Restaurant stocks are back on the menu as reopening retail picks up pace.
Matt Maley, chief marketing strategist at Miller Tabak, agreed with Atlantic Equities on one of these names.
“The rally since last summer has been spectacular. The problem is that basically everyone is pretty overbought. That probably means they’ll take a little breather and then move much higher, but there is one exception. There is a stock that that aren’t heavily overbought, and that’s Starbucks, “Maley told CNBC.”Trading nation” on Tuesday.
Maley said Starbucks took a hit and announced its profits in January but has since broken out to higher highs.
“This is one that has more upside for a group that should do well for the rest of the spring and summer,” he said. “I want whoever has the greatest advantage. For me, that’s Starbucks now.”
Starbucks stock was up 4% this week but underperformed S&P 500 That year, 6% was added against the broader market’s growth of nearly 9%.
Steve Chiavarone, portfolio manager at Federated Hermes, broke the renewed appetite for these stocks on Tuesday.
“People haven’t changed. We’re still social, we want to get out again and we will,” he said in the same interview. “Consumers are sitting on about $ 3 trillion in excess savings. … We anticipate that consumers here will be realigning much of their wallets away from their housewares and home spending back to experiences, and that includes restaurants and casinos and hotels and things like that. “