Ford, McDonald's, General Mills Hit Highs

Ford, McDonald's and General Mills hit 52-week highs Thursday.
By Jake Lynch ,

BOSTON (TheStreet) -- U.S. stock indices were mixed Thursday amid speculation the Federal Reserve might increase the discount rate. These stocks recorded 52-week highs.

3. Ford

(F) - Get Report

fell 2.6% to $13.73, achieving a five-year high of $14.54. Shares of the carmaker have risen 21% in the past month.

Quarter

: Ford swung to a fourth-quarter profit of $886 million, or 25 cents a share, as revenue increased 22% to $35 billion. The operating margin climbed from negative territory to 6.6%. Ford holds $37 billion of cash and $132 billion of debt.

Stock

: Ford has risen nearly sixfold in the past year, beating major benchmarks. The stock sells for a price-to-projected-earnings ratio of 10, a 75% discount to the industry average. The shares are also cheap based on sales and cash flow.

Consensus

: Of researchers following Ford, nine rate its stock "buy", seven rate it "hold" and two suggest selling the shares.

Buckingham Research

projects a share price of $18, implying the shares could gain 27%.

Soleil Securities

is also bullish, with a $16 target.

2. General Mills

(GIS) - Get Report

rose 0.6% to $73.64, hitting a high of $73.74. Shares of the food products maker have climbed 2.2% during the past month.

Quarter

: Fiscal second-quarter profit climbed 50% to $567 million, or $1.66 a share, as revenue inched up 1.7% to $4.1 billion. The operating margin expanded from 12% to 22%. General Mills holds $858 million of cash and $6.7 billion of debt.

Stock

: General Mills has advanced 54% during the past year, outperforming the

Dow Jones Industrial Average

and

S&P 500 Index

. The stock has a PEG ratio, a measure of value relative to expected growth, of 0.7. A ratio less than 1 signifies a bargain.

Consensus

: Of analysts covering General Mills, 17, or 81%, advise purchasing its shares and four recommend holding them.

Longbow Research

expects the stock to advance another 13% to $83.

UBS

expects it to rise to $82.

1. McDonald's

(MCD) - Get Report

rose 0.5% to $66.68, hitting a high of $66.74. Shares of the fast-food chain have increased 3.4% during the past month.

Quarter

: Fourth-quarter profit rose 23% to $1.2 billion, or $1.11 a share, as revenue increased 7.3% to $6 billion. McDonald's operating margin expanded from 26% to 28%. Its balance sheet has $1.8 billion of cash and $11 billion of debt.

Stock

: McDonald's has appreciated 20% in the past year, lagging behind U.S. indices. The stock trades at a price-to-earnings ratio of 14, a 50% discount to its peer-group average. A PEG ratio of 2.3 indicates costly shares relative to expected long-term growth.

Consensus

: Of analysts covering McDonald's, 14 recommend purchasing its shares and nine suggest holding them. The loftiest price target of $77, coming from

Goldman Sachs

(GS) - Get Report

, indicates potential for a 15% gain.

Sanford Bernstein

is also bullish.

-- Reported by Jake Lynch in Boston.

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