Diamond Foods "Diamond Foods announced it has secured a $225 million investment from Oaktree Capital to recapitalize," D.A. Davidson analysts wrote in a May 24 report. "The investment supports Diamond's long-term strategy for growth in the snack business, while enabling the company to reaffirm its leadership position in the walnut industry and further pay down debt. This, along with the final filing of the restated financials (expected in the next couple of weeks), is the last dose of medicine we expect the company to take before resuming its reputation as a high-growth snack foods company." Shares of Diamond Foods hit a 52-week low Monday of $18.83. The stock's 52-week high of $96.13 was set on Sept. 21. Diamond Foods' forward P/E of 7.72; the average for its peers is 18.05. For comparison, Ralcorp ( RAH) has a higher forward P/E of 14.21. Ten of the 12 analysts who cover Diamond rated it hold; two analysts gave the stock a buy rating. The stock has fallen 40.35% year to date.
Canon "We reiterate our Buy rating and keep Canon on our Conviction List," Goldman Sachs analysts wrote in a report on Monday. "The stock is also on our GS Sustain Japan list. Over the past five business days the shares have fallen 7%, far underperforming TOPIX and our precisions coverage. As the yen appreciates, absolute share price correction is to be expected but performance below our coverage average is hard to explain. Laser printers are the most cyclical business in Canon's portfolio--it hit a bottom in Jan-Mar. and we expect it to recover in Apr-June and Jul-Sep. Digital SLR cameras are an earnings mainstay, and the impact of delayed new models should become clear. While we see no spectacular drivers in Canon's business lineup, we expect annual profit growth of around 10% over the medium term on the impact of lower costs combined with 3-4% annual sales growth. We focus on the dividend yield, which is over 4% (total return ratio over 6%) and nearing post-2008 financial crisis levels." Shares of Canon hit a 52-week low on Monday of $37.82. The stock's 52-week high of $50 was set on July 26. Canon's forward P/E is 14.13; the average among its peers is 19.07. Analysts were split on Canon with one rating it buy and another giving the stock a hold rating. The stock has fallen 13.06% year to date.
First Solar "We value First Solar at 8x our 2012 ex-writeoff estimate of $3.80, and 5.5x our 2013 estimate of $5.46," Bank of America Merrill Lynch analysts wrote in a report on May 31. "Although we expect earnings to decline, the company's decision to reduce fixed cost and manufacturing capacity has reduced the rate of decline, and the result is that we see higher earnings and a higher potential earnings multiple. We note that the $30 price objective places the company at a slight discount to anticipated book value of $34 following the scheduled writedowns." Shares of First Solar hit a 52-week low on Monday of $11.43. The stock's 52-week high of $142.22 was set on June 30. Twenty-seven of the 39 analysts who cover First Solar rated it hold. Six analysts gave the stock a sell rating and another six rated it buy. The stock has fallen 64.84% year to date.
RadioShack "Although the Street was anticipating weaker Q1 results, the magnitude of the sequential slowing in U.S. company-operated sales, along with a gloomy outlook for gross margins in the near term, appears to have caught investors by surprise," Credit Suisse analysts wrote in an April 30 report. "We remain concerned that the company's effort to fuel growth in the lower margin mobility category will result in earnings downside beyond Q1. As such, we are reducing our 2012 EPS estimate to $0.38. We are lowering our target price to $5, reflecting 10x our revised 2013 EPS estimate." Shares of RadioShack hit a 52-week low of $4.31. The stock's 52-week high of $16.25 was set on July 26. RadioShack's forward P/E of 9.18; the average among its peers is 12.31. For comparison, Best Buy ( BBY) has a lower forward P/E of 4.37. Fifteen of the 21 analysts who cover RadioShack rated it hold. Five analysts gave the stock a sell rating and one rated it buy. The stock has fallen 55.82% year to date.
Fossil "While the stock appears to have gotten revalued from its peak P/E of 25x, we believe that at $78.52, the stock is likely over-sold," KeyBanc Capital Markets analysts wrote in a May 9 report. "The current stock price implies a 14.8x 2012 P/E multiple based on EPS of $5.30 (low end of guidance), which compares to 16.8x 2012 P/E for the accessories and footwear peer group, and a 12.7x 2013 P/E (based on our revised estimate of $6.20). With half of the 70-75 new store openings in 2012 to be located outside of the United States (mainly Europe), 65-70 additional concession openings in Asia, a jewelry line relaunch in the 2H, and continued strength in the U.S. business, we believe year-over-year double-digit sales momentum should return in the 2H." Shares of Fossil hit a 52-week low of $67.70. The stock's 52-week high of $139.20 was set on April 5. Fossil's forward P/E is 14.84; the average among its peers is 17.04. Eleven of the 16 analysts who cover Fossil rated it buy; five analysts gave the stock a hold rating. The stock has fallen 12.32% year to date.
Yelp "Mgt guided the Street to 2Q12 Revs/Ad. EBITDA at the midpoint of $30M/-650k above the Street's 29.3M/-1.5M," Jefferies analysts wrote in a May 3 report. "For FY12, Mgt. guided the Street to Rev/Adj EBITDA of $130M/breakeven vs. the Street's $124.7M/~breakeven est. We are tweaking our estimates slightly to reflect mgt comments, and maintaining our $23 FY12 target price and Hold rating." Shares of Yelp hit a 52-week low of $14.10 on Monday. The stock's 52-week high of $31.96 was set on March 28. All six of the analysts who cover Yelp rated it hold. The stock has fallen 38.16% year to date.