NEW YORK (
) -- Shares of the following stocks hit 52-week highs on Friday:
Philip Morris International
Philip Morris International
"While we must admit that we are surprised by the outperformance of PMI year-to-date (YTD) versus the overall group following its strength in 2011, we believe the momentum should continue for the year," Davenport analysts wrote in a March 26 report. "The overall tobacco group has underperformed the S&P 500 Index YTD, but PMI has clearly outperformed the tobacco group. We are raising our rating to a Buy and initiating our 12 month price target of $100, based on our new 2013 EPS of $5.90. We focus on three key reasons: consistency, a relatively benign tax environment and attractive yield."
Shares of Philip Morris hit a 52-week high Friday of $88.82. The stock's 52-week low of $60.45 was set on Oct. 4.
Philip Morris' estimated price-to-earnings ratio for next year is 15.04 times; the average for tobacco companies is 12.16. For comparison,
both have lower forward P/Es of 13.07 and 13.22, respectively.
Fifteen of the 22 analysts who cover Philip Morris rated it buy. Six analysts gave the stock a hold rating and one rated it sell.
gives Philip Morris a B grade with a buy rating and a
price target. The stock has risen 13.07% year to date.
"Our price objective of $76 is driven by a target P/E of 13.5x our 2013 EPS est,driven by a target P/E of 13.5x our 2013 EPS est, implying that the stock trades at a smaller than historical average discount to the large cap staples group," Bank of America Merrill Lynch analysts wrote in a March 21 report. "In our view, this narrowing of the gap is justified by KMB's growing exposure to faster growth emerging markets and greater commitment to marketing and innovation. Our valuation conclusions are supported by our DCF analysis, which assumes a weighted average cost of capital of 9% and a terminal growth rate of 3%. Risks to our price objective are a tighter pricing environment, a worsening slowdown in the developed markets macro setting, a greater than expected need for reinvestment, and higher levels of competition."
Shares of Kimberly-Clark hit a 52-week high Friday of $74.39. The stock's 52-week low of $61 was set on Aug. 9.
Kimberly-Clark's forward P/E is 13.48; the average for personal products companies is 15.63. For comparison,
both have lower forward P/Es of 11.06 and 14.93, respectively.
Thirteen of the 18 analysts who cover Kimberly-Clark rated it hold. Four analysts gave the stock a buy rating and one rated it sell.
gives Kimberly-Clark an A grade with a buy rating and an
price target. The stock has risen 62 cents, or 0.84%, year to date.
"FDO remains focused on growing sales and gross profit dollars," Guggenheim analysts wrote in a report Thursday. "This incremental growth will be driven by the addition of 1,000 new consumables SKUs -- including Pepsi and tobacco products, the expansion in the number of cooler doors per store, and a new impulse fixture at the front of the store."
Shares of Family Dollar hit a 52-week high Friday of $62.84. The stock's 52-week low of $44.42 was set on Aug. 9.
Family Dollar's forward P/E is 14.85; the average for specialty retailers is 16.76. For comparison,
has a forward P/E of 16.88.
Thirteen of the 27 analysts who cover Family Dollar rated it hold. Ten analysts gave the stock a buy rating and four rated it sell.
gives Family Dollar an A- grade with a buy rating and a
price target. The stock has risen 8.64% year to date.
-- Written by Alexandra Zendrian
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