Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

ACCO Brands Makes Jump Following Earnings

|Includes:ACCO Brands Corporation (ACCO)

ACCO Brands Corporation (NYSE:ACCO) is a world leader in branded office products. Its industry-leading brands include Swingline, Kensington, Wilson Jones, Quartet, GBC, and Day-Timer, among others. Under the GBC brand, the Company is also a leader in the professional printing market.

Our VE Forecast 16 Market Neutral Strategy Newsletter portfolio features the top long and short picks from each of our 16 sectors. For this month's Industrial Products pick, our Forecast model selected ACCO. Since our rebalance on October 17th, the stock has posted some decent earnings and made a jump. As of yesterday's close, the stock is up more than 16% and currently leads the long side of our portfolio. However, with the current market unrest, the short side is providing better overall returns and is led by the 23% return of FX Energy.

ValuEngine has issued a HOLD recommendation for ACCO BRANDS CP on Nov. 07, 2012. Based on the information we have gathered and our resulting research, we feel that ACCO BRANDS CP has the probability to ROUGHLY MATCH average market performance for the next year. The company exhibits ATTRACTIVE P/E ratio and price/sales ratio, but UNATTRACTIVE volatility and 5-year annualized return.

Based on available data as of Nov. 07, 2012, we believe that ACCO should be trading at $7.94. This makes ACCO 4.48% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For ACCO, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $0.81, forecasted EPS for the next four quarters of $0.99, and correlations to the 30-year Treasury bond yield of 2.92%.

 

 

ValuEngine Forecast

   
 

Target Price

Expected Return

1-Month

7.55

-0.37%

3-Month

7.62

0.49%

6-Month

7.63

0.65%

1-Year

7.57

-0.12%

2-Year

7.6

0.32%

3-Year

7.48

-1.32%

 

Valuation & Rankings

     

Valuation

4.48% undervalued

Valuation Rank

54

1-M Forecast Return

-0.37%

1-M Forecast Return Rank

22

12-M Return

6.46%

Momentum Rank

53

Sharpe Ratio

-0.13

Sharpe Ratio Rank

50

5-Y Avg Annual Return

-15.81%

5-Y Avg Annual Rtn Rank

33

Volatility

119.91%

Volatility Rank

8

Expected EPS Growth

21.39%

EPS Growth Rank

56

Market Cap (billions)

0.86

Size Rank

70

Trailing P/E Ratio

9.31

Trailing P/E Rank

89

Forward P/E Ratio

7.67

Forward P/E Ratio Rank

90

PEG Ratio

0.44

PEG Ratio Rank

78

Price/Sales

0.6

Price/Sales Rank

71

Market/Book

1.46

Market/Book Rank

56

Beta

3.81

Beta Rank

3

Alpha

-0.47

Alpha Rank

22

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: ACCO