Peet's Coffee & Tea
Today, we're going to take a look at Pete's Coffee and Tea (PEET), the subject of today's Base Reader column on page B5. The column noted that Peet's could be setting itself up for another buying opportunity. Coffee-related stocks have performed well recently. One of the big leaders of the recent rally has beenGreen Mountain Coffee Roasters (GMCR). Micro-capsDiedrich Coffee (DDRX). and Caribou Coffee (CBOU) have also been strong price performers.
- Peet's owns a Composite Rating of 97, an indication of good fundamentals and solid price performance in the market.
- In late April, Peet's reported a 53% rise in quarterly profit, topping estimates by nearly 30%. It was the second straight quarter of accelerating profit growth
- Full-year profit is seen rising 24% in 2009 and 15% in 2010.
- Annual return on equity is on the light side at 7.7%. Studies of past market winners showed an average ROE of 17% before a major price gain.
- Peet's is a small-cap stock with a market cap of just $335 million. It's also thinly traded stock with an average daily volume of just under 150,000 shares.
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