"One theme we heard was that management may not need Arabica/Robusta prices to go any lower to significantly boost earnings in the critical coffee segment," JPMorgan analysts wrote in a March 12 report. "And we got the sense that management may think prices could go even lower, which theoretically might help penny profits even more and support margins. We believe that management envisions FY13 having nowhere near the COGS headwinds FY12 experienced. This supports our belief that SJM, more than perhaps any other company we cover, could have a food input cost tailwind this year, rather than just less of a headwind."Shares of J.M. Smucker hit a 52-week high of $81.55 on Friday. The stock's 52-week low of $66.43 was set on Aug. 26. J.M. Smucker's forward P/E is 15.74; the average for food products companies is 13.8. For comparison, H.J. Heinz (HNZ) has a lower forward P/E of 14.87; Sara Lee's (SLE) forward P/E is 20.62. Ten of the 16 analysts who cover J.M. Smucker rated it hold. Six analysts gave the stock a buy rating. TheStreet Ratings gives J.M. Smucker an A grade with a buy rating and a $99.70 price target. The stock has risen 3.62% year to date.
WellCare Health "The company could also see competition from non-profit competitors in the upcoming RFP pipeline, which could lead to lower rates," Wedbush analysts wrote in a March 26 report. "An additional risk is the possibility of the Supreme Court overturning Medicaid expansion in the Affordable Care Act." Shares of WellCare Health hit a 52-week high of $72.27 on Friday. The stock's 52-week high of $33.29 on Oct. 4. WellCare Health's forward P/E is 13.94; the average for health care providers is 17.99. For comparison, both Coventry Health (CVH) and Amerigroup (AGP) have lower forward P/Es of 10.1 and 13.29 times. Nine of the 14 analysts who cover WellCare Health rated it hold; five analysts gave the stock a buy rating. TheStreet Ratings gives WellCare Health a B grade with a buy rating and a $85.29 price target. The stock has risen 37.37% year to date.
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