price to sales ratio
VISA INC. $217 (New York symbol V; Conservative Growth Portfolio, Finance sector; Shares outstanding: 636.6 million; Market cap: $138.1 billion; Price-to-sales ratio: 12.3; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.visa.com) is gaining from rising online shopping and higher credit and debit card use, particularly overseas. The company also has no credit risk.
Moreover, Visa stands to benefit from the recent theft of credit card data from Target and Neiman Marcus. These incidents could spur new regulations that would force retailers to install chip-based card readers, which are more secure than magnetic-swipe devices and would cut down on fraud. Retailers would probably have to pay for these upgrades, not Visa.
Visa is a buy....
Moreover, Visa stands to benefit from the recent theft of credit card data from Target and Neiman Marcus. These incidents could spur new regulations that would force retailers to install chip-based card readers, which are more secure than magnetic-swipe devices and would cut down on fraud. Retailers would probably have to pay for these upgrades, not Visa.
Visa is a buy....
MCDONALD’S CORP. $93 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 995.0 million; Market cap: $92.5 billion; Price-to-sales ratio: 3.4; Dividend yield: 3.5%; TSINetwork Rating: Above Average; www.mcdonalds.com) stands to rebound strongly from a slow 2013 as it builds more outlets in Asia, Africa and other fast-growing regions. Healthier menu items and premium coffees are also helping it attract new customers. However, a higher minimum wage in the U.S. would hurt its profits.
McDonald’s is a buy.
McDonald’s is a buy.
GOOGLE INC. $1,107 (Nasdaq symbol GOOG; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 334.1 million; Market cap: $369.8 billion; Price-to-sales ratio: 6.4; No dividends paid; TSINetwork Rating: Above Average; www.google.com) continues to profit from the shift to online advertising, even though it is earning less per ad. That’s because advertisers are paying less for ads on mobile devices, since they are more difficult to see on smaller screens.
However, Google’s Android software powers 80% of all mobile devices. That’s driving more traffic to its web sites. Google is also selling ads in bundles that cover multiple devices.
Google is a buy.
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However, Google’s Android software powers 80% of all mobile devices. That’s driving more traffic to its web sites. Google is also selling ads in bundles that cover multiple devices.
Google is a buy.
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CONAGRA FOODS INC. $32 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 420.4 million; Market cap: $13.4 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.1%; TSINetwork Rating: Above Average; www.- conagrafoods.com) is facing strong competition from other processed food makers, which has slowed its earnings growth. Even so, the stock has held up well since we made it our #1 buy for 2013.
The company continues to cut costs— including through a new flour-milling joint venture— after last year’s purchase of private-label food maker Ralcorp. These savings will help offset the loss of a big corporate customer. Moreover, ConAgra trades at a moderate 13.6 times its projected fiscal 2014 earnings of $2.35 a share. The stock yields a high 3.1%.
ConAgra is a buy.
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The company continues to cut costs— including through a new flour-milling joint venture— after last year’s purchase of private-label food maker Ralcorp. These savings will help offset the loss of a big corporate customer. Moreover, ConAgra trades at a moderate 13.6 times its projected fiscal 2014 earnings of $2.35 a share. The stock yields a high 3.1%.
ConAgra is a buy.
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TUPPERWARE BRANDS CORP. $79 (New York symbol TUP; Conservative Growth and Income Portfolios, Consumer sector; Shares outstanding: 50.7 million; Market cap: $4.0 billion; Price-to-sales ratio: 1.7; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.tupperwarebrands.com) is up 68.1% since we named it as our #1 buy for 2011.
The company continues to benefit from strong demand for its plastic food containers and beauty products in emerging markets such as Asia and South America, which now supply 45% of its total sales. That’s helping it offset weaker sales in North America and Europe.
Tupperware’s sales rose 3.4% in 2013, to $2.7 billion from $2.6 billion in 2012. If you disregard the negative impact of foreign exchange rates, sales rose 6%. Excluding costs related to plant closures and other unusual items, earnings gained 2.5%, to $288.3 million from $281.4 million. Due to fewer shares outstanding, earnings per share rose 8.8%, to $5.43 from $4.99.
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The company continues to benefit from strong demand for its plastic food containers and beauty products in emerging markets such as Asia and South America, which now supply 45% of its total sales. That’s helping it offset weaker sales in North America and Europe.
Tupperware’s sales rose 3.4% in 2013, to $2.7 billion from $2.6 billion in 2012. If you disregard the negative impact of foreign exchange rates, sales rose 6%. Excluding costs related to plant closures and other unusual items, earnings gained 2.5%, to $288.3 million from $281.4 million. Due to fewer shares outstanding, earnings per share rose 8.8%, to $5.43 from $4.99.
