Trade-Ideas: Green Mountain Coffee Roasters (GMCR) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Green Mountain Coffee Roasters ( GMCR) as a post-market leader 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 $333.6 million.
  • GMCR is up 2.4% today from today's close.

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More details on GMCR:

Green Mountain Coffee Roasters, Inc. is engaged in the specialty coffee and coffeemaker businesses in the United States and Canada. The company operates through two segments, Domestic and Canada. The stock currently has a dividend yield of 0.9%. GMCR has a PE ratio of 31.8. Currently there are 8 analysts that rate Green Mountain Coffee Roasters a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Green Mountain Coffee Roasters has been 4.0 million shares per day over the past 30 days. Green Mountain Coffee Roasters has a market cap of $15.9 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.30 and a short float of 10.8% with 7.41 days to cover. Shares are up 41.8% year-to-date as of the close of trading on Friday.

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 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. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • GMCR's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GMCR has a quick ratio of 1.63, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market, GREEN MTN COFFEE ROASTERS's return on equity exceeds that of both the industry average and the S&P 500.
  • GREEN MTN COFFEE ROASTERS has improved earnings per share by 30.0% 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 $3.16 versus $2.28 in the prior year. This year, the market expects an improvement in earnings ($3.66 versus $3.16).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Food Products industry average. The net income increased by 28.5% when compared to the same quarter one year prior, rising from $107.58 million to $138.23 million.

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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