Starbucks About to Offer Buyers a Quick Pick-Me-Up

SBUX appears set to break out above its bull channel

   
Starbucks About to Offer Buyers a Quick Pick-Me-Up

Starbucks (SBUX) — I last covered this stock on July 13, 2012, near $53, with a target of $62, but said investors should “put it on their list of top stocks to buy as long-term holds.”

The largest roaster and retailer of coffee in the world has rewarded buyers with 38% gains so far in 2013. Earnings have improved each year since 2008, and the company is expected to earn $2.24 per share in fiscal year 2013, ended in September, and $2.62 in fiscal year 2014.

Since February, the stock has been trading in a bull channel. A break above the channel occurred in late July, and increasing volume and tape action appear to indicate that another thrust above the channel is about to occur.

Traders should jump on SBUX with a target of $79. Investors should hold their current positions since analysts’ consensus one-year target is $81.

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