Guggenheim just initiated coverage on this coffee giant, with a “Buy” rating. The shares split 2-for-1 on March 30, and began trading post-split April 9. This is the first stock split for the company since October 2005.
Starbucks (SBUX)
from 2 for 1 Stock Split Newsletter
There were only three splits in March. WSFS Financial (WSFS) was automatically eliminated for consideration because of its small size and thin trading volume, leaving two well known names; Starbucks (SBUX) and Ross Stores (ROST). 2 for 1 sold off a big winner in ROST less than a year ago but, for this month, Starbucks gets the pole position. To check that I had made the best choice, I also included several other promising recent splits in the list for this month’s analysis. See the rankings below.
There must be very few who have never had an occasion to buy something at one of the over 15,000 Starbucks (SBUX) stores. I was surprised to see SBUX at the top of the rankings because of its higher than average valuation metrics. However, it was scored quite well by some of the other criteria in the ranking algorithm, including those involving growth, profitability, and return.
The reasonable dividend and lower than average volatility were also on the plus side. SBUX will be added to the portfolio.
Neil Macneale, 2 for 1 Stock Split Newsletter, www.2-for-1.com, 408-210-6881, April 17, 2015