POSTED ON March 26, 2021 BY MarketClub Team
Trends are a big part of what Wall Street is all about. And, just like fashion trends, they tend to repeat. Stocks that were once all the rage fade over time as new opportunities arise. But just as the market rises and falls in a cyclical pattern, so do good companies’ popularity.
The COVID vaccine availability and the return to business-as-usual means that solid companies are now excellent bargain buys.
For investors, one familiar name looks like it could be primed for outsized returns.
A Best-in-Breed Company and Consumer Favorite
Starbucks Corporation (SBUX) is a $128 billion niche restaurant chain company primarily known for its premium coffee selection. It’s the largest coffeehouse chain in the world, with over 30,000 locations in more than 70 counties.
The company reported a first-quarter earnings beat of $0.61 per share compared to the analysts’ estimate of $0.55 per share. Same-store sales in the U.S. fell 5% but came in higher than expected. Same-store sales in China turned positive for the first time since the COVID outbreak began. Total revenues came in slightly lower than expected at $6.75 billion compared to $6.93 billion.
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Trends are a big part of what Wall Street is all about. And, just like fashion trends, they tend to repeat. Stocks that were once all the rage fade over time as new opportunities arise. But just as the market rises and falls in a cyclical pattern, so do good companies’ popularity.
The COVID vaccine availability and the return to business-as-usual means that solid companies are now excellent bargain buys.
For investors, one familiar name looks like it could be primed for outsized returns.
A Best-in-Breed Company and Consumer Favorite
Starbucks Corporation (SBUX) is a $128 billion niche restaurant chain company primarily known for its premium coffee selection. It’s the largest coffeehouse chain in the world, with over 30,000 locations in more than 70 counties.
The company reported a first-quarter earnings beat of $0.61 per share compared to the analysts’ estimate of $0.55 per share. Same-store sales in the U.S. fell 5% but came in higher than expected. Same-store sales in China turned positive for the first time since the COVID outbreak began. Total revenues came in slightly lower than expected at $6.75 billion compared to $6.93 billion.
Continue Reading...
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