Capital One, Kellogg Are S&P Gainers
NEW YORK (
) -- Transactions news helped make
Kellogg
(K) - Get Report
and
Capital One
(COF) - Get Report
among the best performing
S&P 500
stocks midday Wednesday.
Both stocks are considered a rating at
TheStreet Ratings
.
The S&P 500 rose 1.79 points midday Wednesday to 1,352.29.
Kellogg shares rose 5.33% to $52.98. The company announced it would buy Pringles from
Procter & Gamble
(PG) - Get Report
for $2.7 billion on Wednesday.
Pringles was initially going to be sold to
Diamond Foods
(DMND)
but the Emerald Nuts maker recently said that it had to
restate its financials for the last two years
putting the deal in jeopardy.
Analysts from KeyBanc Capital Markets and Jefferies predicted Diamond Foods'
wouldn't be completed following the company's accounting issues.
Kellogg has an estimated price-to-earnings ratio for next year of 14.09; the average for food products companies is $13.89. For comparison,
General Mills
(GIS) - Get Report
and
Ralcorp
(RAH)
both have higher forward P/Es of 14.14 and 16.16, respectively.
Fifteen of the 23 analysts who cover Kellogg rated it a hold. Seven analysts gave the stock a buy rating and one rated it a sell.
TheStreet Ratings
gives Kellogg a B grade with a
price target. The stock has risen 4.75% year to date. Its 52-week high of $57.70 was set on May 13; its 52-week low of $48.10 was on Nov. 29.
Shares of Capital One rose 2.73% to $49.29. The bank late Tuesday got approval from the
Federal Reserve
to
.
When the transaction is completed, Capital One will be the ninth-largest U.S. bank holding company by total assets, with $298 billion.
Capital One has an estimated price-to-earnings ratio for next year of 7.44; the average for consumer financial companies is 10.65. For comparison,
Visa
(V) - Get Report
and
American Express
(AXP) - Get Report
both have higher forward P/Es of 16.63 and 11.16, respectively.
Of the 30 analysts who cover Capital One, 19 rated it a buy. Nine analysts considered Capital One a hold and two gave it a sell rating.
TheStreet Ratings
gives Capital One a B- grade with a buy rating and
price target. The stock has risen 16.98% year to date. Its 52-week high of $56.26 was set on May 19; its 52-week low of $35.94 was set on Aug. 8.
-- Written by Alexandra Zendrian
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