Starbucks is added to the list rated Buy at $52.75.
Starbucks is not a screaming Buy but it is a solid blue-chip type company that is very likely to be a decent invest over the long term. If you are customer then why now own at least some shares? And even as a non-customer there is a satisfaction that comes with owning a piece of an obviously prosperous business that most of us see so often both near where most of us live and work as well as where most people travel. Recent weakness in the stock price combined with earnings that have been rising provide, I believe, a buying opportunity.
Starbucks’ stock price has mostly trended down since it reached its high of about $63 almost three years ago around October 1, 2015. It did briefly rise and surpass that high at around $64 on May 1, 2017. But it’s now down about 17% from those highs. Prior to its 2015 peak, Starbucks had absolutely soared from lows briefly under $5 in 2009. That low had come in the financial crisis after Starbucks had reached highs of around $19 in 2006.
By the way, when looking at a stock chart that covers decades be aware that normal arithmetic scales really distort the history of the price gain. A log chart is really the ONLY way to properly look at the long term trend in any stock price that has changes substantially over 20 years or especially 30 or more years. The higher the percentage average gain in the stock price the more an arithmetic chart distorts the trend. Note that on the Yahoo charts the default scale is arithmetic. But you can click the interactive chart option then choose maximum time period and then under settings change to the log scale. The picture changes drastically between arithmetic and log. Only the log chart is useful if trying to see if the price trend is similar in recent years to distant past years.
Most stocks rise in the long term for the simple reason that they make money most years and they seldom distribute all of the earnings as dividends. Stock prices can certainly go down over any given period of time. But over long periods of time if a company is making money most years and is retaining a large part of the earnings to grow the business, then the stock price almost has to rise (unless it started out at some ridiculously inflated level).