Hightower Advisors' Stephanie Link said she would continue to add to her Starbucks Corp (NASDAQ:SBUX) position following the company's strong earnings report last month, and she did just that on Tuesday.
What To Know: Starbucks shares have largely trended lower since the start of the year, but the stock popped on the company's quarterly results at the beginning of May. Since then, the stock has given up its gains and returned to levels where Link started buying.
The only part of the company's business that needs to be turned around is its China business, Link said Tuesday on CNBC's "Fast Money Halftime Report."
She believes that Starbucks' international business will sort itself out when China is able to fully reopen following prolonged COVID-19 lockdowns, and Link isn't concerned about the rest of the world.
"The U.S. continues to hum along," she said.
So there is not much that needs to be fixed and yet the company freed up $20 billion that can be used to invest in its businesses, Link said: "In food, in people and places."
She noted that Starbucks has an analyst day in September, which she said should be another stock catalyst.
Ultimately, Link said she expects Starbucks to grow earnings between 8% and 10% and return to 17% operating margins.
"So it's another quality name that I think is on sale," Link said.
See Also: This Stock Has Fallen 35% YTD And Is Now 'The Definition Of Quality On Sale'
SBUX Price Action: Starbucks has traded between $126.32 and $68.39 over a 52-week period.
The stock was up 1.27% at $72.78 Tuesday afternoon, according to data from Benzinga Pro.
Photo: Engin Akyurt from Pixabay.
