Starbucks About to Perk Up : SBUX

Starbucks Corp. (NASDAQ:SBUX) — The largest roaster and retailer of coffee in the world has a steady stream of earnings gains, and the stock has rewarded shareholders by almost doubling in the past year.
Earnings have improved each year since 2008, and this year the company reported earnings of 40 cents versus analysts’ estimates of 38 cents. It is estimated to earn $1.84 in 2012 versus $1.62 in 2011, and $2.25 in 2013.
But the stock market’s recent lethargy has taken a toll on the price of SBUX, dropping it from a high of $62. It is trading in a common bull market consolidation pattern called a “flag.” It gapped down through its first support at the 20-day moving average (green line) and the next support is at $56. But our buy under price is at its 50-day moving average now at around $54.50.
The intermediate target for SBUX is $62, but long-term investors should put Starbucks on their list of top stocks to buy as a long-term hold.

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