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 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.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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