Coffee Stock Jitters? Consider These 9 Alternatives
By Stocks & Shares:Starbucks (SBUX) is a widely-known cultural phenomenon. Most investors know its products, clientele, and public image. The recent move by Starbucks to sell capsules for the Keurig single-serving coffee makers has spooked Green Mountain Coffee Roasters (GMCR) investors. Should investors flock to either of these two coffee companies based on their familiarity with coffee products and news stories?No, investors should not let familiarity or news control their decisions. Don't get me wrong, I love Starbucks products. But as simple as it sounds, you are better off shopping around for better valuations instead of focusing on popular newsmakers. There are many stocks which offer comparable growth prospects. Moreover, many of them are trading at lower price multiples.Ultimately, a stock's earnings and future cash flows determine its value. The future financial potential of a stock can be gauged by using financial metrics to determine how cheaply a stock is priced,Complete Story »
- Original article
- Login or register to post comments

