By Roger Choudhury, Lead Editor
Here we review the February 22nd buy recommendations of Jim Cramer, host of Mad Money on CNBC. Since then, for comparison purposes, the S&P 500 is down 3.31% and the Dow Jones is down 2.85%.
Macy’s (M) is down only 1.4% since February 22. Its most recent fiscal year ended this January, and it produced $1.98 in EPS, which was an increase of 153.8%, after posting - $11.40 in FY 2009 and $0.83 in FY 2010.
For this year, the Street expects proforma EPS to be between $2.25-$2.40, compared to proforma EPS of $2.09 in this most recent fiscal year. The next earnings release is on May 12. Expectations are between $0.10 and $0.17 per share for proforma EPS. For the same period in the previous fiscal year, it was $0.05 per share.
In February 2011, same store sales were up 5.8%, compared to the same 4 week period in 2010.
Macy’s shares trade with a P/S multiple of 0.4. In 2006, that figure was 0.8.
TJX (TJX): - 1.6% since February 22. In FY 2011 through January, the company made $3.30 in GAAP EPS, which was an increase of 16.1%, after growing by 36.5% in FY 2010. Net sales also grew by 8.1% in FY 2011, after +6.78% in FY 2010.
For FY 2012, the Street expects proforma EPS to come in between $3.60 and $3.95. The company expects it to be between $3.78 and $3.93. Proforma EPS in FY 2011 was $3.50. The next earnings release is scheduled for May 17, with analysts expecting between $0.78 and $0.84 in proforma EPS. In Q1 2011, proforma EPS was $0.80.
TJX shares trade with a P/S of 0.9. This is the second highest P/S since 2001.
Whole Foods (WFMI) is up 2.8% since February 22. In FY 2010 through September, the company made $1.43 in GAAP EPS, which was an increase of 68.24%, after +3.66% in FY 2009. For Q1 2011, GAAP/proforma EPS was $0.51, compared to GAAP/proforma $0.32 in Q1 2010. For Q2 2011, proforma EPS is expected to come in between $0.40 and $0.51. In comparison, Q2 2010 produced $0.38 in proforma EPS. These earnings come out on May 9.
For the entire fiscal year of 2011, the Street expects from $1.70 to $1.90 for EPS.
WFMI shares trade with a P/S multiple of 1.1. From 2003 to 2007, the multiples were 1.3, 1.6, 2.2, 1.2, and 0.8, respectively.
Amazon.com (AMZN) has dropped by 11.7% since February 22. In 2010, the company made $2.53 in EPS, which was an increase of 24.02%, after +36.91% in 2009. Analysts expect 2011 EPS to come in between $2.60 and $3.75.
The next earnings release is on April 22. Analysts expect Q1 2011 to produce EPS between $0.50 to $0.79. In comparison, Q1 2010 produced $0.66 in EPS.
These shares trade with a P/S multiple of 2.2. In 2007, that figure was 2.6.
Home Depot (HD) is down 5.3% since February 22. In FY 2011 through January 2011, the company posted an EPS of $2.01, which was an increase of 29.7%, after increasing by 17.16% in FY 2009. The company expects EPS from continuing operations to be up 9.5% to $2.20, excluding the impact of future share repurchases.
Using excess cash, the company intends to repurchase approximately $2.5 billion of outstanding shares throughout the year. Proforma EPS in 2010 was $2.03, and analysts expect FY 2012 to produce proforma EPS between $2.22 and $2.37.
Q1 2011 earnings come out on May 17 with a range from $0.47 to $0.52 for proforma EPS. In comparison, Q1 2010 had a proforma EPS of $0.45.
HD shares have a P/S multiple of 0.9. From 2004 to 2007, the multiples were 1.3, 1.1, 0.9, and 0.6, respectively.
Walgreen (WAG) is down only 1.8%, since February 22. In FY 2010 through August, the company made $2.12 in GAAP EPS, which was an increase of 4.9%, after dropping 6.9% in FY 2009. Proforma EPS in 2010 was $2.17. In FY 2011, analysts expect between $2.55 and $2.74 for proforma EPS.
In Q1 2011, the company made $0.62 versus $0.49 in Q1 2010. On March 22, Q2 2011 earnings come out. The Street expects between $0.75 and $0.85 for proforma EPS. In comparison, Q2 2010 produced an EPS of $0.68.
WAG shares have a P/S multiple of 0.6. From 2003 to 2007, the multiples were 1.1, 1.0, 1.1, 0.9, and 0.7, respectively.
Freeport-McMoran Copper & Gold (FCX) is down 1.0% since February 22. In 2010, the company produced a proforma EPS of $4.64, which was an increase of 54.1%, after rising to $3.01 in 2009 from $3.58 proforma and - $14.86 GAAP. In 2011, analysts expect proforma EPS to be between $4.90 and $6.93.
The next earnings release is on April 18. The Street expects Q1 2011 to produce proforma EPS between $1.05 and $1.44. In comparison, Q1 2010 proforma EPS was $1.02.
