$Starbucks(SBUX)$Starbucks is trading near its historical low PE range but I believe there are significant headwinds investors should consider.
1. Unionization could lead to increasing SG&A costs and the magnitude of this increase would be unknown now
2. An impending recession means that consumer spending on $7-8 drinks will inevitably be cut hence revenue and earnings could fall
3. Starbucks is no longer a high growth companyhence should revalue to a lower PE over time
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- ckww·2022-06-23This is more of a luxury item. When recession comes, people will cut cost and this coffee chain will be affected.LikeReport
- HilaryWilde·2022-06-24Your post is very informative, thanks for sharing.LikeReport
- MichT·2022-06-23True to say thatLikeReport
- Hoys·2022-06-24GoodLikeReport
- 新虎分析·2022-06-24👍 Yes1Report
- 新虎分析·2022-06-24👍LikeReport
- Universe宇宙·2022-06-23[LOL]1Report
- kerestia·2022-06-23sell!LikeReport
- GlennG1·2022-06-23👍LikeReport