Value Line Low Total Return Screen (3/22/2013)

 

Companies of Interest

The average low total return forecast for Issue 5 is 7.0% — so there are some shopping opportunities in the group. (Reminder: The companies displayed in the screening results are limited to the top two quality ranking quintiles, or greater than 60)

Nu Skin (NUS) is a somewhat speculative study but displays some promising characteristics. I’m reminded of Laura Berkowitz’s timeless “Confessions of a SafeSkin Buyer” published years ago in Better Investing and wonder if the study shouldn’t include a threats and opportunities analysis of single-product companies, fads … and the like.

Gentex (GNTX) is a potential study in conflicted consensus. Morningstar thinks the price-to-fair value ratio for GNTX is 74% (attractive). S&P thinks the P/FV is 103% (fairly/fully valued). Go ahead. Rumble. What do you think?

Walgreen (WAG) and CVS Caremark (CVS) continue their leadership campaign and compete with each other. Both companies remain attractive from a return perspective and the fundamentals at CVS have strengthened of late — now topping WAG in the quality ranking. S&P sees opportunity with a P/FV of 74% for CVS.

Materially Stronger: Arris Group (ARRS), Cisco Systems (CSCO)

Materially Weaker: Acme Packet (APKT), Broadcom (BRCM), Tellabs (TLAB), Alaska Communications (ALSK)

Market Barometers

The Value Line median low total return forecast is 6.8%, down slightly from last week’s 6.9%.

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