Coffee Stocks Continue To Steam

It would seem to be the case that, no matter how bad the economy gets, no matter how much the majority of U.S. companies struggling, coffee stocks will continue to do well. Apparently, the toughest of times won't keep American away from their cup of Joe. Take Green Mountain Coffee Roasters

. The company, whose products include single-origin, estate, certified organic, Fair Trade, signature blends, and flavored coffees sold under the Green Mountain Coffee Roasters brand, hit a 52-week high this week, up 0.82 percent to $110.86. Even Jim Cramer has noticed Green Mountain's continuing success, although he is also treading carefully, saying that, “GMCR's rising earnings estimates are impressive, however, we get scared when we look at the price tag.” Another couple of companies hot on Cramer radio are Starbucks

and Peet's Coffee & Tea

. Cramer says of PEET, “Earnings per share is $1.54, and its price to earnings ratio is still high at 34.23 but much more reasonable than GMCR. PEET's quarterly revenue growth is much slower at 12.2 percent. Its gross margin is 21.19 percent, and return on equity is 12.45 percent.” Starbucks, meanwhile, continues to be adored both here and abroad. Most investors seem to prefer to stick with the tried and tested. Cramer thinks that it “makes the cut for conservative long-term investors looking to diversify in this industry and sector.”

warned on Wednesday that it can “stunt your portfolio's growth” to hold too many shares of Coffee Holding

due to the fact that JVA relies on Green Mountain for approximately half its revenue. Motley Fool agrees with Cramer that PEET and certainly SBUX are safer buys. Regardless, it's impossible not to be impressed with the relatively stable ground (or grounds – couldn't resist) that coffee is sitting on.