Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Reasons Starbucks Stock Deserves the Premium

There's no way around it; Starbucks' (NASDAQ: SBUX  ) stock is expensive. 

Priced at 31 times last year's earnings, and sitting close to an all-time high, the company's shares are valued like one of its "indulgence" drinks right now.

Caramel Frappuccino, anyone?

But there are good reasons underpinning that premium valuation. In the video below, Fool contributor Demitrios Kalogeropoulos discusses three of Starbucks' biggest avenues for growth over the next few years. Demitrios argues that success in these ventures, which include loyalty cards, store expansion in the U.S., and a new food menu, could make today's share price seem completely fair in retrospect.

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2474751, ~/Articles/ArticleHandler.aspx, 9/27/2016 2:58:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,223.88 129.05 0.71%
S&P 500 2,158.98 12.88 0.60%
NASD 5,304.52 47.03 0.89%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 2:42 PM
SBUX $54.15 Up +0.11 +0.20%
Starbucks CAPS Rating: ****