Starbucks: Long-term recovery play + Short-term momentum opportunity
I believe that everyone is probably familiar with Starbucks, a blue chip US stock that might be the ideal COVID-19 recovery play for your portfolio.
The Starbucks brand is likely the undisputed No.1 coffee chain brand globally. Starbucks is the market leader in the retail coffee market ain’t because they produce the best coffee products in the world.
They are No.1 because they have established a strong brand equity that associates them as a “lifestyle brand” rather than a “coffee seller”. People enjoy going to a Starbucks outlet to “chill-out” with their friends. It has essentially become the 3rd home for most people. The first being your home, the second being the office and the third being a place to relax like Starbucks.
COVID-19 in a way has made this 3rd home a quintessential choice as people desire to get out of...