew 34% year over year compared to 7% growth for Required Services. While Chegg doesn't break down how profitable each business is, I can guarantee the Chegg Services segment hands down has higher margins. In Q1 2019 in its entirety, Chegg lost $4.3 million, 65% higher than a year earlier. Don't let that scare you off. "Demand for this platform will only grow over time. Chegg is becoming a necessary learning companion for millions of high school and college students as they spend increasingly time in the digital space," wrote InvestorPlace's Luke Lango recently. Luke's on the money. * 7 Retail Stocks to Buy That Are Down in 2019 Chegg might not be profitable just yet, but it will be. Buy in now while its shares are still affordable. Square (SQ)Source: Shutterstock A recent story in The Philadelphia Enquirer highlighted the reason why Square (NYSE:SQ) is growing its Cash App by leaps and bounds after struggling to gain traction when it first launched the app in 2013. Of course, back in 2013, people weren't into fintech like they are now. The author asked a university business student to find out how millennial's pay each other and exchange money. "Young people use payment apps -- or applications on their smartphones -- to pay each other," wrote Erin Arvedlund. "The most popular apps are Venmo, owned by PayPal; Cash App, owned by Square; and payment apps linked to Snapchat or the smartphone itself, such as ApplePay and SamsungPay. The applications let you link your bank accounts -- a checking account or credit card -- to pay someone, and payments aren't always cheap."The date of this article was February 2018. That's right. Seventeen months ago. You can bet usage has increased since then. PayPal (NASDAQ:PYPL) owns Venmo. It's the leader in person-person payment apps with 40 million active users. Square, however, is coming on. It had 15 million active users at the end of 2018, double the number a year earlier. What's exciting about Cash App, is that the average user makes less than $50,000 a year, a demographic that is often under-banked or un-banked, putting Square in the perfect position to win over many of the estimated 50 million in the U.S. that don't have a bank account. Get students while they're young and move them into your business services once they graduate and want to start their own businesses. Of all the student-related stocks, Square probably has the most potential to be huge over the next 5-10 years. I like it a lot. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 7 Best Stocks to Buy That Make a Studentas Life Easier appeared first on InvestorPlace.
- TheStreet.com•4 days ago
Starbucks Looks Extended on the Upside - Lock in Some Gains
Prices are extended on the upside and stretched versus the popular moving averages. SBUX has not built a top pattern or distribution pattern so I do not anticipate a v-reversal or sudden collapse. The stock was mentioned last night on Mad Money as one company Jim Cramer would recommend if the economy slowed.
- Zacks•4 days ago
Factors Setting the Tone for Noodles & Co. (NDLS) Q2 Earnings
Noodles & Company's (NDLS) top line in second-quarter 2019 is likely to be driven by sales building initiatives like streamlining of menu and innovation and effective marketing strategy.
- Markit•4 days ago
See what the IHS Markit Score report has to say about Starbucks Corp.
