Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, November 30, 2012

Article Excerpt

YUM! BRANDS INC., $67.08, New York symbol YUM, fell 10% today due to weaker-than-expected sales in China. The company’s KFC, Pizza Hut and other restaurants in China account for 50% of its total sales, and 45% of its earnings. In the fourth quarter of 2012, Yum expects same-store sales in China will fall 4%. However, same-store sales should rise 4% at its other international outlets, and 3% in the U.S. Yum still expects to earn $3.24 a share in 2012, which is a 13% gain over 2011. However, this forecast fell short of the consensus forecast of $3.28. The stock trades at 20.7 times the new estimate. That’s still a reasonable p/e ratio in light of its long-term growth prospects: Yum expects earnings to grow by at least 10% in 2013. Yum Brands is still a buy. Yum Brands was recently covered in the Wall Street Stock Forecaster Hotline for October 12, 2012. Click here to access it. CONAGRA FOODS INC., $29.86, New York…