Coffee is a brewed drink prepared from roasted coffee beans, the seeds of berries from certain Coffea species.
The genus Coffea is native to tropical Africa (specifically having its origin in Ethiopia and Sudan) and Madagascar, the Comoros, Mauritius, and Réunion in the Indian Ocean.
Coffee plants are now cultivated in over 70 countries, primarily in the equatorial regions of the Americas, Southeast Asia, India, and Africa. The two most commonly grown are C. arabica and C. robusta.
Once ripe, coffee berries are picked, processed, and dried.
Dried coffee seeds (referred to as “beans”) are roasted to varying degrees, depending on the desired flavor. Roasted beans are ground and then brewed with near-boiling water to produce the beverage known as coffee.
Coffee is darkly colored, bitter, slightly acidic and has a stimulating effect in humans, primarily due to its caffeine content.[medical citation needed] It is one of the most popular drinks in the world, and it can be prepared and presented in a variety of ways (e.g., espresso, French press, café latte).
It is usually served hot, although iced coffee is a popular alternative.
Clinical studies indicate that moderate coffee consumption is benign or mildly beneficial in healthy adults, with continuing research on whether long-term consumption lowers the risk of some diseases, although those long-term studies are of generally poor quality.
The word “coffee” entered the English language in 1582 via the Dutch koffie, borrowed from the Ottoman Turkish kahve, borrowed in turn from the Arabic qahwah.
The Arabic word qahwah was traditionally held to refer to a type of wine whose etymology is given by Arab lexicographers as deriving from the verb qahiya (قَهِيَ), “to lack hunger”, in reference to the drink’s reputation as an appetite suppressant.
It has also been proposed that the source may be the Proto-Central Semitic root q-h-h meaning “dark”
According to legend, ancestors of today’s Oromo people in a region of Kaffa in Ethiopia were believed to have been the first to recognize the energizing effect of the coffee plant, though no direct evidence has been found indicating where in Africa coffee grew or who among the native populations might have used it as a stimulant or even known about it, earlier than the 17th century.
The story of Kaldi, the 9th-century Ethiopian goatherd who discovered coffee when he noticed how excited his goats became after eating the beans from a coffee plant, did not appear in writing until 1671 and is probably apocryphal.
The earliest credible evidence of coffee-drinking or knowledge of the coffee tree appears in the middle of the 15th century in the accounts of Ahmed al-Ghaffar in Yemen.
It was here in Arabia that coffee seeds were first roasted and brewed, in a similar way to how it is now prepared. Coffee was used by Sufi circles to stay awake for their religious rituals.
Accounts differ on the origin of coffee (seeds) prior to its appearance in Yemen. One account credits Muhammad Ibn Sa’d for bringing the beverage to Aden from the African coast.
The Zacks Analyst Blog Highlights: HEICO, Group 1 Automotive, Rent-A-Center, Repligen and Strategic Education
For Immediate Release
Chicago, IL – June 4, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: HEICO Corp. HEI, Group 1 Automotive Inc. GPI, Rent-A-Center Inc. RCII, Repligen Corp. RGEN and Strategic Education Inc. STRA.
Here are highlights from Monday’s Analyst Blog:
U.S. Heading for Largest Economic Expansion: 5 Top Stocks
Finally, May's market mayhem is over. June 2019 promises to bring along fortunes as the United States is on the verge of completing the longest economic expansion. According to the National Bureau of Economic Research, the ongoing expansion started back in June 2009. The previous record of longest economic expansion was from March 1991 to March 2001.
Fundamentals of the U.S. economy remain strong with no nearby sign of recession. Despite the stock market rout in May, a closer look at the U.S. economy has a different story to tell, with enough reasons for further rally on Wall Street.
Stock Market Meltdown Likely Temporary
President Donald Trump’s tariff wars against China and Mexico brought back volatility in Wall Street, which otherwise sailing through impressively in the first four months on 2019. In May, the three major stock indexes -- the Dow, S&P 500 and Nasdaq Composite -- plunged 6.7%, 6.6% and 7.9%.
