[at Motley Fool] – Starbucks (NASDAQ:SBUX) is having an amazing year and the stock is steaming hot after rising by nearly 80% in the last 12 months. After such a steep rise, investors may be wondering if it’s still a good time to invest in the coffee powerhouse or if the best times are already behind the company. Fortunately, Starbucks still offers a lot of growth potential in the menu.
Starbucks delivered a 13% increase in revenue during the last quarter; this was fueled by the opening of 588 new stores and a healthy increase of 7% in global comparable store sales. The company is aggressively expanding its store count, and this is not hurting sales at existing locations, so demand remains strong and Starbucks is clearly moving in the right direction by betting on growth.
Profit margins are on the rise too, consolidated operating margin expanded 220 basis points to 17.6% during the quarter, and the company generated a big increase of 37% in earnings per share to $0.63. Management is expecting to open approximately 1,500 new stores in fiscal 2014 which in combination with comparable store sales growth in the mid single digits should produce revenue growth above 10% in the next year according to guidance.
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Starbucks Corporation (SBUX), with a current value of $60.65B, started trading this morning at $80.69.
Looking at the stock, its one day range is $80.25 to $80.77 and has traded between $47.85 and $81.62 over the past year.
SBUX shares are currently priced at 30.39x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 23.98x earnings multiple for the same period.
And for passive income investors, the company pays shareholders $1.04 per share annually in dividends, yielding 1.30%.
According to a consensus of 27 analysts, the earnings estimate of $0.69 per share would be $0.12 better than the year-ago quarter and a $0.00 sequential decrease. In looking at the bigger picture, the full-year EPS estimate of $2.66 would be a $0.40 better when compared to the previous year’s annual results.
The quarterly earnings estimate is predicated on a consensus revenue forecast of $4.28 Billion. If reported, that would be a 12.63% increase over the year-ago quarter.
More recently, Pacific Crest Initiated SBUX at Outperform (Sep 27, 2013). Previously, Williams Capital Group upgraded SBUX from Hold to Buy.
With the above information in mind, readers should note that the average price target is $88.13, which is 9.22% above where the stock opened this morning.
Starbucks Corporation (NASDAQ:SBUX), operates as a roaster, marketer and retailer of specialty coffee worldwide. As of September 30, 2012, the company operated 9,405 company-operated stores and 8,661 licensed stores. The company was founded in 1985 and is based in Seattle, Washington.
Tag Helper ~ Stock Code: SBUX | Common Company name: Starbucks | Full Company name: Starbucks Corporation (NASDAQ:SBUX) .