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Don’t Miss Out: Starbucks is Becoming a Great Value Investment

Key Points
Starbucks stock is about to enter a potential buy zone, offering a great deal in the sector.
Understanding the power behind the Starbucks name can help you make sense of the price declines and conduct a more sensible analysis.
Analysts are bullish on the stock and expect it to continue rising.
Starbucks NASDAQ: SBUX is a resilient business with a strong moat.
Starbucks has become a social currency, with people associating the brand with a sense of inclusion and status.
Starbucks appeals to a wide range of age demographics, making it a standout in the consumer stocks space.
The stock is currently poised to decline due to non-business-related issues, which presents a buying opportunity.

Dragged by the Current
Starbucks is part of the Invesco QQQ NASDAQ: QQQ ETF, so any decline in the index will likely impact the stock.
Invesco QQQ has outperformed the SPDR S&P 500 ETF Trust NYSEARCA: SPY this year, creating a valuation gap between NASDAQ holdings and S&P 500 holdings.
Historically, these indices have been correlated by roughly 85%, so either the S&P 500 will need to rally or the NASDAQ sell-off will return to normal.

Silver Bullet, at the Right Time
Starbucks has the ability to pass on increased costs to consumers due to its strong brand loyalty and pricing power.
By aligning itself with popular shopping environments like Target and Ulta Beauty NASDAQ: ULTA, Starbucks is set to grow.
The company’s financials, including a consistent gross margin of over 25% and a net margin of over 10%, showcase its strength.
ROIC (return on invested capital) has been between 15-20% over the years, indicating the company’s ability to generate profit.
Analysts predict a 23.6% upside for the stock, and it also offers a 2.5% dividend yield.

In conclusion, Starbucks is presenting a great value investment opportunity. With its strong brand, pricing power, and financial stability, the stock has the potential for significant growth. Analysts are bullish on its future prospects, making it a stock to consider for investment.

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