Hormel Foods The food production and marketing company is scheduled to report second-quarter results on May 23. Analysts, on average, expect earnings of 42 cents a share on revenue of $2.05 billion. "Management has put together a compelling argument for why investors areoverestimating the company's exposure to volatility in the commodity marketsand underestimating the potential for earnings growth off of 'peak' levels," Credit Suisse analysts wrote in an April 3 report. "But let's face it; these efforts have proven largely futile. The stock remains mired at P/E valuation below 9x." Forward Annual Dividend Yield: 2.1% Rated "A- (Buy)" by TheStreet Ratings: The company's first-quarter gross profit margin decreased from the previous year. Hormel Foods has average liquidity. Its Quick Ratio is 1.45, which shows the company can technically meet short-term cash needs. In the first quarter, stockholders' net worth increased 7.34% from the prior year. TheStreet Ratings' price target is $34.25.
Weight Watchers The weight loss company reported on March 28 the results of its modified Dutch auction in which Weight Watchers accepted 8.78 million shares for $82 a share, a total about $720 million. "WTW's pre-tender 2012 EPS outlook was slightly lower than expected at $4.20-$4.60, but simultaneously, WTW announced a modified Dutch auction, repurchasing nearly a quarter of the company with debt, demonstrating the power of WTW's cash flow capabilities," Bank of America Merrill Lynch analysts wrote in an April 2 report. "We estimate 45c of accretion from the tender in 2012, but continued benefit in '13 and beyond as WTW de-levers with cash flow." Forward Annual Dividend Yield: 0.9% Rated "B- (Buy)" by TheStreet Ratings: The company's fourth-quarter gross profit margin increased from the previous year. Weight Watchers has very weak liquidity. Its Quick Ratio is 0.19, which demonstrates a lack of ability to meet its short-term cash needs. In the fourth quarter, stockholders' net worth increased 41.02% from the prior year. TheStreet Ratings' price target is $97.43.