Hightower Advisors’ Stephanie Link believes we are still in the midst of a bull market. Accordingly, she has identified a couple of stocks well off their highs that she would like to buy on any further weakness.
Starbucks Corp (NASDAQ:SBUX) is one of the names on her watchlist, Link said Monday on CNBC’s “Power Lunch.”
Starbucks has strong U.S. sales, but the company is facing challenges internationally stemming from rising COVID-19 cases in China, the Russia-Ukraine conflict and supply chain headwinds, Link said.
However, she’s confident that Starbucks CEO Howard Schultz will be able to navigate said challenges.
“He has a tough job ahead of him, but it’s Howard Schultz,” Link emphasized. With the stock down more than 35% year-to-date, Starbucks shares are starting to look appealing, she added.
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Link is also watching animal health company Zoetis Inc (NYSE:ZTS) closely, she said. Animal health care is a $42 billion market growing between 10% and 15% per year, she said.
“These guys, Zoetis, they actually have the product differentiation, they have technology that they’re implementing, a great balance sheet, they’re buying back stock. They’re doing all the right things. Only problem … is it is expensive,” Link said.
Zoetis is trading around 34 times forward earnings, according to data from Benzinga Pro. The stock is down nearly 30% this year. If it were to pull back more, Link said she’s ready to pull the trigger and buy.
SBUX, ZTS Price Action: At time of publication, Starbucks was down 0.88% at $73.98 and Zoetis was down 2.6% at $172.65.
Photo: sahinsezerdincer from Pixabay.
