We’ve covered Starbucks before, the world’s most famous coffee shop chain despite strong focus on the US and China and a lesser footprint outside of those countries. Succession planning has been the Achilles' Heel of this story, with Howard Schultz having returned to the top job for the third time when we covered the stock back in March 2022. The stock was trading at $88 and we were pretty bearish. Now at nearly $97, that’s roughly a 10% return in 18 months. While it may be a timing issue, that’s actually beaten the S&P 500 index over that time period. What happened that beat our expectations? Welcome to Magic Markets Premium.
Kroger is the OG - Original Grocer! With a history of organic growth and M&A to supplement the story, Kroger has now embarked on the biggest acquisition in its history: the proposed merger with Albertsons. It introduces a lot of risk into the mix, but can it propel the share price CAGR above the index and make this a worthwhile stock to hold?
Deere & Co is like the Apple of tractors, with technologically advanced products and a recognition of the value of building an as-a-service business with recurring income. Historical financial performance is strong to say the least, with this industrial stalwart making a strong case as a buy-and-forget stock. But what does the near-term view suggest?
Foot Locker is a perfect example of a business model that has been cracked wide open by a shift in the value chain. After previous management allowed the company to become a glorified Nike store, the new team is being forced to cut back on Nike because of that company's direct-to-consumer strategy. This creates plenty of uncertainty and a need for a turnaround strategy, which is why the dividend has been suspended.
There are 40,800 McDonald’s restaurants in the world - that’s a lot of Big Macs! Every quarter, there are more golden arches in the world helping people forget their problems with a strong dose of calories. At group level, McDonald’s is a marketing and product design company, rolling out ideas and learnings to a footprint that is heavily skewed towards franchise stores. With a long-term share price performance that beats the S&P500, it’s a strategy that works... but is it worth a buy at current levels?
UPS is part of the logistics oligopoly in the US, with arch-rival FedEx having been covered a few times on Magic Markets before. UPS has had a terrible year, with major labour issues highlighting the risks in this sector. Does it represent an interesting swing trade for the rest of the year?
Apple has been an incredibly strong performer over the past decade. For investors, the focus is on what the next decade will hold, especially with the valuation having moved so much higher over time. Can Apple keep this up, or should investors be cautious?
We keep coming back to Meta on Magic Markets Premium because the company keeps dishing up surprises and volatility. After a spectacular run in the share price, is it time to take profits and stand back?
Johnson & Johnson is far more than just a baby powder company. In fact, the consumer business has been split-off into a newly listed company called Kenvue, with the intention of Johnson & Johnson being a pure-play opportunity in pharmaceuticals and medical devices. As a long-term stalwart in any portfolio, this is a compelling choice.
Swatch has been on a charge this year, finally offering decent performance to long-suffering investors who have witnessed crushing underperformance vs. luxury stocks. Perhaps that comparison is the first problem, as there is far more to Swatch than just luxury brands.