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10 Stocks to Benefit from Stronger Yuan

China is relaxing its currency policy, which will lower the cost of American goods, boosting U.S. exporters.
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BOSTON (TheStreet) -- U.S. stocks rallied yesterday after China said it would relax its yuan currency peg. The move will make U.S. goods cheaper overseas, benefiting American exporters. Here are 10 companies that will capitalize on a weaker dollar.

10.

Boeing

(BA) - Get Boeing Company Report

is an aerospace and defense company.

Quarter

: First-quarter profit dropped 15% to $519 million, or 70 cents a share, as revenue declined 7.8%. The operating margin rose from 6.3% to 7.6%. Boeing has $10 billion of cash and $13 billion of debt, equaling a debt-to-equity ratio of 4.4

Stock

: Boeing has advanced 43% during the past year, outperforming U.S. stock indices. Its PEG ratio, a measure of value relative to expected growth, of 0.4 signals a 60% discount to estimated fair value. The stock is also cheap based on cash flow.

Consensus

: Of analysts covering Boeing, 18, or 64%, advise purchasing its shares, seven recommend holding and three suggest selling them.

Gleacher Securities

(BPSG)

expects the stock to rise 45% to $100.

Stifel Financial

(SF) - Get Stifel Financial Corp. Report

predicts that it will hit $90.

9.

Caterpillar

(CAT) - Get Caterpillar Inc. Report

manufactures construction and mining equipment.

Quarter

: Caterpillar swung to a first-quarter profit of $233 million, or 36 cents, from a loss of $112 million, or 19 cents, a year earlier. The operating margin fell from 16% to 12%. Cat has $30 billion of debt, converting to a debt-to-equity ratio of 3.4.

Stock

: Caterpillar has doubled during the past 12 months, beating U.S. benchmarks. It sells for a price-to-cash-flow ratio of 6.9, a 58% discount to the machinery industry average. Its PEG ratio of 0.3 reflects a 70% discount to estimated fair value.

Consensus

: Of researchers following Caterpillar, 13, or 50%, advocate purchasing its shares, 11 advise holding and two say to sell them.

RBC

(RY) - Get Royal Bank of Canada Report

offers a target of $86, leaving a potential return of 22%.

Avondale Partners

offers a target of $85.

8.

Freeport-McMoRan

(FCX) - Get Freeport-McMoRan, Inc. (FCX) Report

explores for copper, silver and gold.

Quarter

: First-quarter profit multiplied to $945 million, or $2, as revenue soared 68%. The operating margin rose from 27% to 47%. The balance sheet stores $3.8 billion of cash and $6.1 billion of debt, translating to a debt-to-equity ratio of 0.6.

Stock

: Freeport-McMoRan has appreciated 36% during the past year, beating U.S. indices. It trades at a price-to-projected-earnings ratio of 7.1, a 54% discount to its peer average. Its PEG ratio of 0.2 reflects an 80% discount to estimated fair value.

Consensus

: Of firms covering Freeport, 13, or 65%, rate its stock "buy", six rate it "hold" and one ranks it "sell."

Barclays

(BCS) - Get Barclays PLC Sponsored ADR Report

predicts that the stock will gain 74% to $120.

JPMorgan

(JPM) - Get JPMorgan Chase & Co. (JPM) Report

values it at $111, leaving 41% of potential upside.

7.

Cummins

(CMI) - Get Cummins Inc. Report

manufactures diesel and natural-gas engines.

Quarter

: First-quarter profit multiplied to $149 million, or 75 cents, as revenue inched up 1.6%. The operating margin jumped from 2.5% to 7%. Cummins has $1.1 billion of cash and $735 million of debt, equaling a debt-to-equity ratio of 0.2.

Stock

: Cummins has more than doubled during the past 12 months, outpacing U.S. benchmarks. It sells for a price-to-projected-earnings ratio of 14, a 31% discount to its peer average. Its PEG ratio of 0.3 indicates a 70% discount to estimated fair value.

Consensus

: Of analysts covering Cummins, 12, or 60%, advise purchasing its shares and eight recommend holding them.

Credit Suisse

(CS) - Get Credit Suisse Group AG Sponsored ADR Report

offers a target of $100, leaving a potential return of 32%.

UBS

(UBS) - Get UBS Group AG Report

expects the stock to rise 29% to $98.

6.

Bucyrus

(BUCY)

manufactures mining equipment.

Quarter

: First-quarter profit tumbled 38% to $35 million, or 45 cents, as revenue inched up 0.2%. The operating margin tightened from 16% to 14%. Bucyrus has $242 million of cash and $1.5 billion of debt, converting to a debt-to-equity ratio of 0.9.

Stock

: Bucyrus has returned 83% during the past 12 months, beating U.S. indices. It trades at a price-to-projected-earnings ratio of 10, a 48% discount to the industry average. Its PEG ratio of 0.2 reflects an 80% discount to estimated fair value.

