Willis Group, Cabot Oil: Ratings Changes
BOSTON (TheStreet) -- Here are three rating changes from TheStreet's stock model.
3.
The model upgraded
Signet Jewelers
(SIG) - Get Report
to "hold."
Quarter
: Signet swung to a fourth-quarter profit of $117 million, or $1.36 a share, from a loss of $424 million, or $4.97, a year earlier. Revenue grew 7%. The operating margin rose from 10% to 13%. Signet has $316 million of cash and $324 million of debt.
Stock
: Signet Jewelers has almost tripled during the past year, outperforming U.S. indices. The stock trades at a price-to-book ratio of 1.4 and a price-to-cash-flow ratio of 4.7, representing 56% and 75% discounts to industry averages.
Consensus
: Of analysts covering Signet Jewelers, five recommend purchasing its shares and five advise holding them.
Telsey Advisory Group
expects the stock to gain 20% to $37.
RBC Capital Markets
and
Bank of America
(BAC) - Get Report
are also bullish on Signet.
2.
The model downgraded
Cabot Oil & Gas
(COG) - Get Report
to "hold."
Quarter
: Fourth-quarter profit dropped 17% to $36 million, or 35 cents, as revenue inched up 0.4% to $233 million. The gross margin rose from 60% to 70% and the operating margin expanded from 17% to 27%. Cabot has $40 million of cash and $805 million of debt.
Stock
: Cabot Oil has risen 45% during the past year, lagging behind major benchmarks. The stock sells for a price-to-projected-earnings ratio of 33, a 140% premium to the industry average. It's cheap based on book value, sales and cash flow.
Consensus
: Of researchers evaluating Cabot Oil, 12 rate its stock "buy," 11 rate it "hold" and one says to "sell" it.
SunTrust Robinson Humphrey
projects a share price of $74, leaving room for the stock to double.
Howard Weil
is also optimistic about Cabot.
1.
The model upgraded insurance broker
Willis Group
(WSH)
to "buy."
Quarter
: Fourth-quarter profit increased 27% to $79 million, or 47 cents, as revenue climbed 3.1% to $824 million. The operating margin extended to 21%. Willis has $1.9 billion of cash and $2.4 billion of debt, amounting to a debt-to-equity ratio of 1.1.
Stock
: Willis Group has advanced 44% during the past year, trailing U.S. indices. The stock trades at a price-to-projected-earnings ratio of 11, a 9% discount to the industry average. It's expensive when considering book value, sales and cash flow.
Consensus
: Of firms rating Willis Group, five advocate purchasing its shares, seven counsel holding and one says to sell them.
Stifel Nicolaus
(SF) - Get Report
predicts the stock to climb 26% to $40.
Miller Tabak
expects it to hit $38.99.
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