10. Staples (SPLS) sells office supplies and furniture through its retail stores and on the Web.
During the past three years, Staples has grown revenue 8.3% annually, on average. Fiscal third-quarter net income increased 7.1% to $289 million and earnings per share stretched 8.1% to 40 cents. The operating margin widened from 7.4% to 8%. Staples will announce fiscal fourth-quarter results on March 3. Its stock is up 9% in three months.
Of researchers covering Staples, 15, or 71%, advise purchasing its shares, five recommend holding and one suggests selling them. Credit Suisse offers the highest 12-month target, at $29, implying 30% of upside. Goldman's $26 target is consistent with a 16% rise. The bank believes that earnings growth bottomed during the third quarter and Staples is due for double-digit earnings per share growth on a share buyback. The bank cites the "tepid employment recovery, slow small business spending trends and secular stagnation in paper and ink consumption" as headwinds to the company that are already priced into its stock. Outperformance or material improvement on any of these fronts will cause investors to pay a higher multiple for Staples, according to Goldman.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV