There is no need to dig deep to find pricing power in this market, two investors said.
With consumer price having seen their biggest annual spike in nearly four decades last month, the hunt for stocks that can withstand rising inflation is on – and one of the most popular names still a good bet, Craig Johnson of Piper Sandler tells CNBC’s “Trading Country” on Friday.
“I think Apple The company’s senior technical research analyst said it still looks very attractive.”
“We’ve seen prices go up more than 80 percent since 2007,” he said.
Shares of Apple rose more than 4,050% in that time frame. Shares closed nearly 3% higher on Friday at $179.45.
“I’m going to buy it down to 157,” Johnson said. “It’s extended a bit now, but going back to that September high, I’m an Apple buyer.”
Joule Financial Investment Director Quint Tatro said in the same interview it also appeared that another industry leader also had the power over its cost constraints.
“Starbucks not traditional staples, but they have great pricing power,” he said. Surely they will be able to push those input costs onto consumers. “
Tatro said that while some are concerned about the company’s high levels of debt, it also has $6 billion in cash.
“Starbucks is our game for sure to face these inflationary whirlwinds,” he said.
Disclosure: Joule Financial owns shares of Starbucks.
