Occidental, Teck, Hot Topic: Ratings Upgrades
BOSTON (TheStreet) -- TheStreet's stock model upgraded the following stocks to "buy."
4.
The model upgraded
Hot Topic
(HOTT)
to "buy."
Quarter
: Fourth-quarter profit dropped 44% to $8 million, or 18 cents a share, as revenue decreased 10% to $214 million. The operating margin narrowed from 9.6% to 6.2%. Hot Topic has $123 million of cash, equal to a quick ratio of 2, and no debt.
Stock
: Hot Topic has dropped 34% during the past year, underperforming U.S. indices. The stock trades at a price-to-book ratio of 1.1 and a price-to-sales ratio of 0.4, 64% and 55% discounts to industry averages. It's expensive based on projected earnings.
Consensus
: Of analysts covering Hot Topic, one recommends purchasing its shares, eight advise holding and two suggest selling them.
BMO
(BMO) - Get Report
and
JPMorgan
(JPM) - Get Report
expect the stock to fall 15% to $6.
Piper Jaffray
(PJC) - Get Report
predicts it will fall to $4.50.
3.
The model upgraded
Foot Locker
(FL) - Get Report
to "buy."
Quarter
: Foot Locker swung to a fourth-quarter profit of $23 million, or 14 cents, from a loss of $125 million, or 81 cents, a year earlier. Revenue inched up 0.6%. The operating margin rose to 3.4%. Foot Locker has $569 million of cash and $138 million of debt.
Stock
: Foot Locker has appreciated 43% during the past 12 months, lagging behind the
S&P 500 Index
. It sells for a PEG ratio, a measure of value relative to expected long-term growth, of 0.3, 80% less than the industry average. A ratio below 1 signifies a bargain.
Consensus
: Of analysts following Foot Locker, nine, or 56%, rate its stock "buy," five rate it "hold" and two rate it "sell."
FBR Capital Markets
(FBCM)
projects a price target of $17, leaving a potential 11% gain.
Citigroup
(C) - Get Report
predicts the stock will hit $16.
2.
The model upgraded
Teck Resources
(TCK)
to "buy."
Quarter
: Teck swung to a fourth-quarter profit of $411 million, or 70 cents, from a loss of $607 million, or $1.27, a year earlier. Revenue increased 35% to $2.2 billion. The operating margin extended to 32%. Teck has $1.4 billion of cash and $8 billion of debt.
Stock
: Teck has risen sixfold during the past year, more than major benchmarks. The stock trades at a price-to-book ratio of 1.9 and a price-to-cash-flow ratio of 9.3, 57% and 64% discounts to industry averages. It's also cheap based on sales per share.
Consensus
: Of firms rating Teck, 16, or 80%, advocate purchasing its shares and four counsel holding them.
Bank of America
(BAC) - Get Report
expects the stock to rise 29% to $59.
UBS
(UBS) - Get Report
predicts it will hit $49.57.
HSBC
(HBC)
rates Teck "neutral."
1.
The model upgraded
Occidental Petroleum
(OXY) - Get Report
to "buy."
Quarter
: Fourth-quarter profit more than doubled to $938 million, or $1.16, as revenue increased 13% to $4.5 billion. The operating margin extended to 34%. Occidental has $1.2 billion of cash and $2.8 billion of debt, equal to a debt-to-equity ratio of 0.1.
Stock
: Occidental has gained 55% during the past 12 months, matching the gain of the
Nasdaq
. The stock sells for a PEG ratio of 0.4 and a price-to-projected-earnings ratio of 12, 64% and 16% discounts to industry averages.
Consensus
: Of analysts covering Occidental Petroleum, 16, or 73%, rate its stock "buy", five rate it "hold" and one ranks it "sell."
Goldman Sachs
(GS) - Get Report
predicts the stock will rise 22% to $105.
Morgan Stanley
(MS) - Get Report
expects it to hit $100.
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-- Reported by Jake Lynch in Boston.