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Kellogg Is Finally Yielding Over 3% Again, But I'll Wait For A Further Pullback
- Since my most recent article on the company, shares in Kellogg have dropped by over 5%.
- The dividend has since been increased by $0.03, or 6.5%.
- K isn't as overvalued as it was a few months ago, but it's still trading slightly above 5-year average p/e and p/s ratios.
- I'll be buying the stock if and when it hits $60 in order to get a margin of safety.
Cooper Tire & Rubber: A Great Company, But I'll Wait For A Pullback
- Up 25.8% YTD, shares of CTB are starting to look a bit expensive.
- P/E and P/S ratios have gone up quite a bit.
- The recently announced share repurchase program should lower the number of outstanding shares and boost EPS.
- My price target is well below the current level.
Why I'm Still Not Buying Wal-Mart
- I recommended staying away from Wal-Mart in February after the company raised its dividend by only 2%.
- Now, low EPS expectations combined with an unusually high payout ratio mean chances for double digit dividend increases are slim.
- Wal-Mart is trading at a premium to its 5 year P/E and P/B ratios, which I don't think it deserves.
Stanley Black & Decker: A Great Stock For Long-Term Dividend Growth Investors
- Shares in SKW are up 13.26% YTD, beating the S&P500 by a wide margin.
- The recent 4% dividend increase was a bit disappointing, but I believe there's room for growth in the nearby future.
- SKW's balance sheet looks very good, with over $0.5 billion in cash and equivalents.
Wait For A Pullback Before Buying Republic Services
- Republic Services is up 18.5% year to date and is now trading near its 52 week high.
- The company has healthy growth in dividends and earnings per share.
- Short term balance sheet health is far from perfect, but improving.
- I won't be buying at these levels.
Buy Dunkin' Brands Near Its 52-Week Low
- Down 9.67% YTD shares in DNKN are looking very cheap.
- The company is trading at very high p/e and p/s ratio, but I believe this can be justified by strong growth expectations.
- The long term debt isn't growing despite a quickly growing number of stores.
Consider Pinnacle Foods For Its 2.92% Yield
- Pinnacle Foods' 2.92% dividend yield and high expected EPS growth make it very attractive for dividend growth investors.
- Its short-term balance sheet health is excellent, with a current ratio of 2.49.
- The stock is up 17+% YTD. I'll wait for a pullback before getting in.
- PF is trading at lower p/e and p/s ratios than its competitors.
Kohl's EPS Growth Is Mostly Due To Share Repurchases: Still A Great Stock To Own
- Almost all of Kohl's EPS growth is due to share repurchases. Its 5-year net income growth rate stands at only 0.09%.
- Kohl's is trading at a much lower p/e ratio than its competitors. However, its profit margin is also a lot lower.
- Kohl's balance sheet looks really good, with a current ratio of 1.95.
I'm Staying Away From Consolidated Edison Because Of Its Very Low Dividend Growth Rate
- Currently yielding 4.41%, shares in ED might be interesting for those looking for income-generating stocks.
- However, with a DGR of only 1.0% over the past 5 years, inflation is a serious risk to your purchasing power.
- Long-term debt has been growing, while the short-erm financial health is deteriorating. The current ratio has dropped to 0.9.
Buy The Dip: 4.67% Yielding B&G Foods Is On Sale Right Now
- Shares in B&G Foods are down over 14% YTD after the company missed analyst estimates and reduced guidance.
- High aquisition costs reduced EPS in the most recent fiscal quarter. However, revenue growth is very impressive.
- The 4.67% dividend is high, but not unsustainable.
Why I'm Not Buying Campbell Soup At These Prices
- Campbell plans to launch over 200 new products in FY2015 and increase revenue to $10 billion within 5 years.
- However, shares are trading well above their 5 year average p/e and p/s ratios.
- Current ratio of 0.69 and quick ratio of only 0.42 are a good reason to look elsewere.
Now Is The Time To Buy Ralph Lauren
- EPS growth in the current fiscal year will be limited due to higher operating expenses related to company expansion.
- The company has beaten analyst EPS estimates in each of 4 most recent quarters.
- Ralph Lauren's balance sheet looks great, with $15.55/share in cash and short term investments.
Update: TJX Companies Releases Q2 2015 Results
- TJX has released its quarterly results for Q2, announcing consolidated comparable store sales up 3%, thanks to great performance in TJX Europe and HomeGoods.
- The company has increased its full year guidance, now expects diluted EPS in the range of $3.08 to $3.16.
- The company has continued boosting EPS through share repurchases, as I expected, with $440 million worth of shares bought back in Q2.
- However, at 18.2 - 18.7 times expected earnings, I still won't be buying.
Macy's Looks Good, But A Bit Expensive
- Up 27.7% over the past year, shares in Macy's are looking a bit expensive.
- EPS growth in recent years has been fuelled by share buybacks and profit margin growth.
- Balance sheet looks great: Macy's has over 8% of its current market cap in cash.
Buy Honeywell For Its Growing Revenues And Expanding Profit Margin
- Shares in Honeywell currently yield 1.91%, which is low compared to its largest competitor General Electric.
- However, the company has been growing revenues and margins, and expects double digit earnings growth in the next 5 years.
- The balance sheet looks great with close to 9% of the current market cap in cash and equivalents.
TJX Is Still A Bit Expensive, Despite The 16+% YTD Drop
- Shares in TJX have dropped by over 16% YTD. Still, I'd rather wait for them to go down a bit more.
- Profit margins are at 10 year highs.
- Balance sheet perfection: Low long term debt and over $2.3 billion in cash.
- Large stock buybacks boost the company's EPS growth rate.
