How to Buy Starbucks Stock Now, Price Forecast and Dividend Guide
Starbucks stocks coffee chain are, without a doubt, the favourite investment for those who wish to invest in the restaurant sector. Starbucks is one of the world's best-known brands and has thousands of outlets around the world. Due to its business, it has suffered from the coronavirus pandemic. However, with the development of vaccines and a return to normal economic life on the horizon, this could be the perfect time to buy Starbucks stock.
In this analysis, we will review the strengths and weaknesses of Starbucks shares, as well as its recent stock performance. We will also look at its future prospects, both from a fundamental and technical perspective. This will allow us to know definitively if Starbucks stock is a good investment. Finally, we will not forget to introduce you to a broker that we consider ideal for investing in Starbucks stock.
Starbucks is not a coffee chain like the others. First of all, it is by far the biggest coffee chain in the world. Starbucks will even be the largest restaurant chain in the world ahead of McDonald's if it meets its goal of reaching 55,000 stores worldwide by 2030.
Currently, Starbucks has 32660 stores in 83 countries. Founded in 1971, Starbucks' business has not changed much since its inception. However, it has been innovative enough to ensure its continued dominance in the coffee chain industry throughout its history. Starbucks is also a company that has proven its ability to adapt quickly to market changes. Before the covid-19 pandemic, Starbucks planned to renovate many of its stores to enhance their use as a social venue.
But covid-19 thwarted those plans. In this context, Starbucks was able to react quickly by exponentially expanding its online sales and in-store collection activities, proving its ability to adapt. This allowed the company to quickly erase the impact of the pandemic and set new all-time records in July, confirming that buying the Starbucks stock today is a wise investment.
Starbucks Stock Overview
Starbucks stock is listed in the United States on the Nasdaq under the symbol SBUX and the ISIN code US8552441094. The company has a market capitalization of $138 billion. It is up 3.5% over the past 52 weeks, a period in which it has traded between a low of $81.77 and a high of $126.32.
It should be noted that Starbucks is included in the largest U.S. stock indices, such as the S&P 500, the Dow Jones and the Nasdaq.
History of the Starbucks Stock Quote
From the early 2010s, when the stock was worth about $10, to its July high of $126, Starbucks stock quote has posted an 1160% increase in just over 10 years, an average increase of over 100% per year. This means that since 2010, Starbucks stock has on average more than doubled in value every year.
The only significant correction period that Starbucks quote experienced was in late 2019, early 2020, and culminated in the coronavirus pandemic that pushed the stock to a low near $50 in March 2020. However, 8 months later, the stock was back above $100.
The year 2021 then saw Starbucks' stock rise further so far, and Starbucks' stock price shows no signs of weakness on the long-term charts, leaving open the possibility of imminent new highs.
Why Invest in Starbucks Stock Today ?
Below, we'll look at the key fundamentals that show that buying Starbucks stock today is a smart investment idea, both in the short and long term.
One of the Most Exposed Stocks to the Reopening of the Economy
Tens of millions of high school students and workers worldwide are accustomed to stopping at the Starbucks around the corner on their morning commute, or meeting up with friends there at night. In addition to being a purveyor of coffee, Starbucks is also a great social place to be.
In this sense, it is one of the stocks that should benefit the most from the return to normal economic and social life following the covid-19 pandemic. Moreover, this return to normalcy has already begun with the development of vaccines, and the results of Q2 have shown that the company has benefited greatly.
The Company Faces Little Competition
There are few countries where there are coffee chains strong enough to compete with Starbucks, and there are no serious competitors on a global scale. It's safe to say that Starbucks enjoys a largely dominant position in the coffee chain business.
And given the nature of the business, which is selling coffee, there is little chance that a disruptive company will challenge that dominance. As for competing with Starbucks on its own turf, it's taking on a behemoth that enjoys a huge competitive gap with its closest competitors.
Management Is Optimistic About the Future
As we'll see later in this analysis, analysts are optimistic about Starbucks' future. And what is reassuring, at a time when many companies are cautious about their prospects, is that Starbucks' management is showing unfailing enthusiasm.
CEO Kevin Johnson declared: "This quarter represents the beginning of a multiyear tailwind for Starbucks". He highlighted the double-digit annual growth expected for the coffee industry, and the company's ability to differentiate and build loyalty, as well as its premium positioning, speaking of "powerful trifecta that provides our business with a multiyear tailwind".
