This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Target, First Bancorp: Rating Changes

The stock: John Bean Technologies has more than doubled in 2009, trouncing major U.S. indices. The stock trades at a price-to-earnings ratio of 15, indicating a discount to peers and the market, and offers a 1.7% dividend yield. The company's weak financial position is a cause for concern.

The model upgraded King Pharmaceuticals (KG) to "hold."

The numbers: Second-quarter revenue rose 12% to $445 million, but net income decreased 7% to $38 million and earnings per share dropped 12% to 15 cents, hurt by a higher share count. The operating margin dropped from 26% to 24% and the net margin dipped from 10% to 9%. Around $485 million of cash and a quick ratio of 1.4 demonstrate ample liquidity. And a debt-to-equity ratio of 0.3 indicates fiscal prudence.

The stock: King Pharmaceuticals is down 4% in 2009, underperforming major U.S. indices. The company doesn't pay dividends.

The model upgraded retailer Target (TGT - Get Report) to "buy."

The numbers: Second-quarter net income dropped 6% to $594 million and earnings per share fell 4% to 79 cents as revenue declined 3% to $15 billion. The operating margin remained steady below 8% and the net margin dipped below 4%. Target has a less-than-ideal liquidity position, reflected by a quick ratio of 0.8. An $18 billion debt load and a debt-to-equity ratio of 1.2 indicate excessive leverage. But we give Target a financial strength score of 8.9 out of 10 due to its resilient revenue.

The stock: Target has advanced 31% in 2009, outpacing major U.S. indices. The stock trades at a fair price-to-earnings ratio of 16 and offers a 1.5% dividend yield.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CRR $35.82 -4.50%
FBNC $16.73 0.06%
JBT $33.54 -1.40%
TGT $77.22 -1.30%
AAPL $126.84 0.34%

Markets

DOW 17,856.78 -278.94 -1.54%
S&P 500 2,071.26 -29.78 -1.42%
NASDAQ 4,927.37 -55.4390 -1.11%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs