Starbucks reports frothy profits
Shares of the coffee chain hit all-time highs Wednesday on a fantastic earnings report.
The company delivered several other impressive numbers as well, including a 7% increase in global same-store sales and a 13% increase in revenue -- no small feat for a company of Starbucks' size. Shares of Starbucks hit a new all-time high Wednesday on the news, but pulled back slightly in trading Thursday.
However, despite the soaring new highs for Starbucks' stock and the company's price to earnings ratio near 39, Motley Fool One analyst Jason Moser still views this stock as a strong buy today.
He still sees growth ahead, and notes the tremendous amount of cash Starbucks brings in. Jason also expects to see continued dividend increases for the foreseeable future, and strongly believes this is a stock investors can buy and hold on to almost indefinitely, as he sees the demand for that cup of coffee in the morning as an investing thesis that won't be changing anytime soon.
The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013!
This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.
More on Top Stocks
Copyright © 2014 Microsoft. All rights reserved.
4 analysts downgrade the stock the day after a disappointing quarterly report.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.