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3 Reasons Why Starbucks Stock Is Going to $100

4028mdk09 via Wikipedia

Here’s an outlier for you. There are 124 S&P 500 stocks currently trading over $100; not one of them is Starbucks Corporation (SBUX). Starbucks stock has gained 16,376% since it went public June 26, 1992, at $17 per share.

Of course, part of that is due to the company splitting its stock six times over the last 24 years, each time on a 2-for-1 basis.

If you bought one of those precious $17 shares back in 1992, on a split-adjusted basis they were worth 27 measly cents. What can you buy with that at today’s prices? Not much.

Clearly, it’s one of the all-time great American retail success stories and CEO Howard Schultz has a lot to do with that, but if you think Starbucks stock doesn’t have more in the tank — think again. It does.

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Now, can it make it to $100, which is almost double where it currently trades? Absolutely it can. Whether Schultz and company let SBUX stock reach this level is another story altogether. Starbucks stock hit a high of $95.23 just before the last time it split on April 9, 2015.

Close, but no cigar.

So maybe the title of my article should read, The 3 Reasons Why SBUX Stock Is Going to $95, Not $100.

Whatever the target price, I believe Starbucks stock is going to get there by the end of 2018. Cooperating stock markets a must; here are three reasons it could happen.

This slide show is from InvestorPlace, not the Kiplinger editorial staff.

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