Trade-Ideas: Green Mountain Coffee Roasters (GMCR) Is Today's Strong On High Relative Volume Stock
Trade-Ideas LLC identified Green Mountain Coffee Roasters (GMCR) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Green Mountain Coffee Roasters as such a stock due to the following factors:
- GMCR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $335.8 million.
- GMCR has traded 688,174 shares today.
- GMCR is trading at 2.47 times the normal volume for the stock at this time of day.
- GMCR is trading at a new high 3.00% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.EXCLUSIVE OFFER: Get the inside scoop on opportunities in GMCR with the Ticky from Trade-Ideas. See the FREE profile for GMCR NOW at Trade-IdeasMore details on GMCR: Green Mountain Coffee Roasters, Inc. engages in the specialty coffee and coffeemaker businesses in the United States and Canada. GMCR has a PE ratio of 26.4. Currently there are 10 analysts that rate Green Mountain Coffee Roasters a buy, 1 analyst rates it a sell, and 2 rate it a hold.The average volume for Green Mountain Coffee Roasters has been 4.1 million shares per day over the past 30 days. Green Mountain Coffee Roasters has a market cap of $10.3 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.37 and a short float of 34.4% with 6.42 days to cover. Shares are up 66.6% year to date as of the close of trading on Monday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Green Mountain Coffee Roasters as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.Highlights from the ratings report include:
- GREEN MTN COFFEE ROASTERS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GREEN MTN COFFEE ROASTERS increased its bottom line by earning $2.28 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($3.16 versus $2.28).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Food Products industry average. The net income increased by 42.3% when compared to the same quarter one year prior, rising from $93.03 million to $132.42 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 20.9%. Since the same quarter one year prior, revenues rose by 13.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GMCR's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.18, which illustrates the ability to avoid short-term cash problems.
- 46.83% is the gross profit margin for GREEN MTN COFFEE ROASTERS which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.17% is above that of the industry average.
- You can view the full Green Mountain Coffee Roasters Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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