Brit's Buys: Eat, Drink & Shop
12/29/2016 7:00 am EST
In his The Wealth Advisory newsletter, Briton Ryle maintains a portfolio of growth and income standouts. Here, he reviews three recommendations in various grocery, coffee and restaurant markets.
Even though we have gains of about 185% in Starbucks (SBUX), I will probably always rate Starbucks a “buy” because its execution is so good.
There’s more money on SBUX gift cards than there is on deposit at some publicly traded banks (more than a billion dollars).
After going on a tear last year, we’ve been in correction mode for the last 12 months, but that’s starting to turn around.
The stock is sitting about $5 shy of the all-time highs it set last October, and I wouldn’t be at all surprised to see it push right past those in early 2017.
This is a stock all investors should own. I’m keeping the limit at $60, but it would be tough to go wrong buying this coffee roaster at any price. The 12-month price target of $85 remains unchanged.
It’s been tough going for the grocery store sector, and Whole Foods (WFM) hasn’t been immune to the trends. The stock is finally recovering, though, as investors bet on increased consumer spending in the near future.
Investors are also starting to see how cheap WFM stock looks compared to historical levels and its enterprise value and pushing shares higher.
The new 365 markets are testing well with the millennial generation and should add a boost to revenue that will translate into even higher stock prices.
I’m keeping the buy limit at $33, so look for dips to add to your position or start a new one. The 12-month target remains at $47.50.
Zoe’s Kitchen (ZOES) — which develops and operates a chain of fast-casual restaurants — is still a relatively overlooked stock, but that’s starting to change.
Brown Capital just upped its stake by over 50%. As the chain continues its expansion into the big East Coast markets of Boston and New York (not to mention Chicago and California), we’ll see big revenues roll in along with lots of new investor interest.
I am sticking with my strong buy rating with a limit entry price of $30 a share. My 12-month price target is increasing to $60. This is another must-own stock.