Company shares trade with a P/S of 5.2. Its highest performance in the 2000’s was in 2010 with a multiple of 6.0, and historically it traded with a multiple in the 2’s and 3’s. Moreover, the industry average is 3.7. Be wary.
Medco Health Solutions (MHS) has fallen 19% since February 22. In 2010, the company produced GAAP EPS of $3.16, which was an increase of 21.07%, after +22.54% in 2009. The proforma EPS was $3.40 in 2010, and the Street expects that to be between $4.03 and $4.15 in 2011.
Q1 2011 results come out on April 28 with expectations between $0.85 and $0.92. In comparison, Q1 2010 produced proforma EPS of $0.73 and GAAP EPS of $0.67.
The price to sales multiple on MHS shares is 0.4. Its highest multiple was in 2007 with 0.6.
NRG Energy (NRG): - 0.14% since February 22. In 2010, EPS fell by 46.5% to $1.84, after dropping by 20.71% in 2009. Analysts expect 2011 to be varied: they expect between $0.38 and $1.49.
Q1 2011 results are released on May 9. Analysts expect EPS to be between - $0.14 and $0.33. In comparison, Q1 2010 brought in an EPS of $0.22.
NRG shares trade with a P/S multiple of 0.6. From 2003 to 2007, the multiples were 2.1, 1.5, 1.6, 1.3, and 2.1, respectively. By this measure, NRG shares may be undervalued.
Oclaro (OCLR) collapsed by 33.8% since February 22. In FY 2010 ending in June, the company made $0.26 in GAAP EPS, which was an increase from - $1.12 in FY 2009 and - $1.26 in FY 2008. Proforma EPS was $0.39 in FY 2010. In FY 2011, analysts expect proforma EPS to come in between $0.45 and $0.51.
Q1 and Q2 2011 produced proforma EPS of $0.06 and $0.12, respectively. In comparison, Q1 and Q2 2010 produced proforma EPS of $0.00 and $0.05. Q3 2011 proforma EPS is expected to come in between $0.10 and $0.12. In Q3 2010, proforma EPS was $0.08. The next earnings release is on April 25.
OCLR trades with a P/S of 1.1. The latest fiscal year produced a multiple of 1.4, which is the highest ever.
JDS Uniphase (JDSU) is down 23.1% since February 22. In FY 2010 through June, the company posted a GAAP EPS of - $0.17. In FY 2009 and FY 2008, those figures were - $4.02 and - $0.10, respectively. Proforma EPS in FY 2010 was $0.41. In FY 2011, analysts expect proforma EPS to be between $0.87 and $1.00.
Q1 and Q2 2011 produced proforma EPS of $0.20 and $0.29, respectively. In comparison, it was $0.04 and $0.12 in Q1 and Q2 2010, respectively.
For Q3 2011, assuming the company makes $440 million in revenues with an 11% operating margin, a conservative proforma EPS estimate would be $0.175. Juxtapose that with $0.10 for Q3 2010. Analysts expect between $0.17 and $0.24 in Q3 2011. Earnings results are released on May 2.
JDSU trades with a price to sales multiple of 2.7. From 2005 to 2007, the multiples were 3.8, 2.6, and 2.0, respectively.
Agilent Technologies (A) has been flat since February 22. In FY 2010 through October, GAAP EPS was $1.94, after posting - $0.09 in FY 2009 and $1.87 in FY 2008. Proforma EPS in FY 2010 was $2.00. In FY 2011, the Street expects EPS to come in between $2.58 and $2.72.
Q1 2011 produced a proforma EPS of $0.60, after showing $0.38 in FY 2010. Q2 2011 expectations are between $0.64 and $0.66. In comparison, Q2 2010 proforma EPS was $0.43. The next earnings release is on May 10.
These shares trade with a P/S of 2.7. In 2005 and 2006, P/S was 3.2 and 3.1, respectively.
Apache (APA) is up 4.2% since February 22. In 2010, the company produced a GAAP EPS of $8.46, after being in the red in 2009 with - $0.87, but in the green in 2008 with $2.09. Proforma EPS in 2010 was $8.92. Analysts expect proforma EPS in 2011 to be between $9.29 and $13.40.
Q1 2011 results are released on April 25. The Street expects Q1 2011 proforma EPS to between $2.06 and $3.15. In comparison, Q1 2010 proforma EPS was $2.10.
APA trades with a P/S of 3.6. From 2005 to 2009, those figures were 3.0, 2.7, 3.6, 2.0, and 4.0, respectively.
Apple (AAPL) is down 3.2% since February 22. In FY 2010 through September, EPS was $15.15, which was an increase of 66.85%, after jumping by 69.40% in 2009. In 2011, analysts expect EPS to be between $20.41 and $24.17.
Q1 2011 has already produced an EPS of $6.43. In comparison, Q1 2010 had an EPS of $3.67. Analysts expect Q2 2011 to produce an EPS between $4.85 and $5.98, after posting $3.33 in Q2 2010. The next earnings release should come out on April 21.
Shares trade with a price to sales multiple of 4.0. From 2006 to 2008, the figures were 3.6, 6.7, and 2.3, respectively.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
