Following is top 10 companies to invest in 2012:
Top 10 Companies To Invest In 2012#10. Tesoro is an oil and gas refiner. Its stock has risen 27% so far in 2011. It has more than doubled in the past 12 months.
Tesoro swung to a modest fourth-quarter profit of $3 million, or two cents a share, from a loss of $179 million, or $1.30, a year earlier. Its revenue grew 20%. The operating margin climbed from negative territory to 0.3%. Tesoro’s stock is still cheap, selling for a forward earnings multiple of 11, a book value multiple of 1.1 and a sales multiple of 0.2, 40%, 75% and 94% discounts to oil and gas industry averages.
12-Month Sales Growth: 23%
12-Month Net Income Growth: 79%
12-Month Earnings Per Share Growth: 77%
Top 10 Companies To Invest In 2012#9. Big Lots is a closeout retailer, selling food, health and beauty and furniture products. Its stock has rallied 30% in 2011, in part due to takeover rumors.
Management is exploring a sale, possibly to private equity investors. Big Lots’ fiscal third-quarter net income dropped 42% and earnings per share fell 38%, cushioned by a smaller float. Revenue inched up 2%. The operating margin contracted from 3.3% to 2.6%. Big Lots’ stock sells for a trailing P/E of 15 and a forward P/E of 13, 27% and 33% peer discounts. It’s expensive based on book value and cash flow.
12-Month Sales Growth: 5.7%
12-Month Net Income Growth: 25%
12-Month Earnings Per Share Growth: 24%
Top 10 Companies To Invest In 2012#8. Level 3 is an alternative telecom-carrier. Its stock has advanced 39% in 2011.
Level 3′s fourth-quarter net loss decreased 71% to $52 million, or three cents a share, as revenue declined marginally to $921 million. The operating margin rose from negative 4.6% to negative 0.4% during the latest quarter. Level 3 is running a shareholders’ deficit of $157 million. Its stock sells for a sales multiple of 0.6 and a cash flow multiple of 6.7, sizable discounts to peer averages. The stock receives “buy” ratings from just 8% of analysts.
12-Month Sales Growth: -3.0%
12-Month Net Income Growth: -0.6%
12-Month Earnings Per Share Growth: 0.0%
Top 10 Companies To Invest In 2012#7. HealthSpring is a managed health-care company. Its stock has appreciated 40% in 2011.
HealthSpring’s fourth-quarter net income soared 45% to $51 million, or 88 cents a share. Revenue grew 30% to $882 million. The operating margin ascended from 10% to 11%. HealthSpring’s stock trades at a trailing earnings multiple of 11, a forward earnings multiple of 8.9, a book value multiple of 1.8 and a cash flow multiple of 9.5, 36%, 41%, 43% and 16% discounts to industry averages. Its PEG ratio of 0.9 indicates a 10% discount, based on estimated long-run growth.
12-Month Sales Growth: 18%
12-Month Net Income Growth: 45%
12-Month Earnings Per Share Growth: 41%
Top 10 Companies To Invest In 2012#6. Aruba Networkssells communications equipment, which connects users to corporate technology resources through enterprise networks. Its stock has returned 41% so far in 2011.
Aruba’s fiscal second-quarter loss decreased 36% to $2.8 million, or three cents a share. Revenue climbed 50% to $94 million. The operating margin improved from negative 6.3% to negative 2.8%. Aruba’s stock is exorbitant, costing 41-times forward earnings, 13-times book value, 9.1-times sales and 61-times cash flow. Still, 47% of researchers rank the stock “buy.”
12-Month Sales Growth: 47%
12-Month Net Income Growth: 86%
12-Month Earnings Per Share Growth: 84%
Top 10 Companies To Invest In 2012#5. Manitowoc makes cranes and foodservice equipment. Its stock has soared 45% in 2011.
Manitowoc’s fourth-quarter net loss more than doubled to $64 million, or 41 cents a share, from $24 million, or 17 cents, a year earlier. Revenue declined 1% to $831 million. The operating margin widened from 4.4% to 6.4%. Manitowoc’s stock trades at a forward earnings multiple of 13, a sales multiple of 0.8 and a cash flow multiple of 12, 22%, 49% and 24% discounts to industrial machinery industry averages.
12-Month Sales Growth: -17%
12-Month Net Income Growth: 90%
12-Month Earnings Per Share Growth: 90%
Top 10 Companies To Invest In 2012#4. IPG Photonics makes fiber lasers and amplifiers, used by materials processing, telecom and medical companies. Its stock has surged 62% in 2011 and has more than tripled in 12 months.
