Coffee prices have been on a roller-coaster ride for over a year, and, at least for now, they are falling again. However, analysts warn that prices will begin to trend higher soon, due to the Brazilian crop falling short of expectations. Now, an earthquake off the coast of coffee-producing Sumatra has coffee lovers and investors holding their collective breath, wondering if bean prices will skyrocket again.
Will coffee stocks be sent into a tailspin? Probably some will. I decided to take a look at these companies to see which ones have been doing well over the long term, which is always the best indicator of how they will perform in the future. I found three that seem to be having no trouble percolating along, despite the travails of the java market.
The biggest star is, of course, Starbucks
Peet's Coffee & Tea
Though it looks as if coffee prices will decrease only temporarily, these companies stand to increase profits as long as they maintain any price increases that they implemented when bean prices were higher. Even if the recent earthquake disrupts the coffee market for a short time, these three companies have shown that they can make good over the long term, which is just the flavor that most investors enjoy most of all.
Have you ever wondered, while sipping that steaming cup of specialty joe, just which companies are currently poised to take the best advantage of emerging markets? If so, then take a look at this free report today!
Fool contributor Amanda Alix owns no shares in the companies mentioned above.
The Motley Fool owns shares of Starbucks. Motley Fool newsletter services have recommended buying shares of and writing covered calls on Starbucks. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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