Bull's Eye Report: Green Mountain Coffee Roasters (GMCR)

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Why We Like The Stock:

Green Mountain Coffee Roasters (GMCR) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. This past week has not been kind to stocks, and many positive technical set-ups have been wiped out since last Wednesday’s FOMC announcement. However, staples stocks in the packaged foods and meats space have held up extremely well, as evidenced by J.M. Smucker (SJM), McCormick & Co. (MKC), Dean Foods (DF), and GMCR. GMCR is up quite a bit this year, but that does not make it any less attractive in the short term. The stock has been trending higher since November of 2012, and recently hit highs of $81.78 last week. GMCR has been operating well above its 50-day moving average for nearly 8 months, which is a very positive sign. We like the trend, we like the way its held up recently, and we like the short-term potential. We would be buyers of GMCR at current prices.

We Would Be Buyers:

At the current price (~$73.84).

Company Profile:

Green Mountain Coffee Roasters, Inc. is engaged in the specialty coffee and coffee maker businesses. The company roasts Arabica bean coffees, including single-origin, fair trade certified, certified organic, flavored, limited edition and blends offered in K-Cup portion packs, whole bean and ground coffee selections, as well as other specialty beverages, including tea, hot apple cider and hot cocoa also offered in K-Cup portion packs. The company operates in three segments: the specialty coffee business unit, the Keurig business unit and the Canadian business unit.

Stock Rating: 9.4

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.