The model upgraded insurer MetLife to "hold."
: Fourth-quarter profit tumbled 68% to $320 million, or 35 cents, as revenue fell 12% to $12 billion. The operating margin narrowed from 13% to 4.1%. MetLife has $28 billion of cash and $33 billion of debt, amounting to a debt-to-equity ratio of 1.
: MetLife has advanced 68% during the past year, outperforming U.S. stock-market indices. The stock trades at a price-to-projected-earnings ratio of 8.6 and a price-to-sales ratio of 0.9, 31% and 18% discounts to insurance industry averages.
: Of analysts covering MetLife, 12, or 71%, advise purchasing its shares, four recommend holding and one suggests selling them.
Sterne, Agee & Leach
expects the stock to rise 26% to $57.
predicts the shares will hit $55.
The model downgraded credit-card company Visa to "hold."
: Fiscal first-quarter net income jumped 33% to $763 million and earnings per share expanded 44% to 75 cents. Revenue climbed 13% to $2 billion. The operating margin extended from 57% to 60%. Visa has $6.5 billion of cash and $53 million of debt.
: Visa has appreciated 60% during the past 12 months, more than major stock-market benchmarks. The stock sells for a price-to-book ratio of 3, a 56% discount to its peer average. It's expensive based on trailing earnings, sales and cash flow.
: Of researchers following Visa, 31, or 82%, rate its stock "buy" and seven rate it "hold."
Janney Montgomery Scott
offers a price target of $125, leaving a potential 33% of upside.
thinks it will hit $121.
The model upgraded office-electronics maker Canon to "buy."
: Fourth-quarter profit expanded 22% to $652 million, or 53 cents, as revenue tumbled 35% to $9.8 billion. The operating margin rose from 6.8% to 9.9%. Canon's balance sheet stores $8.8 billion of cash, equal to a quick ratio of 1.8, and $106 million of debt.
: Canon has returned 47% during the past year, more than the
Dow Jones Industrial Average
S&P 500 Index
. It trades at a price-to-projected-earnings ratio of 24, a 42% discount to the industry average. It's expensive based on sales and cash flow.
: Just two firms rate Canon, both ranking its stock a "hold."
Bank of America
expects the shares to gain 7% to $49.44.
model predicts they will climb 34% to $62.17. It awards Canon a financial strength score of 8.9 out of 10.
-- Reported by Jake Lynch in Boston.