On a day when it seemed like just about every stock on the planet was "in the red," and lost money, TASER International (NASDAQ: TASR ) was the exception.
News that TASER has gotten its stock included into the S&P 600 SmallCap Index sent TASER shares flying in early trading Monday. Although TASER stock wasn't completely immune to a broad market sell-off, and ended the day with only a 5.2% gain, the stock was up nearly twice that amount at one point.
But is TASER really worth the nearly $17 a share that Wall Street now charges for it?
Well, no. But it's awfully close.
Valuation matters
On the surface, TASER shares seem steeply valued at 52 times earnings. Even if analysts are right about the company's ability to grow earnings at 30% annually, every year, for the next five years, that looks like a pretty rich valuation. But looks can be deceiving.
TASER, you see, may report GAAP financials showing that it earned only $16.7 million over the past year. But the company's cash flow statement shows that TASER generated real cash profits nearly 50% higher -- $24.7 million.
10 Best Healthcare Technology Stocks To Buy For 2015: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
Advisors' Opinion:- [By Jon C. Ogg]
Dollar Tree Inc. (NASDAQ: DLTR) was maintained as a Buy but was removed from the prized Conviction Buy list at Goldman Sachs.
Duke Energy Corp. (NYSE: DUK) was raised to Buy from Hold with a $79 price target at Argus.
- [By Ben Eisen]
Perpetually struggling department store J.C. Penney Co. (JCP) �said it expects a sales boost this holiday season as it returns to a promotional strategy. But for the most part, retailers including Dollar Tree Inc. (DLTR) �, GameStop Corp. (GME) � and Abercrombie & Fitch Co. (ANF) � gave dour outlooks in their earnings reports.
- [By Jacob Roche]
With the economy starting to improve, you might think Dollar Tree's (NASDAQ: DLTR ) fortunes will reverse. The deep discounter provided unemployed and lower-income consumers a safe place in the storm, but with the economic weather clearing up, it would be reasonable to expect consumers to venture out again to higher-end retailers. However, that assumption would be wrong.
Top 5 Value Companies To Invest In Right Now: Tupperware Corporation(TUP)
Tupperware Brands Corporation operates as a direct seller of various products across a range of brands and categories through an independent sales force. The company engages in the manufacture and sale of kitchen and home products, and beauty and personal care products. It offers preparation, storage, and serving solutions for the kitchen and home, as well as kitchen cookware and tools, children?s educational toys, microwave products, and gifts under the Tupperware brand name primarily in Europe, Africa, the Middle East, the Asia Pacific, and North America. The company provides beauty and personal care products, which include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products principally in Mexico, South Africa, the Philippines, Australia, and Uruguay. It offers beauty and personal care products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgar de brand names. The company sells its Tupperware products directly to distributors, directors, managers, and dealers; and beauty products primarily through consultants and directors. As of December 26, 2009, the Tupperware distribution system had approximately 1,800 distributors, 61,300 managers, and 1.3 million dealers; and the sales force representing the Beauty businesses approximately 1.1 million. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. The company was founded in 1996 and is headquartered in Orlando, Florida.
Advisors' Opinion:- [By John Kell]
Among the companies with shares expected to actively trade in Wednesday’s session are Dow Chemical Co.(DOW), Tupperware Brands Corp.(TUP) and Yahoo Inc.(YHOO)
- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP ) has earned a coveted five-star ranking.
- [By Jonathan Berr]
Multilevel marketing (MLM) groups such as Herbalife operate through independent sales representatives, who earn money both through the sales of product and by recruiting other people to join their team. This business model — which is used by scores of companies, including�Pampered Chef, which is owned by Warren Buffett’s Berkshire Hathaway (BRK.B), Tupperware (TUP) and Mary Kay Cosmetics — is legal provided that actual products are sold.