Consensus

: Of researchers following Bucyrus, 13, or 72%, advise purchasing its shares and five recommend holding them.

Sidoti & Co.

values the stock at $95, leaving 84% of potential upside.

BMO

(BMO) - Get Bank of Montreal Report

projects that the shares will touch $92.

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5.

Nvidia

(NVDA) - Get NVIDIA Corporation Report

sells chips for advanced visual displays.

Quarter

: Nvidia swung to a first-quarter profit of $138 million, or 23 cents, from a loss of $201 million, or 37 cents, a year earlier. Revenue surged 51%. The operating margin turned positive. Nvidia has $1.8 billion of cash and $24 million of debt.

Stock

: Nvidia has returned 9.6% during the past year, trailing benchmarks. It sells for a price-to-projected-earnings ratio of 12 and a price-to-sales ratio of 1.9, 20% and 47% discounts to peer averages. It's also cheap based on book value.

Consensus

: Of firms covering Nvidia, 11, or 34%, rate its stock "buy," 19 rank it "hold" and two rate it "sell."

Raymond James

(RJF) - Get Raymond James Financial, Inc. Report

expects the stock to more than double to $28.

JMP Securities

(JMP) - Get JMP Group LLC Report

predicts that it will command $25.

4.

Nike

(NKE) - Get NIKE, Inc. (NKE) Report

sells sports equipment and apparel.

Quarter

: Fiscal third-quarter profit more than doubled to $496 million, or $1.01, as revenue grew 6.6% to $4.7 billion. The operating margin extended from 13% to 14%. Nike has $4 billion of cash, equaling a quick ratio of 2.4, and $568 million of debt.

Stock

: Nike has returned 32% during the past 12 months, outpacing U.S. indices. It trades at a price-to-projected-earnings ratio of 17 and a price-to-book ratio of 3.8, on par with peers. Its PEG ratio of 0.8 signals a 20% discount to estimated fair value.

Consensus

: Of analysts covering Nike, 14, or 64%, advise purchasing its shares and eight recommend holding them.

D.A. Davidson

values Nike at $94, leaving 26% of potential upside.

Robert W. Baird

forecasts that the stock will gain 23% to $92.

3.

Estee Lauder

(EL) - Get Estee Lauder Companies Inc. Class A Report

sells cosmetics, fragrances and hair-care products.

Quarter

: Fiscal third-quarter profit more than doubled to $58 million, or 28 cents, as revenue grew 9.8% to $1.9 billion. The operating margin widened from 5.4% to 7.7%. Estee Lauder has $1.4 billion of cash and $1.4 billion of long-term debt.

Stock

: Estee Lauder has risen 16% during the past year, trailing benchmarks. It sells for a price-to-projected-earnings ratio of 19, a 17% premium to the industry average. Its PEG ratio of 0.2 indicates an 80% discount to estimated fair value.

Consensus

: Of researchers following Estee Lauder, six, or 30%, advocate purchasing its shares and 14 recommend holding them.

Caris & Co.

offers a target of $82, leaving a potential return of 38%.

Piper Jaffray

(PJC) - Get Piper Jaffray Companies Report

predicts that the stock will hit $75.

2.

Tiffany & Co.

(TIF) - Get Tiffany & Co. Report

sells fine jewelry.

Quarter

: First-quarter profit nearly tripled to $64 million, or 50 cents, as revenue increased 22%. The operating margin widened from 12% to 17%. Tiffany & Co. has $674 million of cash and $760 million of debt, equaling a debt-to-equity ratio of 0.4.

Stock

: Tiffany & Co. has risen 69% during the past 12 months, beating U.S. indices. It trades at a price-to-projected-earnings ratio of 15, on par with its specialty retail peer average. Its PEG ratio of 0.8 signals a 20% discount to estimated fair value.

Consensus

: Of firms covering Tiffany & Co., 16, or 73%, rate its stock "buy" and six rank it "hold." None rate it "sell."

Jefferies

(JEF) - Get Jefferies Financial Group Inc. Report

offers a target of $61, leaving a potential return of 38%.

HSBC

(HBC)

speculates that the stock will rise 36% to $60.

1.

Coach

(COH)

sells premium hand bags and accessories.

Quarter

: Fiscal third-quarter profit expanded 37% to $158 million, or 50 cents, as revenue grew 12% to $831 million. The operating margin extended from 27% to 30%. Coach holds $908 million of cash and $25 million of long-term debt.

Stock

: Coach has soared 60% during the past year, outpacing benchmarks. It trades at a price-to-projected-earnings ratio of 17 and a price-to-book ratio of 7.9, premiums to peer averages. Its PEG ratio of 1.1 also indicates a premium.

Consensus

: Of analysts covering Coach, 16, or 70%, advise purchasing its shares and seven advocate holding them.

Telsey Advisory Group

values Coach at $51, leaving 21% of potential upside.

Sterne, Agee & Leech

expects the stock to hit $50.

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