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Post by T Bhat on Apr 10, 2015 23:04:12 GMT -5
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Post by T Bhat on Apr 10, 2015 22:34:25 GMT -5
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Post by T Bhat on Mar 29, 2015 22:15:32 GMT -5
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Post by T Bhat on Mar 29, 2015 15:23:59 GMT -5
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Post by T Bhat on Mar 29, 2015 15:07:21 GMT -5
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Post by T Bhat on Mar 22, 2015 11:28:25 GMT -5
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Post by T Bhat on Mar 21, 2015 9:15:32 GMT -5
WE RECENTLY SCREENED for U.S. companies that do business worldwide and whose forward price/earnings ratios have contracted this year. Last fall we recommended Western Digital (WDC) shares at $87 (“Disk Drive Wild Card, Oct 20, 2014”). By year’s end they hit $110 but they’ve since slid back to $100. A strong dollar makes personal computers, which contain plenty of U.S. technology, more expensive in the short term for overseas buyers. Long-term, demand is exploding for data storage, and Western Digital stands to benefit. Shares fetch less than 12 times forward earnings estimates and earnings are expected to grow modestly this year.
Clothing maker PVH (PVH) was a poorly timed pick. We recommended shares at $131 apiece near the end of 2013 (“Calvin Klein, Meet Calvin Klein,” Dec. 23, 2013). The stock ended 2014 at $128 and has since tumbled below $103. Now just 13 times earnings, PVH is priced like a no-growth mall retailer, as investment bank Cowen & Company recently put it. But earnings are still growing. Cowen argues that the currency head winds are more than priced in and shares could hit $130 in a year. That’s the average price target of 19 analysts covering the stock.
Paccar (PCAR) makes trucks. Trucking companies are likely to buy 5% more rigs this year than last on replacement demand and expansion, says UBS. The Street sees Paccar driving home double-digit growth in earnings per share this year. Yet shares, down 6% year-to-date, go for 14 times forward earnings, a discount of 16% to the Standard & Poor’s 500. Hop in.
Precision Castparts (PCP) makes pricey castings used to shape critical parts for airplane engines and industrial turbines. Earnings are growing at a high single-digit pace. A year ago, when the stock sold for 18 times earnings, Wall Street loved it; 20 out of 22 analysts called it a Buy, with only two Holds. With the shares now down 18% in a year and selling for 15 times earnings, only half of analysts see a buying opportunity. We see it, too.
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Post by T Bhat on Mar 7, 2015 9:04:33 GMT -5
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Post by T Bhat on Mar 1, 2015 15:51:58 GMT -5
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Post by T Bhat on Feb 8, 2015 1:55:41 GMT -5
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Post by T Bhat on Feb 8, 2015 1:54:19 GMT -5
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Post by T Bhat on Jan 31, 2015 16:04:19 GMT -5
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Post by T Bhat on Jan 31, 2015 15:07:18 GMT -5
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Post by T Bhat on Jan 11, 2015 16:54:13 GMT -5
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