11 Best Coffee Stocks to Buy Now

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1. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 84

Starbucks Corporation (NASDAQ:SBUX) produces, markets, and retails specialty coffee. It operates through the following segments: North America, International, and Channel Development. The company recently experienced a growth slowdown amidst worsening global economic conditions, but the stock is showing resilience.

On March 18, Investment firm Argus upgraded Starbucks Corporation (NASDAQ:SBUX) to a Buy from Hold with a $115 price target, categorizing its recent stock decline as a buying opportunity. The firm believes investor fears surrounding slowing same-store sales in the restaurant industry due to economic concerns are overblown. The analyst told investors in a research note that he expects Starbucks Corporation (NASDAQ:SBUX) to benefit from its focus on brand marketing, digital improvements, and a reduction in its sales promotions. Argus also believes that store remodeling and menu simplification are likely to raise same-store sales and boost company customer traffic.

Invesco Growth and Income Fund also expressed bullish sentiments for Starbucks Corporation (NASDAQ:SBUX) in its Q3 2024 investor letter, stating the following:

“Starbucks Corporation (NASDAQ:SBUX): The coffee retailer has struggled with China’s economic softness, declining sales and weaker US store traffic that have hampered revenues and profit margins. However, we believe the company has several positive, long-term catalysts, including strong growth in store count, better labor relations, improving productivity from labor, technology and innovation, and easier future earnings comparisons. We believed a management change was imminent, and shortly after we purchased the stock, Starbucks named a new CEO, which was seemingly greeted enthusiastically by investors.”

Overall, SBUX ranks first among the 11 best coffee stocks to buy now. While we acknowledge the potential of coffee stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SBUX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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