2011 Top S&P Stocks: No. 21 Starbucks
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Starbucks stock perked up nearly 37 percent in 2011 year to date, making it the No. 21 top stock in the S&P 500.
“Their traffic numbers continue to get better and better. Thep actually have growth, not just in the U.S. but internationally,” said trader Pete Najarian. “The just seem to be doing everything right.”
Starbucks entered December near its 52-week high of $44.69; its low was $30.75. In midday trading, it was priced just under $44 per share.
Najarian noted that the coffee retailer recently moved into the juice market with a recent acquisition and that its store prices, which increased along with a temporary coffee spike, have not come back down, leading to a greater profit margin.
“We might have a little bit of a pullback,” said J.J. Kinahan, chief derivatives strategist for TD Ameritrade. “It’s had an incredible run since October.”
(Related: See More 2011 Top S&P 500 Stocks)
January $41 puts are selling for $1, he added.
Trader Steve Grasso was bullish, predicting it would top $44.70.
“Stocks that are up around their 52-week high have been making new 52-week highs,” he said.
______________________________________________________ Steve Grasso Stuart Frankel & Co. and its partners own CUBA Stuart Frankel & Co. and its partners own GERN Stuart Frankel & Co. and its partners own GM Stuart Frankel & Co. and its partners own HPQ Stuart Frankel & Co. and its partners own HSP Stuart Frankel & Co. and its partners own HSPO Stuart Frankel & Co. and its partners own JPM Stuart Frankel & Co. and its partners own MET Stuart Frankel & Co. and its partners own MSFT Stuart Frankel & Co. and its partners own MU Stuart Frankel & Co. and its partners own NYX Stuart Frankel & Co. and its partners own PRST Stuart Frankel & Co. and its partners own RDC Stuart Frankel & Co. and its partners own UAL Stuart Frankel & Co. and its partners own WFT Stuart Frankel & Co. and its partners own XRX Colin Gillis Vic Alboini Rich Ilczysyn Ilczyszyn is long Oil Ilczyszyn is long Euro Fadel Gheit George Davis Catherine Arnold The analyst(s) responsible for preparing this research report received compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities.
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Trader disclosure: On Dec. 2, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Najarian is long AAPL; Najarian is long C; Najarian is long JPM calls; Najarian is long WFC calls; Najarian is long INTC; Najarian is long YHOO; Najarian is long PFE; Najarian is long TEVA; Brown is long VOD; Brown is long SBUX; Kinahan is long Cq long GS through options; Grasso owns AKS; Grasso owns AMR; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU;
Stuart Frankel & Co. and its partners own CSCO
RESEARCH IN MOTION (RIMM): Investment banking (next 3 months): BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from all of the companies referenced within this report.
Alboini and a group of shareholders own 10% of RIMM shares
Ilczyszyn is long gold
VALERO (VLO): Oppenheimer & Co. Inc. expects to receive or intends to seek compensation for investment banking services in the next 3 months from VLO.
RBC is a market maker in European currencies
PFIZER (PFE): I, Catherine J. Arnold, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.
