The Fifteen Most Overvalued Stocks: Starbucks (SBUX)
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Price: $94.86 +1.29%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.3%
EPS Growth %: +36.5%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.3%
EPS Growth %: +36.5%
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CONTRIBUTOR Douglas A. McIntyre http://www.247wallst.com
Starbucks (Nasdaq: SBUX) growth continues to defy the laws of gravity. Revenue in its last reported quarter grew 21% as its total number of stores rose to over 12,000.
But, consumer spending and it huge footprint could be the company's worst enemies. It has not gone through a recession with anywhere near the number of retail outlets it has now.
Other companies have also watched Starbucks and learned a lesson. McDonalds is now rolling out premium coffee. Success breds imitation.
According to Yahoo! Finance, Starbucks has a P/E of over 50. That does not leave much room if the company see slowing in same store sales, even for a month or two.
Investors have already show their concern about Starbucks last quarter by selling off the stock. It is a great company.
With no margin for error.
http://www.247wallst.com
Starbucks (Nasdaq: SBUX) growth continues to defy the laws of gravity. Revenue in its last reported quarter grew 21% as its total number of stores rose to over 12,000.
But, consumer spending and it huge footprint could be the company's worst enemies. It has not gone through a recession with anywhere near the number of retail outlets it has now.
Other companies have also watched Starbucks and learned a lesson. McDonalds is now rolling out premium coffee. Success breds imitation.
According to Yahoo! Finance, Starbucks has a P/E of over 50. That does not leave much room if the company see slowing in same store sales, even for a month or two.
Investors have already show their concern about Starbucks last quarter by selling off the stock. It is a great company.
With no margin for error.
http://www.247wallst.com
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