5 Best Coffee Stocks to Invest In

2. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 61

Starbucks Corporation (NASDAQ:SBUX) ranks 2nd on the list of 10 best coffee stocks to invest in. The Washington-based multinational company operates coffeehouses and roastery reserves worldwide. Starbucks Corporation (NASDAQ:SBUX) is one of the best coffee stocks with over 32,938 retail locations in over 70 countries.

In May, Starbucks Corporation (NASDAQ:SBUX) partnered with clean energy provider Generate. Generate will provide solar energy to local Starbucks stores and up to 24,000 households. Shares of Starbucks Corporation (NASDAQ:SBUX) jumped 4% in the last three months.

On August 3rd, MKM Partners analyst Brett Levy raised Starbucks Corporation’s (NASDAQ:SBUX) price target to $132 per share from $125 per share and kept his Neutral rating on the stock. According to the analyst, Starbucks Corporation (NASDAQ:SBUX) continues to advance into its long-term agenda.

The company has a market cap of $141.93 billion and offers a dividend yield of 1.50%. Starbucks Corporation’s (NASDAQ:SBUX) fiscal third-quarter EPS was $1.01, beating consensus estimates of $0.77. Starbucks Corporation’s (NASDAQ:SBUX) revenue in the fiscal third quarter of 2021 was $7.5 billion, beating estimates of $7.24 billion.

By the end of the first quarter of 2021, 61 hedge funds out of the 866 tracked by Insider Monkey held stakes in Starbucks Corporation (NASDAQ:SBUX), worth roughly $4.44 billion. 

Wedgewood Partners mentioned Starbucks Corporation (NASDAQ:SBUX) in its Q1 2021 investor letter:

“Starbucks reported comparable store sales that grew +9% in the U.S. (and up +11% compared to 2019) and up substantially in China as the Company lapped the effects of the pandemic in the region. Starbucks’ financial strength continues to enable investment in store growth, alternative formats, drive-throughs, plus technology to drive higher throughput and further distance itself from smaller, fragmented local and regional competitors that have struggled over the past year. Starbucks has opened over 1000 net new stores over the past 12 months in its international market, primarily in China where it grew its footprint by a double-digit percentage, despite the various obstacles posed by the pandemic. Starbucks will continue to distance itself from competitors and will experience solid growth in the nascent Chinese market while optimizing its more mature U.S. market to drive productivity gains.”