However, year-to-date, these indexes are still in the positive territory with gains of 6.4%, 9.8% and 12.3%, respectively. Notably, per Ben Carlson, director of institutional asset management at Ritholtz Wealth Management, a pullback of 5% or more in a month on the S&P 500 Index happened in 65 of the last 70 years. So, a sudden shock last month may well be the much-needed correction in stock markets.
U.S. Economy Remains Strong
For May 2019, the Conference Board's measure of consumer confidence index stands at 134.1 compared with 129.2 in April. May’s reading is near the 18-year high recorded in November 2018. This indicates that U.S. consumers are highly confident about future growth despite trade concerns.
On May 3, the Department of Labor reported that the U.S. economy added 263,000 jobs in April. Year to date, job gains are impressive at 205,000 on an average per month. Unemployment fell to 3.6% compared with the consensus estimate of 3.8%. This marks the lowest level of unemployment since December 1969.
The Philadelphia Fed manufacturing index came in at 16.6 in May, a massive gain from the reading of 8.5 in April. The index was the highest in four months in May. Notably, any reading above zero indicates improving conditions. The employment index grew to 18.2, the highest in five months. The prices index was at 17.5, the lowest in 17 months.
Fed Maintains Dovish Stance
The Federal Reserve has decided to keep the federal funds target rate unchanged in the range of 2.25-2.50% at least for the time being. The central bank also said that it will not downsize its $4 trillion balance sheet this year. Per the Fed, although U.S. economy is in solid footing, trade-related concerns may result in global economic slowdown which will reduce the growth rate of the U.S. economy.
Moreover, core PCE inflation index – Fed’s favorite inflation gauge – increased 1.6% in April, well below the central bank’s target rate of 2%. Muted inflation and the likelihood of a reduction of U.S. economic growth may compel Fed to reduce interest rate, much to the delight of President Trump. The Trump administration is constantly blaming the central bank for its aggressive monetary stance as the major hindrance of economic growth.
CTO at API Fortress, Simone Pezzano comments:
Our Top Picks
At this stage, it will be prudent to invest in stock with strong growth potential and a favorable Zacks Rank. We have narrowed down our search to five such stocks with a Growth Score of A and Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Each of these stocks has moved higher in the last three months and still has upside left.
HEICO Corp. designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The company has expected earnings growth of 22.7% for the current year. The Zacks Consensus Estimate for the current year has improved by 3.7% over the last 30 days. The stock has surged 30.6% in the past three months.
Group 1 Automotive Inc. is a leading operator in the automotive retailing industry. It has expanded to become the third largest dealership group in the United States. The company has expected earnings growth of 13.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 4.5% over the last 30 days. The stock has surged 15.7% in the past three months.
Rent-A-Center Inc. leases household durable goods to customers on a rent-to-own basis. It operates through four segments: Core U.S., Acceptance Now, Mexico and Franchising. The company has expected earnings growth of 100% for the current year. The Zacks Consensus Estimate for the current year has improved by 11% over the last 30 days. The stock has surged 24.6% in the past three months.
Repligen Corp. develops, manufactures, and sells products used to enhance the interconnected phases of the biological drug manufacturing process in North America, Europe, APAC and internationally. The company has expected earnings growth of 28.8% for the current year. The Zacks Consensus Estimate for the current year has improved by 10.6% over the last 30 days. The stock has surged 17.4% in the past three months.
Strategic Education Inc. provides a range of post-secondary education and non-degree programs in the United States. It operates through three segments: Strayer University, Capella University and Non-Degree Programs. The company has expected earnings growth of 36.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 7.1% over the last 30 days. The stock has surged 23.8% in the past three months.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Heico Corporation (HEI) : Free Stock Analysis Report Rent-A-Center, Inc. (RCII) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report Strategic Education Inc. (STRA) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research