NEW YORK (TheStreet) -- A stock that has fallen from grace recently is Green Mountain Coffee Roasters (GMCR). At one time back in 2011 it was so highly valued that its price-to-earnings ratio soared to 116. The P/E is now only 9.87 at a time when the market's P/E is around 15.
When I can find a stock with double-digit earnings growth projections at a P/E less than the market's that warrants a look as a value investment possibility.
The stock price is very depressed. While the market as measured by the Value Line Index is up about 17% in the past year GMCR has plunged 76% for the same period as is shown in this graph provided by Barchart:
Let's not focus on how far Green Mountain Coffee Roasters has fallen but how much the stock price might recover. Green Mountain Coffee makes coffee and coffee supplies, selling primarily in North America. Its packaged coffee and coffee-making products are sold to retailers and used in homes and offices. It also markets under the Van Houtte, Brūlerie St. Denis, Brūlerie Mont-Royal and Orient Express brands, and its products are licensed under the Bigelow and Wolfgang Puck brands. The company was founded in 1981 and is based in Waterbury, Vt. Factors to consider: Barchart has a 40% technical sell signal as well as a Trend Spotter sell signal and both of these technical sell signals are beginning to weaken. At the present time the stock is below its 20-, 50- and 100-day moving averages and has fallen in price 28.72% in the past month as well as 75.94% in the past year. The Relative Strength Index is a weak 39.00% with a recent price of 22.14 which is way below its 50-day moving average of 25.29.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV