5 Best Depressed Stocks To Buy in 2024

2. Starbucks Corp. (NASDAQ:SBUX)

Number of Hedge Fund Investors: 59

Wells Fargo recently reiterated an Overweight rating on Wells Fargo with a $105 price target, as Starbucks Corp. (NASDAQ:SBUX) expects menu innovation, higher prices, along with some other factors, to boost the stock in the second half of 2024.

A total of 59 funds tracked by Insider Monkey had stakes in the coffee giant Starbucks Corp. (NASDAQ:SBUX) as of the end of 2023.

RiverPark Advisors made the following comment about Starbucks Corporation (NASDAQ:SBUX) in its Q3 2023 investor letter:

“Starbucks Corporation (NASDAQ:SBUX): SBUX is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 83 markets. Through its more than 36,000 global stores (roughly 50% operated and 50% licensed) the company offers handcrafted coffee, tea and other beverages and a variety of food items. SBUX also sells a variety of packaged coffee and tea products and licenses its trademarks through other channels such as grocery and foodservice through a Global Coffee Alliance with Nestlé. In addition to its flagship Starbucks Coffee brand, the company sells goods and services under the brands Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve and Princi.

SBUX’s recently appointed CEO (March 2023), Narasimhan Laxman, reiterated the company’s long-term plans for 10-12% revenue growth and 15-20% EPS growth while reporting fiscal 3Q23 earnings. Revenue will be driven by a combination of factors including unit growth, higher food “attach” rates (more food sold per cup of coffee), equipment innovation to speed throughput, and delivery expansion. In addition to the leverage of higher revenue across the company’s fixed asset base, SBUX sees margin expansion from supply chain management opportunities and procurement efficiencies. We initiated a small position in August.”