The Starbucks Stock Dividend is High and Steady
With a yield that has ranged from 1.5% to 2% over the past two years, the Starbucks stock dividend is quite comfortable. Thus, this is also an income-generating investment, and a great option for long term portfolios.
This makes it the ideal stock for combining strong growth potential with steady income, as the company has been paying dividends to its shareholders for many years.
Starbucks Stock Forecast: Will the Price Go Up?
Let's now look at the forecast for Starbucks stock forecast from several angles: Financial Forecast, Technical Analysis, and Professional Analysts' Recommendations.
There are currently 18 analysts that follow the share and provide Starbucks stock forecast. The majority of them, 13, recommend buying the stock, while 5 recommend holding it. None of them recommend selling.
The average target for these 18 analysts is $132, which implies a 13% upside potential for Starbucks stock price. However, the most bullish analyst for the stock has a target of $145, which is 24% above current prices.
From a technical point of view, we can see that the weekly chart of Starbucks shares shows an unambiguous long-term uptrend. As the stock is evolving close to all time highs, we can only rely on psychological thresholds to forecast the next targets.
In this context, the $150 level could be an ideal target for the next few weeks, before a possible rise to $200 early next year. The weekly chart shows that Starbucks stock has been in a bullish channel since November 2020. With the stock currently near the lower bound of this channel, now could be a great time to buy Starbucks.
Finally, on the downside, note that only a return of Starbucks' share price below $100 would challenge the positive underlying trend. But overall, the Starbuck stock forecast are bullish from a technical point of view.
Where to Buy Starbucks Stock?
It is effortless to open an account with an online broker and buy shares. But it is much more challenging to choose the right broker. Indeed, there are many brokers on the market, and some are to be avoided.
We have reviewed dozens of brokers to determine which one is the best to buy Starbucks stock to save you time. We have determined that ZFX is an ideal intermediary. This broker was born in 2018, which makes it a fairly new broker. However, the security is not to be questioned, as the FCA regulates the broker.
The trading platform offered by ZFX is the famous MT4 platform, which is a favorite of millions of traders worldwide, for its advanced features in terms of analysis and automatic trading Finally, it should be noted that ZFX is not limited to stocks, since it is also possible to invest in forex, commodities, or indices.
How to Buy Starbucks Stock Easily?
Buying Starbucks stock from the broker ZFX is a quick and easy process. In fact, you can open an online account in just a few minutes by following these steps:
- 1 - Register with ZFX
- 2 - Verify your ZFX account
- 3 - Make your first deposit
- 4 - Buy Starbucks stock
Let's go through each of these steps in detail.
1 - Register with ZFX
This first step is done directly on the ZFX homepage, where you will have to click on the "open an account" button. This will bring up a registration form. Enter the required details as shown in the image below.
2 – Verify your ZFX Account
Note that you will then be asked to verify your phone number via an SMS procedure. Immediately after this step, you will be able to download the MT4 platform.
You will also be asked to make a deposit. You will then use these funds to buy Starbucks stock.
3- Make Your First Deposit
To get started, you will need to click on the "make deposit" button on the screen displayed immediately after registration.
You will need to choose a payment method. We will use the most common payment method as an example, i.e. credit card.
You will have to enter your credit card information before the final validation of the payment.
4 - Buy Starbucks Stock
Once your documents have been validated by ZFX customer service, you are ready to buy Starbucks stock. To do so, download the MT4 platform using the link provided by ZFX, then login using your details also provided. You will then get access to ZFX's full catalogue of assets and can invest in SBUX in the way that suits you.
Bottom Line: Should You Buy Starbucks Stock?
Starbucks stock has surprised with its quick recovery from the initial impact of the covid-19 pandemic, and has emerged stronger, which is rare. Indeed, the stock is close to record highs, yet there are no signs of it losing steam. Moreover, there are many indications that Starbucks stock could still rise exponentially despite its recent sharp rise.
In fact, professional analysts overwhelmingly recommend buying the stock, and both the latest results and forecasts for the next few years point to its continued financial health. To sum up, buying Starbucks stock definitely seems like an excellent investment idea.
If you're like millions of other investors, we recommend that you check out ZFX, which has some of the lowest fees in the market and allows you to buy Starbucks stock via MT4, the world's most powerful trading platform.