Coffee stocks are heating up.
Starbucks and Dunkin Brands hit new all-time highs Monday, both gaining more than 2 percent on the day as consumer-based stocks dominated the broad market rally. Starbucks and Dunkin have been on hyperdrive year to date, up a respective 36 and 32 percent. But according to one technician, the charts are showing one favorite: Starbucks.
Gordon noted that Starbucks has held up extremely well during broader market uncertainty. "If you look at the chart, you see that as the Nasdaq sold off in late June, Starbucks stock consolidated and maintained a firm bit," Gordon said. "We've since broken out of that range from June and I think we are going to the upper end of that channel," he said.