Starbucks Corp NASDAQ/NGS:SBUXView full report here! Summary * Bearish sentiment is low * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is extremely low for SBUX with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting SBUX. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold SBUX had net inflows of $10.25 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
- InvestorPlace•5 days ago
7 Stocks Being Inflated by Low Rates
Arguably the single biggest theme and driver of the record 2019 stock market rally has been the plunge in interest rates. In short, as interest rates rose in late 2018, stocks fell off a cliff, and as interest rates have plunged in 2019, stocks have come roaring back.Why have interest rates and stocks been inversely correlated? In depth, it's a complicated conversation. But the high level ideas are easy to digest.There are two things at play here. One, bonds and stocks are competing investment vehicles. Money all around the world has to constantly decide whether to be invested in stocks, or bonds. When interest rates drop, bond yields drop and the return on bonds becomes less attractive relative to stocks. Thus, money rushes into stocks. Further, because bond yields are lower, that gives wiggle room for stock yields to go lower, too, so the multiple on stocks can and should move higher in a low rate environment.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTwo, the theoretical present value of a stock is the net present value of its future profits, discounted back by a certain discount rate. One of the principal components which influences that discount rate: the risk free investment rate (which is a byproduct of current interest rates). Thus, as interest rates drop, the risk free investment rate drops, the discount rate on future profits drops and the present value of equities rises.Consequently, it is reasonable to say that low rates today are inflating equity valuations everywhere.This is especially true for certain stocks which seem a too inflated by low rates. For these stocks, if/when rates rise, their present valuations could crumble, and the stocks could fall off a cliff. * 7 Dependable Dividend Stocks to Buy With that in mind, let's take a look at 7 stocks that seem overly inflated by low interest rates. Stocks Being Inflated By Low Rates: Proctor & Gamble (PG)Source: Mike Mozart via Flickr (Modified)YTD Gain: 24%Forward P/E Multiple: 24Long Term Projected EPS Growth Rate (sourced from YCharts, for all stocks): ~7%Consumer staples giant Proctor & Gamble (NYSE:PG) has rallied 24% year-to-date, generating 4 points of alpha on the S&P 500, mostly thanks to the plunge in interest rates. In short, PG is a defensive story with a big yield. Defensive stories tend to have low multiples, so when rates fall, these defensive stories can benefit from big multiple expansion. At the same time, big yield stocks become relatively more attractive in low rate environments, since healthy risk free yield is hard to find.But at current levels, PG stock has nearly the same forward earnings multiple as Facebook (NASDAQ:FB). Facebook is a 20%-plus revenue grower. Proctor & Gamble grew revenues by 1% last quarter (5% on an organic basis). Over the next several years, this company projects as a mid single digit profit grower. A 24 forward multiple is simply too steep for mid single digit profit growth, especially considering the entire consumer staples sector trades at less than 20-times forward earnings for a similar long term earnings growth rate.Net net, PG stock has been overly inflated by low rates, and if/when low rates do creep higher, PG stock could drop in a big way as the multiple compresses to more reasonable levels. Stocks Being Inflated By Low Rates: Match Group (MTCH)YTD Gain: 67%Forward P/E Multiple: 40Long Term Projected EPS Growth Rate: ~15%Shares of global internet dating behemoth Match (NASDAQ:MTCH) have rattled off a near 70% gain through the first six months of 2019, as low rates have supported multiple expansion on the stock while the company has continued to report strong subscriber growth numbers which underscore that online dating is a growing global phenomena. This is nothing new for MTCH stock. Over the past three years, the stock is up nearly 400%.The secular growth narrative here is healthy. Dating, like shopping and TV watching, is moving to the online channel. Match is the dominant player in this market, having bought up pretty much all the competition and controlling a suite of dating apps which together comprise the lion's share of the online dating market. This dynamic of leadership in a secular growth market implies that Match will continue to report robust subscriber, revenue, and profit growth for