5 Best Coffee Stocks to Buy Now

1. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 55    

Starbucks Corporation (NASDAQ:SBUX) operates as a roaster, marketer, and retailer of specialty coffee worldwide. On November 28, Target declared that it had expanded Starbucks’ curbside pickup service. Target will deliver Starbucks food and beverages in its Drive-Up curbside service at selected locations. 

On November 4, Evercore ISI analyst David Palmer maintained an Outperform rating on Starbucks (NASDAQ: SBUX) stock and raised the price target to $97 from $95, noting that the advisory was less worried about financial year 2023 sales and earnings following the company’s fourth quarter reports.   

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Starbucks Corporation (NASDAQ:SBUX) with 5.8 million shares worth more than $444.7 million.

In its Q2 2022 investor letter, Matrix Asset Advisors, an asset management firm, highlighted a few stocks and Starbucks Corporation (NASDAQ:SBUX) was one of them. Here is what the fund said:

“Starbucks Corporation (NASDAQ:SBUX) is a premier global coffee brand supported by over 32,600 stores across the world. The firm has a long history of beverage innovation and strong employee/barista relations with the firm paying above-market wages and benefits. Starbucks has a strong balance sheet and finances. The company generates steady and consistent cash flow, selling millions of cups of premium coffee every day. The company’s share price declined in part due to its large business in China which was largely shut down due to Covid restrictions and because of rising commodity and labor costs. We think the shares are attractively priced for a company that should grow 10% plus per year with a dividend yield of 2.6% at our average cost.” 

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