Buy Six Flags For Its 5.1% Dividend Yield And International Expansion
- At first glance, the company appears expensive. However, it is trading at a lower price to FCF ratio than its competitors.
- 5.10% dividend yield makes this a great stock for investors looking for income. However, high payout ratios suggest there's little room for dividend growth.
- The recent pullback from its 52 week high make this stock very attractive.
Update: Fossil Inc. Reports Q2 2014 Earnings
- As I predicted in my recent article, the company has once again beaten analyst expectations.
- Rapid growth in stores has increased operating expenses.
- Net sales up 8%, fuelled by growth in sales of watches and jewelry.
- Full year EPS guidance increased by $0.05, now stands at $6.95 - $7.35.
Now Is The Time To Consider Ross Stores
- Shares in ROST have dropped by 10.9% year to date, providing an excellent entry point.
- Dividend yield is low, at only 1.20%, but may grow at a high pace in the near future.
- The number of stores is expected to grow, which should boost revenue and earnings.
Goodyear Is Looking Great At Current Prices
- Shares in Goodyear recently dropped as 2nd quarter revenues were disappointingly low.
- However, lower cost of goods sent profits up.
- Goodyear is trading at a very low forward price to earnings ratio. EPS is expected to go up, partially because of Goodyear's stock buybacks.
- The recent 20% dividend increase shows dedication to returning capital to shareholders.
I'm Not Buying Darden Restaurants, Despite The 4.66% Dividend Yield
- Darden recently sold Red Lobster. Proceeds of this sale will go towards reducing the long-term debt and buying back $0.5 billion worth of shares.
- The dividend is very high, at 4.66%, but I don't expect any growth in the current or next fiscal year.
- P/E and P/S ratios are a bit too high in my opinion. I'll be buying if and when shares in Darden reach $40.
Why I'm Not Buying Dominion Resources At This Price
- Shares in D have doubled in the past five years, which has caused the dividend yield to drop to only 3.54%, well below the industry average.
- D is more expensive than its competitors both on a P/E and P/S basis.
- Payout ratio of 88.75% is very high. The dividend growth will be limited by EPS growth.
- I'm staying on the sidelines for now, waiting for a better entry point.
Why You Should Consider Fossil Ahead Of Earnings
- FOSL has beaten both its own guidance and analyst estimates in each of the past 4 quarters.
- Long term, revenue growth and large share repurchases should boost EPS even higher.
- The company is trading at a discount to its 5 year average p/e and p/s ratios.
I'd Love To Buy Costco, But Not At This Price
- A low dividend of 1.20% means this is not a stock for investors looking for income.
- Revenue and EPS have grown by high-single digits over the past 5 years.
- Its balance sheet looks very good, with a current ratio of 1.19 and a low level of long-term debt.
- I'd love to buy some shares, but not at a price-to-earnings ratio of 26.7.
DineEquity Looks Good But I'll Wait Until They've Refinanced The Long Term Debt
- DineEquity's high long term debt means the company has to spend a large part of their income on interest. Debt refinancing may be the solution.
- 3.66% dividend leads to high payout ratio but EPS is expected to grow at a high rate in the current and next fiscal year.
- I'm not buying DineEquity right now, but I will keep an eye on it. If interest on the long term debt goes down, I'll be buying this restaurant stock.
Why I Expect Columbia Sportswear Company To Outperform
- Shares in COLM have dropped by over 12% in the past month, lowering its p/e ratio to 27.6.
- High growth in revenue and EPS is expected for this year and next year.
- The company has an amazing balance sheet, though part of its cash is in foreign jurisdictions.
- Low payout ratio and growing earnings mean COLM's dividend growth may accelerate.
Buy Cracker Barrel Old Country Store For Its Earnings Growth And High Dividend Yield
- Down 12.05% YTD, shares in CBRL are now yielding 4.13%.
- Earnings have been growing at double digits on average over the past 5 years and analysts expect this to continue next fiscal year.
- The company has managed to drastically reduce its long term debt.
- Still, CBRL is trading at a discount to its peers DIN and JACK.
Down 11.1% YTD, The Cheesecake Factory Is A Great Buy
- Shares in CAKE have gone down by 11.1% YTD, and are now trading near their 52-week low.
- The recent 18% dividend increase shows dedication to the company's shareholders, and has pushed the dividend yield up to 1.54%.
- Domestic and international expansion should raise revenues.
- Share buybacks have boosted EPS in recent years.
Buy Eastman Chemical After Its Recent Drop
- Buy EMN for its 1.77% dividend yield with a very low payout ratio.
- The company is growing revenue and earnings, while trading at a significant discount to its 5 year average p/e ratio.
- Large share repurchases increase EPS and are a great idea at the current low valuations.
Why I'm Still Not Buying Overvalued Kimberly-Clark
- Kimberly-Clark hasn't seen much growth in revenue in recent years.
- EPS growth is mostly due to share repurchases.
- P/e and p/s ratios are well above their 5 year averages.
- I'm staying far away from this company for now.
Buy FedEx For Its Growing Earnings And Dividends
- Low dividend means this is not a great stock for those needing immediate income, but for investors with a longer horizon, an investment in FDX could prove very profitable.
- The company has bought back $4.3 billion worth of its own stock, boosting EPS by lowering the number of shares.
- Still, there's a huge amount of cash left on FDX's balance sheet.
- Forward p/e ratio stands at only 16.8.
Plenty Of Reasons To Love Foot Locker
- Shares in Foot Locker have gone up by 46.4% since I recommended buying them in September last year.
- Analysts expect the company to continue growing EPS at double digit rates.
- Dividend yield of 1.83% isn't very high, but low payout ratio means there's plenty of room for growth.
- Balance sheet looks great with a current ratio of 3.54, no long term debt, and a billion dollars in cash.