Top 5 Value Companies To Invest In Right Now: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Anders Bylund]
Other anomalies include Caterpillar (NYSE: CAT ) falling 7% on slow investments in global infrastructure construction. Thanks to the CAT's large share price, this move dragged the Dow down by 47 points. For a sense of scale, that's more than the 40 points that Cisco Systems (NASDAQ: CSCO ) brought to the table -- with a huge 27% move to the upside. Cisco's long-term vision of dominance across the data center is finally coming together and the market is responding strongly. But like I said, this 27% jump makes less of a difference to the Dow than Caterpillar's much smaller 7% move.
- [By Anders Bylund]
This uncertainty and story-focused action have turned a boring bank stock into the most volatile ticker on the Dow. It sports a five-year beta value of 2.4, far ahead of the market average of one. The Dow's second- and third-highest beta values belong to Alcoa (NYSE: AA ) and Caterpillar (NYSE: CAT ) , at 2.1 and 1.9, respectively.
- [By Jeremy Bowman]
Among Dow stocks moving higher today was�Caterpillar� (NYSE: CAT ) , which jumped 2.8% today as it defends its tax-avoidance practices in front of Congress this week. The heavy-equipment maker responded to allegations from a Senate subcommittee that said it has avoided $2.4 billion in taxes over the last 13 years by moving profits to a Swiss affiliate without transferring employees or business activities. Executives defended the practices, saying that "business practices drives our tax structure," not the other way around. Sen. Rand Paul (R-Ky.) took the opposite tack from Democrats in grilling the multinational manufacturer, going as far to salute Caterpillar for its strategy and success as an iconic American business. "We should probably give Caterpillar an award," he said. "It is a requirement that you try to minimize your costs. So rather than chastising Caterpillar we should be complimenting them." Caterpillar is just one of many blue chips that's been hauled before Congress to defend its tax strategy. Investors seemed to like the results of the hearing based on the stock's gains.�
- [By ANUP SINGH]
Coal consumption growth in China is estimated to have slowed down to 4% year on year in 2012, down from 10% in 2011. An economic slowdown in�the country�has affected demand, and this has been one of headwinds for Joy because it has substantial exposure to China. Caterpillar (NYSE: CAT ) , one Joy's competitors, is also facing trouble in China of late.
Top 5 Value Companies To Invest In Right Now: Schlumberger N.V.(SLB)
Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based in Houston, Texas.
Advisors' Opinion:- [By Ben Levisohn]
Morgan Stanley’s Ole Slorer and Igor Levi explain why�Schlumberger (SLB) could gain more than 70%:
Getty ImagesSchlumberger�guided earnings to grow at a 17-20% [compound annual growth rate] to $9-10/sh by 2017, ahead of our current estimate of a 15% [compound annual growth rate]. However, the company�� estimates are based on just a 6% industry spending growth level, which is about in line with our long-term expectations of 4-6%.
Schlumberger has historically converted 30% of its EBITDA or 75% of [earnings per share] into free cash flow, meaningfully above that of its peers, while trading at a�free cash flow yield of 2-4%.� Currently shares are trading at the high-end of the range making valuation compelling. Applying a conservative 3.5% yield to the company�� 2017 EPS estimate of $9-10/sh, its 75%�free cash flow conversion and discounting it back 2 years at 10%, we arrive at our new $168 PT. If�Schlumberger is able to bring this growth 6-12 months forward and its�free cash flow yield approaches its historical 3% average, we arrive at our $200 bull case.
While Schlumberger has a free-cash-flow yield of about 3.5%, Cameron International’s (CAM) and Dril-Quip’s (DRQ) are just over 3% and�FMC Technologies‘ (FTI) is just under 3%. Halliburton (HAL) has a free-cash-flow yield of just over 1%.
Shares of Schlumberger have gained 2.1% to $116.19 at 2:06 p.m., while Cameron has doped 0.78% to $66.71, Dril-Quip has fallen 1.1% to $105.62, FMC Technologies has declined 2.2% to $60.20 and�Halliburton is up 0.2% at $69.57.
- [By Paul Ausick]
Oilfield services giant Schlumberger Ltd. (NYSE: SLB) saw short interest rise 12.5% to 14 million shares, about 1% of Schlumberger�� float. The largest oilfield services company reported fourth-quarter results last week and posted higher EPS and revenues than it did a year ago.
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