2 Stocks With Upgrades: Green Mountain Coffee Roasters, Pharmacyclics

NEW YORK (TheStreet) -- Green Mountain Coffee Roasters(GMCR) and Pharmacyclics(PCYC) were upgraded to buy by TheStreet Ratings on Monday.

Both stocks have risen more than 40% year to date.

Green Mountain Coffee Roasters

The coffee company reported on Feb. 1 first-quarter earnings of $104.4 million, or 66 cents a share, which rose from $2.4 million, or 2 cents a share a year ago.

Green Mountain's stock was one of the "winners" in David Einhorn's Greenlight Capital's fund's short portfolio in the fourth quarter.

Green Mountain was upgraded to a buy from hold by TheStreet Ratings on Monday.

"The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, impressive record of earnings per share growth and compelling growth in net income," TheStreet Ratings wrote. "We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

Shares of Green Mountain Coffee Roasters hit a 52-week high on Sept. 20 of $115.98. The stock's 52-week low of $34.06 was set on Nov. 11.

Green Mountain has an estimated price-to-earnings ratio for next year of 17.27; the average among food product companies is 13.65. For comparison, Kellogg(K) and H.J. Heinz(HNZ) both have forward P/Es of 13.31 and 14.4, respectively.

Of the 14 analysts who cover the stock, nine rated it buy. Three analysts gave Green Mountain a hold rating and two rated it sell.

"In our opinion, on a fundamental basis Green Mountain Coffee Roasters is one of the most compelling companies within the consumer sector," Williams Capital Group analysts wrote in a Feb. 9 report. "This is a very important Consumer Staples name to investors who place a premium on growth and a long-term track record of success. The company has established and growing brands with a solid base of loyal customers."

TheStreet Ratings gives Green Mountain a B- grade and $84.33 price target. Shares of Green Mountain closed Friday at $62.85; the stock has risen 40.13% year to date.