Starbucks Brewing Up Profits

Starbucks Corporation (NASDAQ:SBUX) — The largest coffee roaster and retailer in the world has had a steady stream of earnings gains, and the stock has rewarded its buyers with a 50% run from October 2011 to April 2012. Earnings have improved each year since 2008, and this year the company is expected to earn $1.84 (FY ended Sept. 30) versus $1.62 in 2011. And analysts are looking for $2.29 in 2013.

The stock is trading in a bull market consolidation pattern called a right triangle with support under $52. On Thursday, SBUX flashed a buy signal from the Collins-Bollinger Reversal (CBR), our proprietary internal indicator. And several days ago, the stochastic issued a buy signal.

The intermediate target for SBUX is $62, but investors should put Starbucks on their list of top stocks to buy as long-term holds.

Trade of the Day – Starbucks Corporation (NASDAQ:SBUX) Trade of the Day Chart Key

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