Green Mountain Coffee Roasters
Short Interest (as % of float): 38%
Average Analyst-Predicted Upside: 6%
At first glance, analyst upside of just 6% doesn’t necessarily scream “bullish” on the part of analysts. But around 75% of analysts covering the stock call Green Mountain Coffee Roasters (GMCR) a “buy” or “strong buy,” while Imperial Capital initiated coverage with an “outperform” rating just a few months back.
Chances are, analysts simply haven’t updated their price targets fast enough to keep up with GMCR’s run. Green Mountain has more than doubled in 2013 and has improved 200% in just 12 months.
Meanwhile, despite getting pounded time and time again, short sellers still are at it — the 31.4 million shares sold short as of Aug. 15 was a slight decrease from the month before, but still represents a whopping 38% of the float.
Those waiting for GMCR to finally cool off might be rewarded sooner than later. The K-Cup maker has frothed up to a price-to-earnings ratio of 23 times next year’s earnings, even though it’s only slated to grow profits at 15% annually for the next few years.