Experts have their eyes on two of these stocks in particular and say both could continue to surge higher.
Stocks surged higher this week on optimism that the Fed may cut interest rates at their next meeting and a possible trade deal between the U.S. and China.
The S&P closed Thursday with a new record high at 2,954.18, while the Nasdaq gained just under 1% and the Dow climbed nearly 250 points.
And with the market hitting records, a handful of the Street’s “coolest” stocks are heating up as well. Snap (NYSE: SNAP), Canada Goose (NYSE: GOOS), Starbucks (NYSE: SBUX), Grubhub (NYSE: GRUB) are all up by double-digits so far in June.
Canada Goose is up 13% so far this month, Grubhub is up nearly 14% this month, Starbucks is up almost 11% in this month, and Snap is up 27% since the beginning of June. But with these stocks soaring higher, what’s the best way to trade them now?
Todd Gordon of TradingAnalysis.com likes Starbucks’ stock now, “Starbucks is actually the largest holding in my portfolio now, and I need to rebalance a little lower just because it has had such an amazing run here.”
Gordon went on to look at Starbucks’ chart and believes there may be a breakout in the near term.
“It looks eerily similar to a breakout,” Gordon noted. “This is what we might be looking for in Netflix, but Starbucks has made the move just an amazing push up, it’s got a decent yield. I really like the chart.”
Looking at Starbucks’ daily chart, Gordon pointed to the tight trading range the stock has been trading in recently and noted that “we have not yet intersected resistance right here, just about the $90 – $95 region. So I’m going to continue to hold and collect that dividend. … I like the chart and I like the company.”
Mark Tepper of Strategic Wealth Partners has his eye on Grubhub.
“Consumer behaviors are changing, they’re changing quickly,” Tepper said. “Millennials are becoming a bigger and bigger part of this economy, so you really have to pay attention [to] all of their behaviors and spending habits and play those trends. I think it’s pretty clear that Millennials want instant gratification and they want a friction-less experience.”
Tepper said that this generation values time as much as they value price, and that when consumers are settling in for Netflix-and-chill, and they want food, they order delivery through Grubhub.
“That’s we love this stock,” Tepper said. “This is your typical growth at a reasonable price stock. Their restaurant network continues to grow. In the 50 largest cities they work with, that’s up 23% year-over-year. And then they’ve also got ability to expand into tier-two and tier-three locations.”
Tepper also pointed out that Grubhub has begun really ramping up its advertising presence. “Right now, they’re spending 5 times as much money on commercials as they did a year ago, and you’re also seeing Google searches skyrocketing as a result of that. So advertising is working to help them bring on new diners.”
“What you have here is a stock that was punished, but now they’ve shown they can actually execute,” Tepper said. “I think there’s 50% upside here over the next year.”