Stock picks and pans: MCD, HAS, TGT, WFMI, EMR, SYY, PG
Amidst the uncertainty, these are the latest stock ideas from BloggingStocks and from around the web:
McDonald's (NYSE: MCD) is a cash flow and profit machine, says Bill Martin. The recent quarterly earnings report only reiterated McDonald's strong positioning , especially during the economic slowdown, which doesn't seem to be much of a headwind. MCD even announced expansion plans, mostly overseas -- yes, even during these times. Other than the strong dollar, no other headwinds seem to affect it operationally and the stock is still a buy.
Doug McIntyre's view, however, differs, and he believes that at some point the recession will affect McDonald's too, so perhaps this is a good time to actually take profit.
Hasbro (NYSE: HAS) shares soared Monday after it reported earnings that actually missed analyst estimates. Yet Steven Mallas is more bearish on the stock than investors seem to be. While Hasbro may fare better than rival Mattel (NYSE: MAT), the obvious economic reasons for the bearish sentiment haven't changed. Until then, think twice before joining the rush.
Target Corp. (NYSE: TGT) is not Wal-Mart Stores, Inc. (NYSE: WMT). The difference between the two has become more pronounced ever since the economic downturn. Indeed, Ackman's Target fund lost 90% of its value since inception, and only last week Target reported a decline of 1.6% in its January same-store sales, while Wal-Mart reported an increase on 2.1%. Brian White thinks Target will continue to have a rough ride until the economy recovers, which probably won't be before 2010. Enough said.
Whole Foods Market (NASDAQ: WFMI), interestingly, is a buy pick from Jamie Dlugosch as the recent selling seems to have gone too far. While analysts estimate WFMI to make 65 cents a share this year, down from $1 in 2008, this may represent a bottom and the stock could return to growth in 2010, which makes the stock attractive at these levels.
Emerson Electric (NYSE: EMR) and Sysco (NYSE: SYY) are good dividend plays SmartMoney suggests. If you're looking for yield to accompany solid companies, these long-running companies boast healthy balance sheets and brighter long-term growth prospects (even if the yield is lower than other companies with perhaps more shaky financial positions and prospects).
Procter & Gamble (NYSE: PG) has often been mentioned on BloggingStocks and other places as a solid, defensive stock. But the consumer-staples company shares have sold off somewhat off late. Barron's thinks this creates an opportunity to buy the stock as it "offers stability at a historic discount."