Starbucks may be poised to brew up some serious gains

Controversies about its choice of holiday cups notwithstanding, Starbucks' stock is hot.

Shares of the coffee giant have surged nearly 60 percent this year, making it the third best performing stock in the S&P 500 Index, trailing tech titans Netflix and Amazon. The stock is now trading roughly 3 percent below its recent all-time high of $64 hit in late October. Now, one trader is betting it's about to heat back up in the coming weeks.

"This is a strong stock in one of the strongest sectors of 2015," Todd Gordon said Friday on CNBC's "Trading Nation."

The consumer discretionary sector, in which Starbucks falls, is the best performer in the S&P 500 by a landslide. The sector is up more than 12 percent, while the broader index is up just 1 percent.

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For Gordon, the recent pullback in the stock from its high presents the perfect opportunity for investors to get in on the stock's epic run. "Former resistance at $60 is now serving as support," said the founder of TradingAnalysis.com and CNBC Contributor. "I expect the uptrend to continue."

Gordon, who has been hot on the Starbucks trade all year, expects to see a new high in the stock before the end of the year. He's targeting a move up to $65, that's a 5 percent rally in the stock over the next couple of weeks.

Wall Street appears to be just as hyped on Starbucks as Gordon. According to FactSet, of the 29 analysts that cover the stock the average rating is a buy, with a price target of $67.57.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

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