IPG’s scheduled to release fourth-quarter results today. Its third-quarter profit more than quintupled to $13 million, or 28 cents a share, as revenue jumped 74% to $80 million. The operating margin rose from 7.9% to 28%. IPG’s stock is pricey, selling for 28-times forward earnings, 8.1-times book value, 9.2-times sales and 51-times cash flow, peer premiums.
12-Month Sales Growth: 33%
12-Month Net Income Growth: 165%
12-Month Earnings Per Share Growth: 156%
Top 10 Companies To Invest In 2012#3. Weight Watchers provides weight-management services worldwide. Its stock has soared 66% in 2011 and has doubled in 12 months.
Fourth-quarter net income more than doubled to $49 million, or 66 cents a share, as revenue gained 15% to $357 million. The operating margin narrowed from 28% to 27%. The stock trades at a forward earnings multiple of 15, a 13% peer discount. But, it’s expensive based on sales. The company is running a shareholders’ deficit. It receives “buy” calls from 29% of analysts.
12-Month Sales Growth: 3.8%
12-Month Net Income Growth: 9.5%
12-Month Earnings Per Share Growth: 12%
Top 10 Companies To Invest In 2012#2. JDS Uniphase sells communications test and measurement solutions and optical products to telecom, cable and tech companies. Its stock is up 67% in 2011. It has doubled in 12 months.
JDS Uniphase swung to a fiscal second-quarter profit of $24 million, or 10 cents a share, from a loss of $20 million, or nine cents, a year earlier. Revenue grew 38% to $474 million. The operating margin rose from negative territory to 7.9%. JDS is pricey, costing 21-times forward earnings, 5.5-times book value and 33-times cash flow, significant premiums to peers.
12-Month Sales Growth: 34%
12-Month Net Income Growth: 106%
12-Month Earnings Per Share Growth: 106%
Top 10 Companies To Invest In 2012#1. Fannie Mae is a government-sponsored enterprise, providing liquidity in the mortgage market and improving housing affordability. The U.S. government owns roughly 79% of its equity.
Fannie Mae’s third-quarter net loss decreased 93% to $1.3 billion, or 61 cents a share, from nearly $19 billion, or $3.47, a year earlier. The operating margin turned positive. Fannie Mae’s stock trades at a significant discount to financial peers, but remains reliant on the support of the federal government. Still, the company’s fundamentals are clearly improving.
12-Month Sales Growth: 230%
12-Month Net Income Growth: 64%
12-Month Earnings Per Share Growth: 57%
Top 10 Companies To Invest In 2012#10. Tesoro is an oil and gas refiner. Its stock has risen 27% so far in 2011. It has more than doubled in the past 12 months.
Tesoro swung to a modest fourth-quarter profit of $3 million, or two cents a share, from a loss of $179 million, or $1.30, a year earlier. Its revenue grew 20%. The operating margin climbed from negative territory to 0.3%. Tesoro’s stock is still cheap, selling for a forward earnings multiple of 11, a book value multiple of 1.1 and a sales multiple of 0.2, 40%, 75% and 94% discounts to oil and gas industry averages.
12-Month Sales Growth: 23%
12-Month Net Income Growth: 79%
12-Month Earnings Per Share Growth: 77%
Top 10 Companies To Invest In 2012#9. Big Lots is a closeout retailer, selling food, health and beauty and furniture products. Its stock has rallied 30% in 2011, in part due to takeover rumors.
Management is exploring a sale, possibly to private equity investors. Big Lots’ fiscal third-quarter net income dropped 42% and earnings per share fell 38%, cushioned by a smaller float. Revenue inched up 2%. The operating margin contracted from 3.3% to 2.6%. Big Lots’ stock sells for a trailing P/E of 15 and a forward P/E of 13, 27% and 33% peer discounts. It’s expensive based on book value and cash flow.
12-Month Sales Growth: 5.7%
12-Month Net Income Growth: 25%
12-Month Earnings Per Share Growth: 24%
Top 10 Companies To Invest In 2012#8. Level 3 is an alternative telecom-carrier. Its stock has advanced 39% in 2011.
Level 3′s fourth-quarter net loss decreased 71% to $52 million, or three cents a share, as revenue declined marginally to $921 million. The operating margin rose from negative 4.6% to negative 0.4% during the latest quarter. Level 3 is running a shareholders’ deficit of $157 million. Its stock sells for a sales multiple of 0.6 and a cash flow multiple of 6.7, sizable discounts to peer averages. The stock receives “buy” ratings from just 8% of analysts.
12-Month Sales Growth: -3.0%
12-Month Net Income Growth: -0.6%
12-Month Earnings Per Share Growth: 0.0%
Top 10 Companies To Invest In 2012#7. HealthSpring is a managed health-care company. Its stock has appreciated 40% in 2011.
