economy
March 12, 2026
Starbucks makes it into Josh Brown's Best Stocks list as turnaround gains steam
Josh Brown and Sean Russo take a look at the coffee giant and where it may go moving forward.
TL;DR
- Starbucks is highlighted as a potentially reliable investment, even in economic downturns.
- The stock has experienced significant underperformance over the past five years compared to the discretionary sector and S&P 500.
- Previous struggles included declining sales in China due to competition and issues in North America stemming from price hikes and a degraded in-store experience.
- Recent performance shows positive transaction and sales growth in the U.S. and internationally, with revenue reacceleration.
- The new CEO, Brian Niccol, is implementing a turnaround strategy focused on simplifying the menu, improving customer connection, and fixing operations.
- Technical indicators suggest a positive momentum, with the stock potentially rallying towards $120 if it breaks above the $100 resistance level.
- Key support levels for risk management are identified around $95 (50-day moving average) and $89 (200-day moving average).
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