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

7 Stocks With Upgrades: LM, SU, DO, KCG, HUN, VCI, MRH

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

Get Adobe Flash player

Valassis Communications

The marketing services and media company reported last week fourth-quarter earnings of $42.8 million, or 95 cents a share, up from year-ago earnings of $24.8 million, or 47 cents.

"While impressed with Q4's shared mail growth, seasonal contributions will likely not be repeated leaving potential for continued lumpy y/y trends ahead," Piper Jaffray analysts wrote in a report Tuesday. "We have increased confidence Valassis can hit its 3%+ shared mail growth target in FY12, but q/q volatility will not find support in other business segments facing unique challenges, which leaves a stock not for the faint of heart."

Shares of Valassis Communications were upgraded to buy from hold by TheStreet Ratings.

Valassis Communications has a forward P/E of 7.16; the average for media agencies is 24.43. For comparison, comScore (SCOR) and ValueClick (VCLK) both have higher forward P/Es of 16.14 and 10.7, respectively.

Of the 11 analysts who cover Valassis, eight rated the stock a buy and three gave it a hold rating.

TheStreet Ratings gives Valassis Communications a B grade with a $30.39 price target. The stock closed Friday at $25.58 and has risen 33.02% year to date.






Montepelier Re Holdings

The insurance and reinsurance company reported earlier this month fourth-quarter earnings of $28.5 million, or 40 cents a share, down from year-ago earnings of $41.8 million, or 63 cents.

"The company has taken steps in recent months (sale of MUSIC, Torus deal) to free up capital and position itself to be able to write more property business," Sterne Agee analysts wrote in a Feb. 10 report. "However, while pricing has increased in property catastrophe lines, management has held back on deploying capacity to position for potentially better rate going forward. The company in our view continues to have flexibility for further repurchase going forward with year-end equity of $1.55 billion about $50 mm higher than the company's stated goal of maintaining at least $1.5 billion of capital."

Shares of Montepelier Re Holdings was upgraded to buy from hold by TheStreet Ratings.

"The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures," TheStreet Ratings wrote. "We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Montepelier Re Holdings has a forward P/E of 8.39; the average for reinsurance companies is 8.41. For comparison, Everest Re Group (RE) has a lower forward P/E of 7.25; Alterra Capital Holdings' (ALTE) forward P/E is 9.94.

All five of the analysts who cover Montepelier Re Holdings rated it a hold.

TheStreet Ratings gives Montepelier Re Holdings a B grade and $21.18 price target. The stock closed Friday at $18.45 and has risen 3.94% year to date.

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

Get Adobe Flash player

-- Written by Alexandra Zendrian



>To contact the writer of this article, click here: Alexandra Zendrian

>To submit a news tip, send an email to: tips@thestreet.com.

>To follow the writer on Twitter, go to Alexandra Zendrian.

4 of 4

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 17,313.97 +47.98 0.28%
S&P 500 2,017.09 +5.73 0.28%
NASDAQ 4,607.9960 +14.5710 0.32%

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