the foreseeable future.But robust here needs an asterisk. Subscriber, revenue, and profit growth growth were all in the low to mid teens range last quarter. Going forward, analysts project this as a mid teens profit grower. MTCH stock trades at 40-times forward earnings. That's a steep multiple for 15% profit growth. The info tech space broadly trades at half that multiple for roughly the same long term profit growth rate. * 5 EV Stocks to Buy for Big Gains Over the Next Decade Consequently, MTCH stock -- while supported by secular growth tailwinds -- seems to be overly inflated here by low rates. Stocks Being Inflated By Low Rates: Chipotle Mexican Grill (CMG)YTD Gain: 71%Forward P/E Multiple: 57Long Term Projected EPS Growth Rate: ~20%Year-to-date, Mexican fast casual eatery Chipotle Mexican Grill (NYSE:CMG) has been one of the S&P 500's top stocks, rising more than 70% through the first six months of 2019. The catalyst behind the rally has been acceleration of Chipotle's operational recovery. Expansion of the digital business, new menu additions and aggressive health-oriented marketing have driven Chipotle's recovery into the next-gear, with comps and margins flying higher. Investors keep buying into this recovery narrative, and Chipotle stock keeps moving higher.But the valuation on CMG stock now makes no sense, unless interest rates remain depressed forever. CMG stock trades at nearly 60-times forward earnings, roughly three times the projected long term EPS growth rate of 20%. Realistically, I actually think Chipotle can do better than 20% EPS growth, and think EPS can land around $40 by 2025 (nearly 25% annualized growth). But based on a restaurant average 27 forward multiple and 10% discount rate, $40 EPS by 2025 supports a 2019 price target for CMG stock of just $670.Chipotle stock trades hands today north of $700. Thus, this stock appears to be overly inflated by presently low interest rates. Stocks Being Inflated By Low Rates: Starbucks (SBUX)Source: Shutterstock YTD Gain: 38%Forward P/E Multiple: 32Long Term Projected EPS Growth Rate: ~15%Shares of coffee retail giant Starbucks (NASDAQ:SBUX) have rallied 38% in 2019, nearly double the return of the S&P 500, as investors have grown more optimistic regarding the company's long term growth trajectory in China and as operations domestically have shown signs of improving.But traffic trends in the U.S. are still negative, competition is still ramping, traffic trends everywhere else are slowing, overall comparable sales growth is slowing from its multi-year trend, margins aren't moving higher, and -- despite all that -- SBUX stock now trades at its biggest forward earnings multiple (32) since 2015, when the company's internal growth rates were much higher. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Indeed, 32-times forward earnings seems like a steep price to pay for low to mid single digit comparable sales growth, mid to high single digit revenue growth, flattish margins and mid teens profit growth. As such, it is reasonable to say that the current valuation underlying SBUX stock is sustainable if and only if interest rates remain low. As soon as they move higher, the multiple will compress and the stock will drop. Stocks Being Inflated By Low Rates: Under Armour (UAA)Source: Shutterstock YTD Gain: 49%Forward P/E Multiple: 77Long Term Projected EPS Growth Rate: ~30%Athletic apparel company Under Armour (NYSE:UAA) has been one of the market's hottest stocks in 2019, rising nearly 50% through the first six months of 2019 as athletic apparel demand trends have remained favorable, and Under Armour's growth and margin trends have improved against the backdrop of falling inventory (which is usually a solid leading indicator in the retail space).But UAA stock now trades at nearly 80-times forward earnings. Sales growth last quarter was 3%. The quarter before that it was 3%. Sure, margins are moving higher here, and top-line growth rates may improve as Under Armour pushes a more relevant product line-up over the next few quarters. Still, at best, this is a 20-30% profit grower over the next few years. Extrapolating that out, Under Armour will probably wind up with around $1.50 in EPS by fiscal 2025. Based on a long term average Nike-type forward multiple of 25 and a 10% discount rate, that equates to a 2019 price target for UAA stock of $23.Under Armour stock presently trades hands around $26. Thus, the current valuation seems overly inflated by low rates. Stocks Being Inflated By Low Rates: Costco (COST)Source: Shutterstock YTD Gain: 35%Forward P/E Multiple: 34Long Term Projected EPS Growth Rate: ~10%Shares of warehouse retailer Costco (NASDAQ:COST) have marched higher in 2019, to the tune of a 