Why Stephanie Link Is Watching Starbucks And This Stock Down Nearly 30% YTD

Hightower Advisors' Stephanie Link believes we are still in the midst of a bull market. Accordingly, she has identified a couple of stocks well off their highs that she would like to buy on any further weakness. 

Starbucks Corp SBUX is one of the names on her watchlist, Link said Monday on CNBC's "Power Lunch."

Starbucks has strong U.S. sales, but the company is facing challenges internationally stemming from rising COVID-19 cases in China, the Russia-Ukraine conflict and supply chain headwinds, Link said. 

However, she's confident that Starbucks CEO Howard Schultz will be able to navigate said challenges.

"He has a tough job ahead of him, but it's Howard Schultz," Link emphasized. With the stock down more than 35% year-to-date, Starbucks shares are starting to look appealing, she added. 

From Last Week: Why This Starbucks Analyst Says Stock Valuation Is At 'Historical Low'

Link is also watching animal health company Zoetis Inc ZTS closely, she said. Animal health care is a $42 billion market growing between 10% and 15% per year, she said. 

"These guys, Zoetis, they actually have the product differentiation, they have technology that they're implementing, a great balance sheet, they're buying back stock. They're doing all the right things. Only problem ... is it is expensive," Link said. 

Zoetis is trading around 34 times forward earnings, according to data from Benzinga Pro. The stock is down nearly 30% this year. If it were to pull back more, Link said she's ready to pull the trigger and buy.

SBUX, ZTS Price Action: At time of publication, Starbucks was down 0.88% at $73.98 and Zoetis was down 2.6% at $172.65.

Photo: sahinsezerdincer from Pixabay.