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
TheStreet Open House

3 Stocks With Upgrades: WHR, PPS, PFCB

Stocks in this article: WHRPPSPFCB

NEW YORK ( TheStreet) -- These stocks were upgraded to buy by TheStreet Ratings on Wednesday: Whirlpool (WHR), Post Properties (PPS) and P.F. Chang's China Bistro (PFCB).

Whirlpool

The home appliances manufacturer reported last week fourth-quarter earnings of $205 million, or $2.62 a share, an increase from year-earlier earnings of $171 million, or $2.19 a share.

Shares of the company sold off at the end of December when retailer Sears (SHLD) announced declining holiday sales and that it would be closing up to 120 Kmart and Sears stores.

The stock fell about 47% in 2011 and has risen 49% year to date. Whirlpool is benefiting from an improving economy.

"Whirlpool expects to generate $100M-$150M of FCF (before dividends) as cash sources are projected to exceed cash uses of $914M. Including dividends ($148M in FY11), we see FY12 FCF flat to slightly negative, making it likely that the Company will refinance its $350M May 2012 notes," Bank of America Merrill Lynch analysts wrote in a Feb. 7 report. "Leverage at 1.7x total debt/EBITDA earnings before interest, taxes, depreciation and amortization is low relative to its low-BBB credit rating and incremental debt issuance should not result in negative ratings actions. An upgrade to WHR's mid-BBB target in FY12 would require a significant improvement in industry outlook and solid top-line and EBITDA growth, which we think is unlikely given the macroeconomic backdrop."

Whirlpool was upgraded to a buy from a from a hold by TheStreet Ratings.

Of the seven analysts who cover the company, three rated it a buy. Two analysts considered the company a hold and two considered it a sell.

Whirlpool has an estimated price-to-earnings ratio for next year of 9.42; the average for durable household product companies is 11.34. For comparison, Tupperware (TUP) has a forward P/E of 11.06 and Lifetime Brands (LCUT) has a forward P/E of 6.66.

TheStreet Ratings gives Whirlpool a B- grade with a $81.70 price target. The stock closed Tuesday at $70.70.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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