Avon, Textron: S&P Gainers

NEW YORK ( TheStreet) -- Avon Products ( AVP) and Textron ( TXT) were among the best performers in the S&P 500 on Monday.

The S&P 500 rose 10.43 points, or 0.74%, to 1,418.90.

Shares of Avon rose 17.25% Monday to $22.70. Beauty firm Coty put in a non-binding bid to purchase Avon for about $10 billion, or $23.25 a share. The offer is a 27% premium over the three-month, volume-weighted average price of Avon, Coty said. Avon rejected the bid.

"Coty's indication of interest is non-binding and, by its own terms, subject to numerous conditions such as financing, due diligence and the negotiation of a definitive agreement," Avon said in a statement. "Coty's letter to Avon dated March 30 alludes to the possibility that, following diligence, Coty reserves the right to raise or lower its price to acquire Avon. In the final analysis, Coty is attempting to obtain a 'free look' at Avon in the absence of any commitment whatsoever to close a transaction at any price."

The stock gapped up Monday morning to $23.16 from its closing price Friday of $19.36.

Avon shares trade at an estimated price-to-earnings ratio for next year of 13.45X; the average for personal products companies is 15.87X. For comparison, Kimberly-Clark ( KMB) and Colgate-Palmolive ( CL) both have higher forward P/Es of 13.56X and 16.69X.

Twelve of the 16 analysts who cover Avon rate it at hold; four analysts give the stock a buy rating.

TheStreet Ratings gives Avon a C grade and hold rating. The stock has risen 39.94% year to date.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Textron shares gained 3.63% to $28.84. The company's AAI Test & Training unit got a $6.1 million contract from Robins Air Force Base to create new Joint Service Electronic Combat Systems Tester systems.

The stock hit a 52-week high of $29.08 on Monday. The stock's 52-week low of $14.66 was set on Aug. 26.

Textron shares trade at a forward P/E of 12.2X; the average for aerospace companies is 13.45X. For comparison, United Technologies and Boeing ( BA) both have higher forward P/Es of 12.48X and 13.33X, respectively.

Ten of the 16 analysts who cover Textron rate it at buy. Five analysts give the stock a hold rating and one rates it at sell.

TheStreet Ratings gives Textron a C+ grade and hold rating. The stock has risen 55.98% year to date.


Other top-performing S&P 500 stocks on Monday included:
  • Tripadvisor (TRIP): The stock increased 4.77% Monday to $37.37. The stock has risen 48.23% year to date.
  • Hartford Financial Services Group (HIG): The stock rose 4.13% Monday to $21.95. The stock has increased 35.08% year to date. TheStreet Ratings gives Hartford Financial Services Group a B- grade with a buy rating and $35.08 price target.
  • Abercrombie & Fitch (ANF): The stock increased 4.05% Monday to $51.62. The stock has risen 5.69% year to date. TheStreet Ratings gives Abercrombie & Fitch a C+ grade and hold rating.
  • Denbury Resources (DNR): The stock rose 3.68% Monday to $18.90. The stock has risen 25.17% year to date. TheStreet Ratings gives Denbury Resources a B grade with a buy rating and $21.01 price target.
  • QEP Resources (QEP): The stock increased 3.44% Monday to $31.55. The stock has risen 7.68% year to date. TheStreet Ratings gives QEP Resources a C grade and hold rating.
  • Apple (AAPL): The stock rose 3.18% Monday to $618.63. The stock has increased 52.75% year to date. TheStreet Ratings gives Apple an A+ grade with a buy rating and $792.18 price target.
  • U.S. Steel (X): The stock increased 3.03% Monday to $30.26. The stock has risen 14.36% year to date. TheStreet Ratings gives U.S. Steel a D+ grade and sell rating.
  • Western Union (WU): The stock rose 3.01% to $18.13. The stock has ticked down 13 cents, or 0.71% year to date. TheStreet Ratings gives Western Union a B grade with a buy rating and $20.64 price target.

-- Written by Alexandra Zendrian in New York.

>To contact the writer of this article, click here: Alexandra Zendrian

>To submit a news tip, send an email to: tips@thestreet.com.

>To follow the writer on Twitter, go to Alexandra Zendrian.