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High Growth Stocks

SBUX - Starbucks Corporation

We showcase some of the best growth stocks on the market. The stocks that make the list are stocks that have shown a truly impressive performance yielding exceptional returns for investors who hold these stocks.

Starbucks Corporation NYSE:SBUX has reward the patient investor. While the stock's price gain stalled since late 2015, the stock has recently resumed its strong uptrend. SBUXs performance is illustrated with a 10-year stock chart shown below.

Chart 1. Ten year stock chart for SBUX

monthly Chart SBUX

The strong stock performance from this specialty coffee company is as shown below.

Investor returns:

  • 10 year gain of 1163% vs. 234% for the S&P 500
  • Gain since the Oct-2007 bull market top of 469% vs. 86% for the S&P 500
  • Gain since the Mar-2009 bear market bottom of 1722% vs. 329% for the S&P 500
  • Loss during the Oct-2007 to Mar-2009 bear market of -69% vs. -57% for the S&P 500
  • Gain over the last 12 months of 29% vs. 9% for the S&P 500

SBUXs statistics are certainly impressive and this large-cap coffee can certainly provide good returns for investors - even allowing for the ordinary return since 2015.

The financials for SBUX are shown below.

YearRevenueEPS ROEBook ValueEmployees 2014164501.37 39%3.50191000 2015191601.84 47%3.90157000 2016213201.91 48%4.00254000 2017223901.99 53%3.80277000 2018247203.27 64%1.00291000

SBUX has generated strong growth with its revenue and earnings growing. The company also operates with a high return on equity.

Key fundamentals:

  • SBUX is a large-cap specialty coffee company operating worldwide and its stock trades around $720 million per day.
  • The Forward PE ratio is around 29 (based on analysts consensus forecast earnings).
  • The Forward PEG is around 2.5 which means the stock is reasonably expensive (as most growth stocks have forward PEGs in the 1.5 to 2.5 range).
  • The bankruptcy risk can be calculated using the Z-score. SBUXs Z-score is 3.2 which makes SBUX a low bankruptcy risk.

SBUX is certainly a strongly growing company. The analysts forecasts are for revenue growth of 8% and earnings growth of 10% for 2020.

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