Why Starbucks (SBUX) is a Top Value Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Starbucks (SBUX)
Founded in 1985 and based in Seattle, WA, Starbucks Corporation is the leading roaster and retailer of specialty coffee globally. In addition to fresh, rich-brewed coffees, Starbucks’ offerings include many complimentary food items and a selection of premium teas and other beverages, sold mainly through the company’s retail stores. The company’s popular brands include Starbucks coffee, Teavana tea, Seattle's Best Coffee, La Boulange bakery products and Evolution Fresh juices.
SBUX sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Retail - Restaurants industry's P/E of 21.8X, shares of Starbucks are trading at a forward P/E of 23.7X. SBUX also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 20.3X, and a Price/Sales ratio of 3.1X.
A company's earnings performance is important for value investors as well. For fiscal 2024, 12 analysts revised their earnings estimate higher in the last 60 days for SBUX, while the Zacks Consensus Estimate has increased $0.08 to $4.14 per share. SBUX also holds an average earnings surprise of 6.9%.
SBUX should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
