3 Unstoppable Brands Consumers Adore And Investors Crave!

Stocks

Stock	Price	52 Week Range	Marketcap	EPS	Dividend Yield	Chart (24H)	Sector	Employees	Last Updated
Starbucks Corporation SBUX	$89.51		101.75B	2.31	2.68%		Consumer Cyclical	361,000	9 hours ago
Amazon.com, Inc. AMZN	$223.81		2.39T	6.56	0.00%		Consumer Cyclical	1,560,000	9 hours ago
Meta Platforms, Inc. META	$747.72		1.88T	27.59	0.28%		Communication Services	76,834	9 hours ago

Buy these three companies that consumers, and investors, adore

Aug 1, 2024, 9:16 am EDT

In a market overflowing with investment options, stocks bolstered by strong consumer loyalty can be game-changers. Today, we’ll look at three standout consumer-centric brands demonstrating both enduring loyalty and significant growth potential: Starbucks (SBUX), Amazon (AMZN), and Meta Platforms (META). These companies are not just market leaders but also favorite choices among consumers, making them compelling investments. Let’s delve into why these brands deserve your attention and investment.

Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace 

Starbucks (SBUX): Reignite Your Portfolio With This Global Giant

Starbucks Corporation

SBUX

$89.51

2%

Overview and Current Status
Starbucks (NASDAQ: SBUX) began as a humble coffee shop in Seattle’s Pike’s Place Market. Today, it’s the third-largest restaurant chain globally. As of July 31, 2024, Starbucks trades at $77.95, reflecting its significant market presence and continued consumer loyalty. Analyst expectations suggest an implied upside of over 10% at this price point.

Investment Rationale
Recent Performance
Starbucks recently met revenue estimates, a positive sign after missing them for the previous two quarters. This turnaround hints at a potential uptrend, encouraging investors. However, it’s worth noting that year-over-year (YoY) revenue and earnings have declined.

External Factors at Play
The dip in performance is largely attributed to inflationary pressures and public backlash related to the company’s handling of sensitive social issues, such as the situation in Gaza. Despite these challenges, as these external pressures wane, an uptick in total revenue and same-store sales is expected.

Growth Potential
With an anticipated upside of over 10%, Starbucks stands as a timely investment. The resilience of the brand, coupled with an expected improvement in economic conditions, positions it for a strong comeback. Once inflation and public sentiment stabilize, Starbucks is poised to reclaim its growth momentum, benefiting early investors.

Analyst Ratings and Forecasts

Summary of Analysts’ Outlook:
Analysts have a generally positive outlook on Starbucks, with a consensus rating of Overweight. The average price target of $123.14 suggests a potential gain of 14.1% from the current price. Many analysts believe that Starbucks’ strong brand, global expansion, and digital transformation efforts will drive growth and profitability.

Sources:

• Refinitiv
• Bloomberg
• Yahoo Finance
• TipRanks

Amazon (AMZN): The Relentless Market Titan You Can’t Ignore

Amazon.com, Inc.

AMZN

$223.81

2%

Overview and Current Status
Amazon (NASDAQ: AMZN) is a global giant in various sectors, from e-commerce and cloud computing (AWS) to hospitality through Amazon Go and Whole Foods Market. Trading at $186.98 as of July 31, 2024, with a market cap of $1.94 trillion, Amazon remains a staple in consumer life.

Investment Rationale
Financial Performance
Over the past year, Amazon’s revenue has grown by $60.8 billion, buoyed by a profit margin of 6.38% and an operating margin of 10.68%. Its Prime membership has surpassed 200 million subscribers, significantly boosting revenue. Moreover, Amazon boasts a YoY quarterly revenue growth rate of 12.50%.

Upcoming Earnings
Today, August 1, 2024, Amazon is set to announce its earnings, with analysts predicting sales of $148.7 billion, marking a 10.7% increase from last year. A significant focus is on Amazon Web Services (AWS), which drives nearly 16% of Amazon’s overall revenue, particularly its AI capabilities, expected to bolster future growth.

Growth Potential
Amazon’s diverse revenue streams, strong fundamentals, and innovative prowess, especially in AI and cloud services, make it an attractive investment. Its robust earnings and massive consumer base offer a compelling narrative for its inclusion in any well-rounded investment portfolio.

Analyst Ratings and Forecasts

Summary of Analysts’ Outlook:
Analysts are overwhelmingly bullish on Amazon, with a consensus rating of Overweight (Buy). The average price target of $3,843.41 implies a potential gain of 24.1% from the current price. Analysts praise Amazon’s dominance in e-commerce, its growing cloud computing business (AWS), and its increasing focus on advertising and artificial intelligence.

Sources:

• Refinitiv
• Bloomberg
• Yahoo Finance
• TipRanks

Meta Platforms (META): Don’t Miss Out on This Digital Frontier Leader

Meta Platforms, Inc.

META

$747.72

1%

Overview and Current Status
Meta Platforms (NASDAQ: META), previously known as Facebook, Inc., dominates the social media landscape with platforms like Facebook, Instagram, WhatsApp, and Messenger. It also pushes the envelope in VR and AR through its Oculus division and Metaverse initiatives. Following a positive earnings report, META stock has increased by 3% and trades at levels suggesting further growth.

Investment Rationale
Financial Performance
Meta’s earnings per share (EPS) of $5.16 exceeded the consensus estimate by 9.3%, showing robust financial health. The company reported a staggering 116% YoY quarterly earnings growth and a 27% increase in revenue, reflecting its solid market position.

Cash Flow and Financial Health
With an operating cash flow of $76.36 billion, Meta generates substantial cash from its core operations. This financial strength enables it to reinvest in growth opportunities or return value to shareholders via dividends or share buybacks, bolstering its appeal to investors.

Growth Potential
Meta’s projected growth potential of 10.2%, reflected in its target price estimate of $523.30, underscores its long-term investment viability. Continued innovations in social media and substantial investments in VR, AR, and the Metaverse position Meta as a leader in digital experiences, making it a worthy addition to any forward-looking portfolio.

Analyst Ratings and Forecasts

Summary of Analysts’ Outlook:
Analysts are overwhelmingly bullish on Meta Platforms, Inc. (META), with a consensus rating of Overweight. The average price target of $245.14 suggests a potential gain of 34.1% from the current price. This optimism is likely driven by Meta’s dominant position in the social media space, its growing e-commerce and online advertising businesses, and its investments in emerging technologies like artificial intelligence and virtual reality.

Sources:

• Yahoo Finance
• TipRanks
• Refinitiv

In summary, Starbucks, Amazon, and Meta Platforms are more than just beloved brands; they are stalwarts with substantial growth potential. Each company showcases strong financial performance, significant consumer loyalty, and strategic growth opportunities. Investors seeking a blend of stability and long-term growth should find these stocks compelling additions to their portfolios.