“Keurig Green Mountain, Inc. (GMCR) is a producer and seller most well known for its single-serve Coffee, Tea, and Hot Cocoa beverage products. Keurig Green Mountain distributes these offerings as well as larger coffee bean products and other specialty beverage items both wholesale to retailers and directly to consumers via its website. GMCR at the time of this post (11:30AM CST) is currently trading at 155.15, down 1.26% on the day. GMCR is still well within the upper area of its 52 week range of 60.65-158.87, coming off of fresh highs for the year that printed during yesterday’s session. The company is set to report its third quarter earnings today after the closing bell.
GMCR has traded with mixed to bullish reactions following the last two years of earnings reports, moving higher on 5 out of 8 of these sessions. The average historical move post-EPS through this period has been 14.9%, although it is noteworthy that the average move with a positive reaction has been a much higher 21.68%, with smaller relative changes in the stock price following the three negative earnings reactions. The options market is currently pricing in a relatively moderate move of 13.10 in GMCR, which would represent just an 8.45% change in the underlying stock. As the stock is currently trading extremely well, just off its freshly made 52 week highs and above the upward sloping Ichimoku Cloud and all relevant moving averages, I am bullish this name and looking to put on a long position into the earnings release this afternoon.”
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