When Starbucks (SBUX) lured Chipotle (CMG) CEO Brian Niccol to lead the firm, CMG stock price fell. Although shares clawed back, the stock is well off its 52-week high of $69.26.
Markets are overreacting to the leadership change. Starbucks is paying up to $113 million to Niccol. Despite the world bringing the return to work, Niccol will work remotely from California.
Chipotle’s prospects for attracting customers have not changed. Consider this stock at current prices.
In the energy sector, Vistra (VST) stock peaked at $107.24. It closed below $79.35, after attracting buyers below $70.00. In Q2, Vistra posted revenue growing by 20.7% Y/Y to $3.85 billion. Unfortunately, the firm did not post earnings per share figures. Its adjusted EBITDA results and outlook will only confuse potential investors.
The Hershey Company (HSY) pulled back from $200 recently. Investors are worried that Mars purchasing Kellanova (K) would increase competition. The combination of Mars and Kellanova in snack bars pressures Hershey’s profitability. Investors may buy HSY stock on the pullback.
Other attractive investments in the food space include Mondelez (MDLZ). Although MDLZ stock is not on sale, the firm is consistently profitable. Tyson Foods (TSN) trades at an attractive valuation. The stock is outperforming Mondelez and Hershey in the last year.
Related Stories
