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Best Coffee Stocks 2012 - Stocks to Buy - Coffee
Stocks - Starbucks Corp. (SBUX)
- My top coffee stock pick in 2012 is Starbucks (SBUX). I like this stock because they continue to grow and raise prices which
help margins. Sales of Starbucks VIA Ready Brew are also surging. At first I was surprised as I am not generally
a fan of Starbucks coffee unless it comes in 500+ calorie Latte or Frappacino form. However, I recently received a VIA travel
mug as a Christmas gift along with Columbian, Vanilla, and Mocha flavors of the intriguing little packets. To my surprise,
the “instant” coffee was actually really good. The flavors (Vanilla and Mocha) were great and came slightly sweetened,
so no cream and sugar were needed. I also stopped buying Green Mountain Coffee K-Cups because they were getting
very expensive. Will VIA sales out number single cup Keurig sales? It’s hard to say. Keurig which is
owned by Green Mountain Coffee (GMCR) has gathered a pretty large faithful following over the past few years and rightfully
so, because the coffee is wonderful. However, VIA, being attached to the “Starbucks” brand, is a pleasant
addition to the already multi-billion dollar company ($35 billion to be exact). So my best coffee stock pick in 2012
is Starbucks (SBUX) and I have a $55 price target which is another 20% gain from here. Any pullback in 2012 is
a buy.
#2 Top Coffee Stock to Buy - Coffee
Stocks - Caribou Coffee (CBOU) - My 2nd Coffee
Stock Pick for 2012 is Caribou Coffee (CBOU) . The stock surged 30% in 2011. This company not only sells coffee for the
Keurig, but it is the second largest company-owned coffeehouse operator in the U.S. While K-Cup sales from Keurig are
not a money-maker for the company, as they are not licensed to package the cups, Green Mountain coffee, in turn for the Caribou
names, is a free advertising source for Caribou through its catalog and Caribou K- Cup shelf space in grocery stores.
Caribou should continue to see strong growth in coffee sales in 2012 and I rate the stock a buy.
#3 Top Coffee Stock Pick 2012 - Coffee Stocks
- Green Mountain Coffee (GMCR) - My 3rd best
coffee stock in 2012 is Green Mountain Coffee (GMCR). Despite a huge drop in stock price during the 2nd half
of 2011, GMCR stock ended up 24% in 2011. Green Mountain has some patents expiring in 2012 but I think the stock is
fairly priced here around $43. I myself stopped buying K-Cups because they were getting to expensive. I also started
noticing coupons popping up everywhere for the first time. This is never a good sign. I feel the best days are
behind this company but give the stock a $55 price target in 2012.
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