This Magnificent Nasdaq Growth Stock Is Down More Than 40% and Trading at a Once-in-a-Decade Valuation. If It Gets This 1 Thing Right, the Stock Could Soar.
Those who put $10,000 in the initial public offering (IPO) of coffee company Starbucks (NASDAQ: SBUX) more than 30 years ago are millionaires today. In short, this has been an absolutely magnificent growth stock. However, this magnificent growth stock is now down more than 40% from its all-time high in 2021, which is one of the worst (and longest) pullbacks the stock has ever experienced.
In hindsight, the impending pullback for Starbucks stock should have been obvious. After all, when it hit an all-time high in 2021, the stock was also trading at a decade-high price-to-sales (P/S) valuation of 6 -- that was easily 50% to 100% more than what was normal for this company, suggesting shares were overvalued at the time.
SBUX PS Ratio data by YCharts.
Source Fool.com
Starbucks Corp. Stock
Starbucks Corp. is currently one of the favorites of our community with 19 Buy predictions and no Sell predictions.
As a result the target price of 103 € shows a positive potential of 38.42% compared to the current price of 74.41 € for Starbucks Corp..
