This Day On The Street
Continue to site
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

5 Stocks With Upgrades: DVN, HTLD, LRCX, XEC, CFN

NEW YORK ( TheStreet) -- The following stocks were upgraded to buy at TheStreet Ratings on Friday: Devon Energy (DVN - Get Report), Heartland Express (HTLD - Get Report), Lam Research (LRCX - Get Report), Cimarex Energy (XEC - Get Report) and CareFusion (CFN).

Devon Energy

The energy company reported Wednesday fourth-quarter earnings of $507 million, or $1.25 a share, down from year-ago earnings of $562 million, or $1.29.

"Devon is moving back to a position where the investment case could evolve beyond simply a call on the commodity; while 4Q11 results impressed vs. expectations, guidance for the coming year points to growth in liquids that is evolving faster than prior expectations," Bank of America Merrill Lynch analysts wrote in a report Thursday. "Overall, Devon has increasingly shown the market a solid, reliable strategy - albeit one that typically evolves slower versus peers. However the share price reaction to what were arguably solid results and production guidance has perhaps embedded the most immediate upside potential in the stock so that versus a more tangible event horizons within our coverage universe, we continue to rate the stock Neutral."

Shares of Devon Energy were upgraded to buy from hold by TheStreet Ratings.

"The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share," TheStreet Ratings wrote. "We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Devon Energy has an estimated price-to-earnings ratio for next year of 9.85; the average for exploration and production companies is 19.33. For comparison, Anadarko (APC) and EOG Resources (EOG) both have higher forward P/Es of 18.39 and 17.54, respectively.

Of the 19 analysts who cover Devon Energy, 14 rated it a hold. Three analysts gave it a but rating and two rated it a sell.

TheStreet Ratings gives Devon Energy a B- grade with a $82.81 price target. The stock closed Thursday at $75.02 and has risen 21% year to date.

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

Get Adobe Flash player

1 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
Only $9.95
14-Days Free
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
CFN $59.91 -0.10%
DVN $65.92 0.00%
HTLD $22.90 0.00%
LRCX $70.66 0.00%
XEC $128.20 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs