Jim Cramer of CNBC recommended three restaurant stocks that investors can play on Monday as the U.S. Covid-19 infection rate rises.
Bob, founder of ExplosiveOptions.net, said he was bullish on stocks of Starbucks, McDonald’s and Yum Brands (parents of chains such as KFC, Pizza Hut and Taco Bell) if consumers began to get tired of eating out again, Kramer said.・ Supports chart analysis by Lang.
“Last week, some of the biggest restaurant names exploded, and the charts interpreted by Bob Lang suggest they have room to do,” said the host of “Mad Money.” .. “These strains are exactly what you want to own if a major resumption is hitting a failure caused by a delta variant.”
Although he believes that wide-ranging industry restrictions and closures are unlikely to be re-implemented, Kramer said the Delta epidemic, which is now mainstream in the United States, could undermine the outlook for many restaurants. Prophecy.
Lang, a colleague of Cramer at TheStreet.com, found a bullish trading pattern on all three stock picks.
Lang has a $ 270 price target for McDonald’s, according to Kramer. He also set high goals of $ 140 for each of Starbucks and Yum! Brands.
McDonald’s and Starbucks targets are expected to rise by about 11% from Monday’s closing price. The Yum! Brands target represents a profit of more than 13% from the closing price.
Starbucks, McDonald’s, and Yum! Brands have joined Chipotle and Domino on the list of eateries he considered “real guys.” These companies’ large investments in technology and digital orders show good signs both in the blockade environment and beyond, Cramer said.
“Restaurant stocks that do their best to generate new Covids are the same as those that are already doing well this season,” he said.
Kramer says three restaurant stocks could outperform as Covid’s concerns grow.
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