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Why This Strategist Says Starbucks Has The Most Upside In Restaurant Space

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Adam Eckert
·1 min read
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On CNBC's "Power Lunch," Federated Hermes equity strategist Steve Chivarone and Miller Tabak equity strategist Matt Maley discussed their views on economic reopening.

Chivarone said he expects consumers to shift spending from home goods to experiences including restaurants, casinos and hotels, adding it will be a "summer of reopening" in the U.S.

Maley was asked what names he likes in the restaurant space.

All of the restaurant stocks got absolutely crushed about this time last year, so the rally has been spectacular, he told CNBC.

The problem is that basically all of them are getting quite overbought, but there is one exception and that's Starbucks Corporation (NASDAQ: SBUX), the Miller Tabak equity stategist said.

"It's finally breaking out," he said of the coffee stock.

"This is one that I think has more upside movement. Since some of these names are a little bit overbought, I want to own the one that has the most upside and that's Starbucks."

SBUX Price Action: Starbucks is up more than 67% since this time last year. Starbucks shares were up 0.36% at $113.56 at last check Wednesday.

Image by Engin Akyurt from Pixabay.

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