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CAE INC. $13 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.5 million; Market cap: $3.4 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) is the world’s leading maker of flight simulators for commercial airlines, with 70% of the market. It also makes simulators for military clients. The company began training pilots for its customers in 2001 and now has over 100 flight schools in 30 countries.
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METRO INC. $63 (Toronto symbol MRU; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 91.7 million; Market cap: $5.8 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.metro.ca) plans to close its produce and dairy distribution facility in St-Augustin-de-Desmaures, Quebec, and shift these operations to its recently opened plant in Laval.
The company will complete this move in March 2014. It did not say how much it will have to pay in severance or other expenses. However, the plant closure will help Metro cut its operating costs and compete with larger supermarket chains.
Metro is a buy....
The company will complete this move in March 2014. It did not say how much it will have to pay in severance or other expenses. However, the plant closure will help Metro cut its operating costs and compete with larger supermarket chains.
Metro is a buy....
SAPUTO INC. $47 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 194.3 million; Market cap: $9.1 billion; Price-to-sales ratio: 1.1; Dividend yield: 1.8%; TSINetwork Rating: Average; www.saputo.com) recently agreed to a friendly takeover of Warrnambool Cheese and Butter Factory, one of Australia’s largest producers of milk, cheese, butter and other dairy products. However, hostile offers from Australian dairy firms have forced Saputo to increase its original bid by 31%.
Australian competition regulators have now blocked Saputo from increasing its 9.6% stake in Warrnambool for the next two months. That will give them time to determine whether these rival bidders, if successful, would gain an overwhelming share of Australia’s dairy market.
Saputo is still a hold....
Australian competition regulators have now blocked Saputo from increasing its 9.6% stake in Warrnambool for the next two months. That will give them time to determine whether these rival bidders, if successful, would gain an overwhelming share of Australia’s dairy market.
Saputo is still a hold....
BOMBARDIER INC. (Toronto symbols BBD.A $4.52 and BBD.B $4.50; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.8 billion; Market cap: $8.1 billion; Price-to-sales ratio: 0.4; Dividend yield: 2.2%; TSINetwork Rating: Average; www.bombardier.com) has won an order for five of its new CSeries passenger jets from Iraqi Airways. This client also has options to buy 11 additional planes.
The company now has 182 firm orders for the CSeries. If buyers exercised their options for 237 more planes, these orders would total roughly $32 billion U.S. Bombardier expects to begin deliveries by the end of 2014.
Bombardier B stock is a buy....
The company now has 182 firm orders for the CSeries. If buyers exercised their options for 237 more planes, these orders would total roughly $32 billion U.S. Bombardier expects to begin deliveries by the end of 2014.
Bombardier B stock is a buy....
AGRIUM INC. $95 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 144.5 million; Market cap: $13.7 billion; Price-to-sales ratio: 0.8; Dividend yield: 3.4%; TSINetwork Rating: Average; www.agrium.com) gets two-thirds of its revenue—but just a third of its earnings—from its retail stores, which sell seeds, fertilizers and other products to farmers. It also makes nitrogen-based fertilizer.
Agrium’s retail division is shielding it from volatile fertilizer prices. In the third quarter of 2013, overall sales rose 1.3%, to $2.9 billion from $2.8 billion a year ago (all amounts except share price and market cap in U.S. dollars). A 15.0% retail sales gain offset a 23.7% fertilizer sales drop. Earnings per share fell 37.5%, to $0.50 from $0.80, due to unplanned outages at its nitrogen plants.
Weak fertilizer prices will probably cut Agrium’s 2013 earnings by 20.4%, to $7.60 a share from $9.55 in 2012. The stock trades at 11.8 times that estimate. The $3.00 dividend yields 3.4%.
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Agrium’s retail division is shielding it from volatile fertilizer prices. In the third quarter of 2013, overall sales rose 1.3%, to $2.9 billion from $2.8 billion a year ago (all amounts except share price and market cap in U.S. dollars). A 15.0% retail sales gain offset a 23.7% fertilizer sales drop. Earnings per share fell 37.5%, to $0.50 from $0.80, due to unplanned outages at its nitrogen plants.
Weak fertilizer prices will probably cut Agrium’s 2013 earnings by 20.4%, to $7.60 a share from $9.55 in 2012. The stock trades at 11.8 times that estimate. The $3.00 dividend yields 3.4%.
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