6 Ex-Dividend Stocks With Buy Ratings

NEW YORK ( TheStreet) -- The following stocks go ex-dividend Wednesday, meaning an investor must purchase the shares Tuesday to qualify for the next dividend payment: PepsiCo ( PEP), Qualcomm ( QCOM), Goodrich ( GR), Lear ( LEA), Dick's Sporting Goods ( DKS) and Finish Line ( FINL).

Each of the stocks is rated buy at TheStreet Ratings.

PepsiCo

The soft drink maker reported earlier this month fourth-quarter earnings of $1.4 billion, or 89 cents a share, up from year-ago earnings of $1.37 billion, or 85 cents.

Wells Fargo analysts, following Pepsi's presentation at the Consumer Analyst Group of New York conference, said, "We came away from the presentation more confident that PEP can improve growth in FLNA in 2012, but still cautious on the N.A. beverage business. We continue to believe the shares will stay range bound at current levels until PEP can show some traction in its N.A. beverage business or consistency in achieving new financial targets."

Forward Annual Dividend Yield: 3.3%

Rated "A- (Buy)" at TheStreet Ratings: The company's fourth-quarter gross profit margin was basically the same as it was last year.

PepsiCo has weak liquidity. Its Quick Ratio is 0.62, which demonstrates a lack of ability to meet its short-term cash needs.

In the fourth quarter, stockholders' net worth decreased 2.72% from the prior year.

TheStreet Ratings' price target is $72.92. The stock closed Monday at $63.32 and has fallen 4.57% year to date.

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Qualcomm

The telecommunications company reported this month second-quarter earnings of $1.4 billion, or 81 cents a share, up from year-ago earnings of $1.17 billion, or 71 cents.

"We believe Qualcomm is well positioned to post strong earnings growth during F2012 and F2013 due to stable royalty rates, strong connected tablet and smartphone sales, increasing market share for integrated chipsets, and accelerating 3G device sales in emerging markets," Canaccord analysts wrote in a report Monday.

Forward Annual Dividend Yield: 1.4%

Rated "A+ (Buy)" by TheStreet Ratings: The company's first-quarter gross profit margin decreased from the prior year.

Qualcomm is extremely liquid. Its Quick Ratio is 2.52, which shows the company can meet its short-term cash needs.

In the first quarter, stockholders' net worth increased 25.26% from the previous year.

TheStreet Ratings' price target is $76.62. The stock closed Monday at $63.31 and has risen 15.74% year to date.


Goodrich

The aerospace components company reported earlier this month fourth-quarter earnings of $237.9 million, or $1.85 a share, up from year-ago earnings of $148.3 million, or $1.16.

"The company stated that the merger with United Technologies (UTX-Not Covered) is still on target to close by mid 2012," Wedbush analysts wrote in a Feb. 3 report. "Goodrich and UTC continue to work through the regulatory procedures, which appear to be going well, although it is still early. We believe that the merger will get approved with the risk to the transaction being lying predominantly on the financing side. Should the equity markets become worse, we see risk with UTC proceeding with the equity offering."

Forward Annual Dividend Yield: 0.9%

Rated "A+ (Buy)" by TheStreet Ratings: The company's fourth-quarter gross profit margin increased from the prior year.

Goodrich has average liquidity. Its Quick Ratio is 1.12, which shows the company can technically meet its short-term cash needs.

In the fourth quarter, stockholders' net worth increased 10.55% from the prior year.

TheStreet Ratings' price target is $165.22. The stock closed Monday at $125.98 and has increased 1.84% year to date.

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Dick's Sporting Goods

The athletic retailer's stock hit a 52-week high on Friday.

"We believe DKS is poised for a solid 2012 as gross margin expansion opportunities abound," Canaccord analysts wrote in a Feb. 7 report. "SKU rationalization by Academy Sports, reduced vendor visibility, and active gross margin support from key vendors should all benefit DKS via richer gross margins."

Forward Annual Dividend Yield: 1.1%

Rated "B+ (Buy)" at TheStreet Ratings: The company's third-quarter gross profit margin was about the same as it was last year.

Dick's Sporting Goods has weak liquidity. Its Quick Ratio is 0.57, which demonstrates a lack of ability to meet its short-term cash needs.

In the third quarter, stockholders' net worth increased 27.82% from the prior year.

TheStreet Ratings' price target is $55.63. The stock closed Monday at $45.20 and has risen 22.56% year to date.


Finish Line

The athletic retailer is scheduled to report fourth-quarter earnings on March 29. Analysts, on average, anticipate earnings of 79 cents a share on revenue of $429.4 million.

"The recent acquisition of The Running Company adds to its high mix of runningassortment which has secular tailwinds," Deutsche Bank analysts wrote in a Feb. 17 report. "While shares have traded well YTD, we see additional upside ahead and initiate coverage with a Buy rating and $28 PT."

Forward Annual Dividend Yield: 1%

Rated "B (Buy)" by TheStreet Ratings: The company's third-quarter gross profit margin was basically the same as the prior year.

Finish Line has strong liquidity. Its Quick Ratio is 1.55, which shows the company can meet its short-term cash needs.

In the third-quarter, stockholders' net worth increased 6.22% from the previous year.

TheStreet Ratings' price target is $28.60. The stock closed Monday at $23.30 and has risen 20.82% year to date.

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-- Written by Alexandra Zendrian

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