35% year-to-date gain, as the company has benefited from continued strong domestic consumer spending trends, especially in the discount segment, and as low rates have helped support multiple expansion in COST stock.At the present moment, both of those tailwinds will continue. Consumer economic fundamentals remain healthy, characterized by low unemployment, big wage gains, low consumer debt levels, and good credit. Meanwhile, rates project to remain low for the foreseeable future, as the Fed has embraced a rate cut mentality. The combination of those two dynamics should allow COST stock to keep moving higher. * 3 Breakout Stocks to Buy But it's also worth noting that the stock is trading at a decade high valuation despite the growth profile remaining largely unchanged. That dynamic is sustainable only if rates remain low. As soon as they start creeping higher, COST stock could feel some pressure. Stocks Being Inflated By Low Rates: Wingstop (WING)YTD Gain: 48%Forward P/E Multiple: 130Long Term Projected EPS Growth Rate: ~20%One of the hottest stocks in the market both this year and over the past several years has been chicken wing restaurant operator Wingstop (NYSE:WING). Year-to-date, WING stock is up nearly 50%. Over the past three years, the stock is up 270%. The big rally can be attributed to Wingstop's consistently positive comparable sales growth trajectory, which has coupled with huge unit growth rates and healthy margin expansion to produce second-to-none profit growth in the restaurant industry.But despite the company's strong growth track record, promising future growth potential, and tasty chicken wings, valuation is a serious issue for WING stock. The stock trades at 130-times forward earnings. That's is the most expensive multiple I have ever seen in the restaurant category. Further, Wingstop isn't growing that fast. Revenue rose 16% last quarter, and EBITDA rose 11%. Those are tiny growth rates next to a triple digit forward earnings multiple.As such, it is very reasonable to say that WING stock's present valuation is being overly inflated by low rates. Once rates start creeping up, WING stock will likely drop in a big way.As of this writing, Luke Lango was long FB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post 7 Stocks Being Inflated by Low Rates appeared first on InvestorPlace.
- TheStreet.com•4 days ago
Jim Cramer: Even if Slowdown Hits, You'll Look Good With These Six Stocks
What are some stocks that you can buy or at least get ready to buy, like PepsiCo , if you are of the opinion that the world really is slowing and the Fed can't change the equation? The first is Estee Lauder Companies . Here is a company that is run by one of the best executives I have ever met, Fabrizio Freda, late of Procter & Gamble , who has taken this prestigious brand and made it the most-loved makeup company around the world.
- Zacks•5 days ago
The Zacks Analyst Blog Highlights: Northrop Grumman, Thermo Fisher Scientific, Newmont Goldcorp, Starbucks and CME
The Zacks Analyst Blog Highlights: Northrop Grumman, Thermo Fisher Scientific, Newmont Goldcorp, Starbucks and CME
- Zacks•5 days ago
5 Restaurant Stocks Set to Deliver a Beat This Earnings Season
In an industry, which is increasingly reliant on digital services, five restaurant stocks stand to report better-than-expected earnings in the second quarter of 2019.
- Zacks•5 days ago
Starbucks Fortifies Global Presence With New Store in Beijing
Starbucks (SBUX) announces the opening of its first express retail location, Starbucks Now, in Beijing.
- Investopedia•6 days ago
What Is the Formula for Calculating Profit Margins?
Learn about gross, operating and net profit margins, how each is calculated and how they are used by businesses and investors to analyze profitability.
- GuruFocus.com•8 days ago
David Rolfe's 2nd Quarter Wedgewood Funds Letter: 'Punch Bowl'
'Is not the Fed now operating on the dual mandate of arsonist - and fireman?' -- Jim Grant, Grant’s Interest Rate Observer Continue reading...
- MarketWatch•8 days ago
Starbucks opens first express service store in Beijing
Starbucks Corp. said Friday that it has opened its first express retail location, Starbucks Now, in Beijing. The store, located in the city's financial district, offers limited seating along with mobile-order-and-pay and delivery service. The limited-seating format is one that Chinese competitor, Luckin Coffee Inc. , also offers at the majority of its stores. Starbucks stock has soared 78% over the past year while the S&P 500 index has gained 7.4%. Luckin Coffee, which went public in May, is up 6.4% over the last month.
- Zacks•8 days ago
Dow Breaks Through 27,000 to a New Record High
Dow Breaks Through 27,000 to a New Record High
