Coffee Stock #4 – Peet’s Coffee & Tea Inc. (PEET)
Northern California-based Peet’s Coffee & Tea Inc. (PEET) is a different flavor of coffee stock, really cashing in on premium herbal tea offerings and specialty foods as well as providing a great cup of java.
Jellies, jams, candies and pastries are just part of PEET’s diverse product line. This has helped the company find a broader customer base, appealing to those with a sweet tooth as well as caffeine junkies and iced tea fanatics.
The results are clear in Peet’s bottom line. The company has topped estimates in all four of the last quarters, with an average earnings surprise of about 16%. Thanks to tighter cost controls and higher sales at its specialty business, I expect this trend to continue. Margins are rapidly expanding, showing that PEET is still running a tight ship despite its past successes.
I rate Peet’s a B, or buy.
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Article printed from InvestorPlace Media, http://investorplace.com/2009/07/top-stocks-coffee-stocks/.
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