U.S. News & World Report: Pros and Cons of Buying Starbucks Stock
Pros and Cons of Buying Starbucks Stock
Analysts says SBUX stock should grow, thanks in part to the company’s expansion in China.
Brian O’Connell, Contributor | USNews.com | June 4, 2018
Starbucks Corporation (Nasdaq: SBUX) has had a rough ride over the past two months, most notably over a highly-publicized incident at a Philadelphia store where two African-American men were arrested after refusing to leave the premises, after being accused of not buying any food or drink at the coffee retailer.
The company has since apologized to the two men, and has rolled out an anti-bias campaign to ensure similar incidents don’t happen again. The move, which included an anti-bias day in late May where 8,000 Starbucks were closed for sensitivity training, placed a hot spotlight on the company.
How big a hit? Starbucks saw its brand reputation metric slide to its lowest level in in 10 years, according to a YouGov BrandIndex score released during the last week of May.
“Stuck in the mud – or latte – is the easiest way to characterize Starbucks stock,” says Sam G. Huszczo, owner of SGH Wealth Management, in Southfield, Michigan. “Since mid-2015, Starbucks has been trading flat around $57 per share, although its valuations seem relatively fair.”