Despite navigating through turbulent waters, the U.S. economy displays unwavering strength. Lingering concerns of a looming recession have dissipated with two back-to-back quarters of stellar GDP growth surpassing 3%. Consumer stocks stand tall, buoyed by soaring household net worth and robust personal income upticks. Looking forward, the Fed’s prudent measures bolster optimism in the trajectory of the U.S. economy. With an aura of resilience, investing in companies hitting their 52-week lows presents a golden opportunity for sustained growth in the future. Snap up these retirement stocks now before they rebound, or risk missing out on a bargain.
Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) stands as a global powerhouse in coffee, operating across 86 countries. Priced at $90.71, Starbucks has witnessed an awe-inspiring growth of $17.75 over the past 5 years.
Reporting a staggering $35.98 billion in revenue for the end of the fiscal year 2023, Starbucks showcases a remarkable 11.55% year-over-year surge from the year prior. Notably, net incomes hit $4.12 billion, with diluted EPS reaching $3.58, exhibiting robust growth figures of 25.69% and 26.50% respectively. Outshining an average market levered FCF margin of 5.6%, Starbucks boasts an impressive 11.7%.
Starbucks continues to execute its strategy of offering premium coffee, channeling investments into services that justify the brand’s premium image. This deliberate move is poised to substantially hike Starbucks’s revenues and profits, fueling expansion endeavors. Despite the promising outlook, the stock lingers at a 52-week low, hinting at undervaluation. Armed with exceptional brand visibility, resource optimization, and enticing valuation, Starbucks emerges as a winning choice among retirement stocks.
Brown-Forman (BF-A, BF-B)
Brown-Forman (NYSE:BF-A, NYSA:BF-B) occupies a prominent position in the realm of alcoholic beverages, renowned for brands like Jack Daniel’s and Woodford Reserve. The company engages in the sale of used barrels, bulk wine and whiskey, along with offering contract bottling services, serving consumers, retailers, and local governments directly.
Presently, Brown-Forman’s earnings face headwinds amidst market recalibration post the unsustainable surge in alcohol demand during Covid-19. Elevated input costs, coupled with this demand spike, have tempered revenue projections. A cohort of 17 Yahoo! Finance analysts anticipates an average growth rate of 14.6%. In the last quarter, the brand witnessed a striking 185% year-over-year surge, supported by a commendable profit margin of 22.65% and EBITDA hitting $1.29 billion.
The consumption of conventional, lower-end whiskey is tapering off, prompting the brand to unveil upscale offerings like Jack Daniel’s Single Barrel Barrel Proof and Jack Daniel’s 12-Year-Old Tennessee Whiskey. Moreover, a collaborative effort with Coca-Cola (NYSE:KO) targets capturing the interest of younger demographics.
With 21 hedge funds embedding trust in Brown-Forman stock, amounting to a value surpassing $1.03 billion, and institutions holding 54.32%, the inescapable confidence in the brand signals why Brown-Forman shines as a top choice among retirement stocks.