Abercrombie, China Telecom Slump to 52-Week Lows

NEW YORK ( TheStreet) -- Abercrombie & Fitch ( ANF) and China Telecom ( CHA) sank to 52-week lows on Wednesday.

Abercrombie & Fitch

The retailer reported on Wednesday first-quarter net income of $3 million, or 3 cents a share, down from year-earlier earnings of $25.1 million, or 28 cents.

Abercrombie was forecast by analysts to post first-quarter profit of 2 cents a share.

"The deterioration in international sales trends is concerning, especially given the company's aggressive growth plans in Europe and adds further uncertainty to the story," Wells Fargo analysts wrote in a report on Wednesday. "However, the company is using other levers to deliver EPS and the depressed valuation already reflects these trends, in our view."

Shares of Abercrombie & Fitch hit a 52-week low on Wednesday of $38.71. The stock's 52-week high of $78.25 was set on June 21.

Abercrombie & Fitch trades at an estimated price-to-earnings ratio for next year of 8.62 times; the average for apparel retailers is 14.28. For comparison, Urban Outfitters ( URBN) has a higher forward P/E of 14.8.

Eighteen of the 34 analysts who cover Abercrombie rated it hold. Fourteen analysts rated the stock a buy and two gave the stock a sell rating.

The stock has fallen 21.29% year to date.

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China Telecom

"Management indicates that CDMA network buyback is under progress and is expected to be finished at the end of this year," Jefferies analysts wrote in a May 3 report. "The specific plan may be disclosed in mid-2012 after earnings are released. The price depends on the book value of the network after official evaluation and auditing, and negotiation between listco and Parenco. We are modelling positive impact to earnings from the buyback deal starting from 2013."

Shares of China Telecom hit a 52-week low of $49.22 on Wednesday. The stock's 52-week high of $67.97 was set on Sept. 20.

China Telecom's forward P/E is 12.53; the average for fixed-line telecommunications companies is 14.1.

Three of the five analysts who cover China Telecom rated it buy; two analysts gave the stock a hold rating.

The stock has fallen 13.53% year to date.

-- Written by Alexandra Zendrian

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