We believe, at present, the stock is trading at a discount to its fundamental valuation due to the negative sentiment surrounding the stock following the recent earnings release.
Just before Ross was supposed to report same store sales, a sell-side analyst came out and downgraded the stock saying that it was at full valuation with no catalyst to move the stock forward.
Theme parks are sensitive to the state of the economy, and the stock trades at a nosebleed valuation of 32 times expected 2013 earnings.
Even using that figure, the stock trades at a reasonable valuation.
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Limited downside risk compared to over 100% upside return potential, if the stock trades at a no-growth valuation, looks pretty good.
And, no one is arguing that Apple is an expensive stock, because it trades at an inexpensive valuation.
It would be one thing if the stock were not already trading at an inflated valuation, but it is.
When analyzing the stock through valuation ratios, shares trade at just 8x 12-month forward earnings, it looks like a fairly big slowdown is already baked into the stock price.
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"If you look at our stock and you do some analysis on it, the multiples that we trade at, the valuation that we trade at, in my opinion, is at a discount to our comps, " he said.
The fund's stock-picking process includes a scan of companies growing faster than their peers, a risk evaluation of balance sheets and the stability of cash flows, and a hard look at valuation, to see if a stock is worth the price.
The analyst says the stock is trading at 12x pro forma EPS, near a trough valuation.
We should sell the stock when it reaches our price or valuation target, determined at the time of purchase.
Valuation at XTO is compelling, with the stock trading at a 0.68 PEG ratio and at 10.9 times forecasted 2007 earnings.
And when analyzing the stock through valuation ratios, this specialty retailer with shares trading at 14.5x 12-month forward earnings, on par with its peer group average.
At the core of this battle is a disagreement about stock market valuation.
When looking at how the market has historically valued the stock, the current valuation should appeal to investors looking for a buy and hold candidate.
And at 14 times earnings, Penney's stock offers a pretty attractive valuation relative to the average industry multiple of 16 times earnings.
The company has guided that marketing expenses in the long run will remain at 20% of revenues, and our valuation of the stock modeled a decline in marketing expenses as a percentage of revenue to a high single digit value previously as we anticipated greater operating leverage as the company grew.
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For all the fanatical devotion to Apple among both customers and Wall Street analysts, the stock trades at what by almost any statistical measure appears to be an insanely low valuation.
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The story says the stock is priced at 7.6x EBITDA, almost two-thirds less than the valuation a year ago, and near a 2008 record low.
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At this point, there is more upside potential based on valuation and potential stock appreciation.
The valuation argument for investing in this stock still holds as now it is trading at multiple that is a strong discount to growth, even if growth is discounted by an increase in subscription cancellations.
Though I might prefer to buy it at a slightly cheaper valuation than I see today, this is the kind of stock you can buy, tuck into a drawer, and forget about.
At least one industry analyst, Jeff Osborne of Thomas Weisel Partners, has cut his stock valuation by 26% because he fears Evergreen will not be able to recover the shares from Lehman.
Once investors arrive at that answer, it should be followed with a system of applying the proper valuation to the stock.
Citigroup is selling at the equivalent of 7% of its price in 2007 It has lost 93% of its peak stock market valuation.. Bank of America is 20% of its peak price and has lost 80%.
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