On CNBC’s "Trading Nation," Quint Tatro of Joule Financial said Starbucks Corporation (NASDAQ:SBUX) is the stock with "massive pricing power," despite not being a traditional staple stock.
The company will be able to boost its sales and pass on rising costs to customers, Tatro commented. From a valuation standpoint, the Seattle, Washington-based company also has $6 billion in cash.
The Labor Department, on Friday, reported a 6.8% year-over-year increase in the consumer price index for the month of November, the fastest inflation growth since June 1982, which also exceeded market estimates of 6.7%. The CPI was up 0.8% on a monthly basis. Core inflation, which excludes volatile food and energy prices, was up 4.9% in November, in-line with analysts’ estimates.
Price Action: Starbucks shares gained 1.2% to close at $116.73 on Friday, adding another 0.1% in after-hours trading.
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