Green Mountain Appears to Have Plenty of Pep Left in its Step

by Sam Collins | September 4, 2013 1:53 am

Green Mountain Coffee Roasters (GMCR[1]) — Just when it looked like this stock was about to lose analysts’ attention, it reported its fifth consecutive quarterly earnings beat. This was coupled with being named to the Nasdaq 100 index while also being ranked No. 10 on Fortune Magazine’s list of “The 100 Fastest-Growing Companies.”

Revenue for fiscal Q3, ended in June, rose 11% from the prior year, and the company raised its full-year EPS guidance to $3.19-$3.24 from its previous guidance of $3.05-$3.15. 

Eight of the nine analysts who cover the stock raised their fiscal year (FY) 2013 estimates, and six of the nine raised FY 2014 estimates. Fortune reported the three-year average for revenue growth was 65%, profit growth was 95%, and total return was 45%.

GMCR is in a powerful bull trend with a recent breakout from a quadruple-top. However, MACD is overbought, and trading at 26 times FY 2013 earnings seems expensive for a food stock. GMCR will likely move higher, but try to buy it under $80 with a trading target of $95.

09 04 13 gmcr 300x189 Green Mountain Appears to Have Plenty of Pep Left in its Step
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chart key 300x84 Green Mountain Appears to Have Plenty of Pep Left in its Step[2]

Endnotes:
  1. GMCR: http://studio-5.financialcontent.com/investplace/quote?Symbol=GMCR
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

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