) -- U.S. indices declined on Thursday, with the tech-heavy
falling 1.9%. However, these stocks hit 52-week highs.
3. Spirit AeroSystems Holdings
jumped 1.3% to $21.90. Shares of the aerospace company have climbed 8.7% during the past month. Spirit is scheduled to report fourth-quarter results on Feb. 4.
: Third-quarter profit increased 18% to $87 million, or 62 cents a share, as revenue grew 3% to $1.1 billion. The company's operating margin inched up from 11% to 12%. Spirit AeroSystems holds $207 million of cash. Its 0.6 debt-to-equity ratio is less than the industry average, indicating restrained leverage.
: We rate Spirit AeroSystems "hold." The stock has gained 54% during the past year, outpacing major U.S. indices. The shares are undervalued relative to those of aerospace and defense peers, based on projected earnings, book value and sales. They are expensive based on trailing earnings.
2. Green Mountain Coffee Roasters
rose 9.5% to $87.60, boosted by better-than-expected earnings and a positive forecast. Shares of the specialty coffee company have risen 13% during the past month.
: Fiscal first-quarter net income decreased 13% to $12 million and earnings per share dropped 28% to 27 cents, hurt by a higher share count. Excluding a one-time gain in the year-ago quarter, profit more-than-doubled. Revenue soared 77% to $349 million. Green Mountain's operating margin expanded from 30% to 31%. The company has a liquid balance sheet, with $124 million of cash and $77 million of debt.
: We rate Green Mountain Coffee Roasters "buy." The stock has tripled during the past year, beating major U.S. indices. The shares are expensive relative to those of food products peers, based on all our valuation measures, including trailing earnings, projected earnings, book value and sales.
1. H.J. Heinz
increased 1.9% to $44.36, boosted by rumors of a
takeover. Shares of the condiment-seller have increased 2.9% during the past month.
: Fiscal second-quarter net income decreased 16% to $231 million and earnings per share fell a more-modest 12% to 76 cents. Revenue climbed 3% to $2.7 billion. The company's operating margin narrowed from 30% to 15%. Heinz possesses adequate liquidity, with $461 million of cash. Its 2.5 debt-to-equity ratio indicates excessive leverage.
: We rate Heinz "buy." The stock has advanced 20% during the past year, less than major U.S. indices. The shares are cheap relative to those of food products peers, based on trailing earnings, projected earnings and cash flow. They are expensive when considering book value and sales.
-- Reported by Jake Lynch in Boston.