HealthSpring’s fourth-quarter net income soared 45% to $51 million, or 88 cents a share. Revenue grew 30% to $882 million. The operating margin ascended from 10% to 11%. HealthSpring’s stock trades at a trailing earnings multiple of 11, a forward earnings multiple of 8.9, a book value multiple of 1.8 and a cash flow multiple of 9.5, 36%, 41%, 43% and 16% discounts to industry averages. Its PEG ratio of 0.9 indicates a 10% discount, based on estimated long-run growth.
12-Month Sales Growth: 18%
12-Month Net Income Growth: 45%
12-Month Earnings Per Share Growth: 41%
Top 10 Companies To Invest In 2012#6. Aruba Networkssells communications equipment, which connects users to corporate technology resources through enterprise networks. Its stock has returned 41% so far in 2011.
Aruba’s fiscal second-quarter loss decreased 36% to $2.8 million, or three cents a share. Revenue climbed 50% to $94 million. The operating margin improved from negative 6.3% to negative 2.8%. Aruba’s stock is exorbitant, costing 41-times forward earnings, 13-times book value, 9.1-times sales and 61-times cash flow. Still, 47% of researchers rank the stock “buy.”
12-Month Sales Growth: 47%
12-Month Net Income Growth: 86%
12-Month Earnings Per Share Growth: 84%
Top 10 Companies To Invest In 2012#5. Manitowoc makes cranes and foodservice equipment. Its stock has soared 45% in 2011.
Manitowoc’s fourth-quarter net loss more than doubled to $64 million, or 41 cents a share, from $24 million, or 17 cents, a year earlier. Revenue declined 1% to $831 million. The operating margin widened from 4.4% to 6.4%. Manitowoc’s stock trades at a forward earnings multiple of 13, a sales multiple of 0.8 and a cash flow multiple of 12, 22%, 49% and 24% discounts to industrial machinery industry averages.
12-Month Sales Growth: -17%
12-Month Net Income Growth: 90%
12-Month Earnings Per Share Growth: 90%
Top 10 Companies To Invest In 2012#4. IPG Photonics makes fiber lasers and amplifiers, used by materials processing, telecom and medical companies. Its stock has surged 62% in 2011 and has more than tripled in 12 months.
IPG’s scheduled to release fourth-quarter results today. Its third-quarter profit more than quintupled to $13 million, or 28 cents a share, as revenue jumped 74% to $80 million. The operating margin rose from 7.9% to 28%. IPG’s stock is pricey, selling for 28-times forward earnings, 8.1-times book value, 9.2-times sales and 51-times cash flow, peer premiums.
12-Month Sales Growth: 33%
12-Month Net Income Growth: 165%
12-Month Earnings Per Share Growth: 156%
Top 10 Companies To Invest In 2012#3. Weight Watchers provides weight-management services worldwide. Its stock has soared 66% in 2011 and has doubled in 12 months.
Fourth-quarter net income more than doubled to $49 million, or 66 cents a share, as revenue gained 15% to $357 million. The operating margin narrowed from 28% to 27%. The stock trades at a forward earnings multiple of 15, a 13% peer discount. But, it’s expensive based on sales. The company is running a shareholders’ deficit. It receives “buy” calls from 29% of analysts.
12-Month Sales Growth: 3.8%
12-Month Net Income Growth: 9.5%
12-Month Earnings Per Share Growth: 12%
Top 10 Companies To Invest In 2012#2. JDS Uniphase sells communications test and measurement solutions and optical products to telecom, cable and tech companies. Its stock is up 67% in 2011. It has doubled in 12 months.
JDS Uniphase swung to a fiscal second-quarter profit of $24 million, or 10 cents a share, from a loss of $20 million, or nine cents, a year earlier. Revenue grew 38% to $474 million. The operating margin rose from negative territory to 7.9%. JDS is pricey, costing 21-times forward earnings, 5.5-times book value and 33-times cash flow, significant premiums to peers.
12-Month Sales Growth: 34%
12-Month Net Income Growth: 106%
12-Month Earnings Per Share Growth: 106%
Top 10 Companies To Invest In 2012#1. Fannie Mae is a government-sponsored enterprise, providing liquidity in the mortgage market and improving housing affordability. The U.S. government owns roughly 79% of its equity.
Fannie Mae’s third-quarter net loss decreased 93% to $1.3 billion, or 61 cents a share, from nearly $19 billion, or $3.47, a year earlier. The operating margin turned positive. Fannie Mae’s stock trades at a significant discount to financial peers, but remains reliant on the support of the federal government. Still, the company’s fundamentals are clearly improving.
12-Month Sales Growth: 230%
12-Month Net Income Growth: 64%
12-Month Earnings Per Share Growth: 57%
