price to sales ratio

TORONTO-DOMINION BANK $82 (Toronto symbol TD; Conservative Growth Portfolio, Finance sector; Shares outstanding: 916.1 million; Market cap: $75.1 billion; Price-to-sales ratio: 2.5; Dividend yield: 3.8%; Stonework Rating: Above Average;www.td.com) recently agreed to buy the U.S. credit card portfolio of retailer Target Corp. (New York symbol TGT). TD will pay an amount equal to these loans’ $5.9-billion U.S. value. In addition, under a new seven-year deal, TD will become the exclusive issuer of Target-branded cards in the U.S.

Meanwhile, the bank earned $7.1 billion (Canadian)in its 2012 fiscal year. That’s up 10.0% from$6.4 billion in fiscal 2011. Because of more shares outstanding, earnings per share rose at a slower pace of 8.2%, to $7.42 from $6.86. Revenue increased6.7%, to $23.1 billion from $21.7 billion.

Earnings at TD’s Canadian retail banking division(which supplies 49% of the bank’s total earnings) rose 11.7% thanks to strong loan demand and the bank’s purchase of MBNA’s Canadian credit card operations. High loan demand also pushed up earnings at the U.S. division (20% of the total) by 12.0%. The wealth management division’s earnings (19%) rose 4.0%. Earnings from securities trading (12%) increased 8.0% as low interest rates prompted businesses to issue more bonds.

...

ROYAL BANK OF CANADA $61 (Toronto symbol RY; Conservative Growth Portfolio, Finance sector; Shares outstanding: 1.5 billion; Market cap:$91.5 billion; Price-to-sales ratio: 2.4; Dividend yield:3.9%; TSI Network Rating: Above Average;www.rbc.com) is Canada’s largest bank by market cap. It earned a record $7.6 billion, or $4.96 a share, in its 2012 fiscal year, which ended October 31,2012. That’s up 8.9% from $7.0 billion, or $4.55 a share, in fiscal 2011. Revenue rose 7.7%, to $29.8billion from $27.6 billion.

The bank continues to report strong loan demand at its retail banking operations in Canada, the U.S. and the Caribbean. This division’s earnings, which accounted for 56% of Royal’s total, rose 9.3%.Earnings from securities trading (22% of overall earnings) rose 22.4% due to higher income from bond trading. The insurance division’s earnings (10%) climbed19.0% due to fewer claims.

These gains offset a 5.9%earnings decline at Royal’s wealth management business(11% of the total). Earnings at the investor and treasury services division (1%) fell 63.0%.That’s because of a loss related to the purchase of 50% of joint venture that the bank didn’t already own. Without this loss, this business’s earnings would have risen by 30%.

...

TECK RESOURCES LTD. $37 (Toronto symbol TCK.B;Conservative Growth Portfolio, Resources sector; Shares outstanding: 586.0 million; Market cap: $21.7 billion; Price-to sales ratio: 2.0; Dividend yield: 2.4%; TSI Network Rating: Average; www.teck.com) is a leading producer of metallurgical coal, a key ingredient in steel making. Its six coal mines (five inB.C. and one in Alberta) should last from six to 75 years.

Asian customers buy 60% of the company’s coal. In 2011,coal accounted for 49% of Teck’s revenue and 57% of its earnings.

Teck also produces copper (27%, 28%), which its clients in Asia and Europe use to make electrical wire, auto parts and components for electronic devices. As well, Teck is a major supplier of zinc (24%, 15%), which prevents rusting when added to steel.

...

We’ve chosen ConAgra as our “Stock of the Year”for 2013.

ConAgra began processing grain at just four mills in Nebraska in 1919. Over the decades, it grew into one of North America’s leading food companies. In the past few years, it has sold off its fresh food operations to focus solely on its more profitable packaged food businesses.

The company recently announced a major acquisition that will give it a larger share of the fast-growing private label food business....

INTERNATIONAL BUSINESS MACHINES CORP. $205 (New York symbol IBM, Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $225.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.ibm- .com) has gained 6.8% since we named it last year’s top pick at $192 in our February 2012 issue.

Demand for the company’s software is rising....

Online shopping continues to grow quickly, mainly because the Internet makes it easier for consumers to find the merchandise they’re looking for and compare prices. Online shopping is also becoming more popular in developing countries, where there are few shopping malls and stores.

The best way to profit from this trend is through companies that process online payments....

INTEL CORP. $21 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $105.0 billion; Price-to-sales ratio: 2.0; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.intel.com) earned $11.6 billion in 2012, down 14.4% from $13.5 billion in 2011....

WELLS FARGO & CO. $35 (New York symbol WFC; Conservative Growth Portfolio, Finance sector; Shares outstanding: 5.3 billion; Market cap: $185.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 2.5%; TSINetwork Rating: Average; www.wellsfargo.com) earned a record $18.9 billion, or $3.36 a share, in 2012....

ARCHER DANIELS MIDLAND CO. $29 (New York symbol ADM; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 658.6 million; Market cap: $19.1 billion; Price-to-sales ratio: 0.2; Dividend yield: 2.4%; TSINetwork Rating: Above Average; www.adm.com) processes corn, wheat, soybeans, canola, flax seed, peanuts, cocoa and other crops into a variety of food ingredients, such as flour, oils and sweeteners....

Most Windstream and Frontier Communications investors probably received their shares as special dividends. While these firms’prospects aren’t as bright as bigger companies we recommend, like AT&T and Verizon, they are still worth holding for their steady dividends.

WINDSTREAM CORP....