Reasons To Be Bullish On Starbucks Stocks

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Everybody knows Starbucks (SBUX) as a very successful coffee company that has not lost its competitive advantages despite market changes, increased competitors, and fluctuating trends. For those who are trading on the market, Starbucks is a great company to invest in. You may have questions about why it is considered a good investment. 

Well, Starbucks is a global company with 34 000 stores worldwide in 80 different counties. The history of the company as well as the experience of those who have already invested in Starbucks stocks are pretty positive and commonly profitable. It is because of the great and permanent popularity and specialty of Starbucks products. Reviews and discussions of Brewlogy.com about the company one more time outline its specialties. 

Here we have to mention that according to recent prices, experts recommend investing in Starbucks during 2022 because the price is 35% reduced compared to the average. In addition to shares, the pierce-to-earnings which is the same as the P/E ratio are over 20. So for interested traders, the current valuation makes it a pretty attractive investment alternative. 

These big changes are not usual for this company's stocks. Since 1992 they had pretty stabilized prices where the return of the chain was over the 17%, but because of the global fluctuations and unstable conditions, the prices significantly reduced. This is the 30th anniversary of Starbucks and it is faced with a 33% decrease in share prices. 

The main reason for this unusual condition is inflation and the difficult situation in China because of lockdowns. It damaged many businesses which were operated or somehow connected to China’s market. So Starbucks would not be an exception. 

In this article, we will discuss how worthy it can be to invest in Starbucks stocks. It is important to outline that the current market is not stabilized and the volatility is pretty high. So before you decide to make any kind of investment, you should be ready for sudden movements in prices. 
 

Is It A Good Idea To Invest In Starbucks Stocks, Now?

Because the main decision is up to you and is dependent on your trading goals as well as strategies, let’s review the main recommendations from different experts about Starbucks' current stock prices. According to the situation of August 2022, most experts are positive about Starbucks' current position. 

Even though generally China caused a lot of barriers and difficulties in improving several factors, it can have a positive impact on sales. Also, experts consider that the recent situation will significantly reduce the unionization risk and the number of transactions will increase, especially in North America. Remember that these predictions and recommendations about the bullishness of Starbucks are from Wall Street’s analytics. 

You may think why it should be a good decision to make the investment in stocks that have historically reduced prices. Well, the same experts, as well as firms’ representatives, claim that by 2023 sales will grow by at least 10%. This will resolve the current situation of reduced prices significantly, which means that investors will get great profit chances. 

On the other hand, the representatives say that the company is going to start a big change which will be a new class and level in the trading market. This includes implementing new technologies, more types of equipment, improvements in speed, and developing the delivery. This will have a positive impact on the global stock process too because the new strategies and changes will positively affect the company's effectiveness. 

So, if we follow the company's promises and experts’ predictions, we can say that even though the current situation is not the best the company has ever had, it is worth taking a risk and investing in Starbucks stocks according to these low prices. As the founder of the company, Howard Schultz says, if you decide to buy the stocks at current prices, you can consider it a discount for future great profits. 
 

More Specific Reasons To Be Bullish On Starbucks Stocks

Earlier, we outlined the current situation and the probable predictions about Starbucks stocks. This is significant because it validates the main reasons why you should be bullish on the stocks of this impressive company. 

As we mentioned the central example of predicting a better situation in Starbucks’ stock market is that the company is actively implementing changes. More specifically, because of the current situation in China, the focus is to grow market share in this county. Also, in 2022, the company will actively add new stores around the United States. 

Another significant reason is that sales are already growing. According to the late date, the change is growth by 6%. Till the end of the year, the company, as well as experts, predict the great growth of sales. 

When you decide to invest in a pioneer company with great and stable market history, you need to have faith and braveness to risk and invest because the hard periods in Starbucks' never lasted for long. These are the main reasons for positive recommendations from top experts as well as company representatives. 


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