Can Jamba Keep Jumping in 2013?

Updated

As 2013 begins, now's a good time to look at the future prospects for the stocks you own. If you don't know where a company's headed in the next year and beyond, then it's impossible to make an informed decision about whether you should add the stock to your portfolio -- or sell it if you already own it.

Today, I'll look at Jamba . The smoothie specialist juiced shareholders' returns in 2012 thanks to some big companies turning their attention to the space. But will that interest continue in the year to come? Read on to learn more about Jamba's prospects for 2013.

Stats on Jamba

Average Stock Target Price

$3.02

Full-Year 2012 EPS Estimate

($0.02)

Full-Year 2013 EPS Estimate

$0.08

Full-Year 2012 Sales Growth Estimate

1.8%

Full-Year 2013 Sales Growth Estimate

5.9%

Forward P/E

31.0


Source: Yahoo! Finance.

Will Jamba sweeten its stock price in 2013?
Analysts are pretty enthusiastic about Jamba's future prospects. The target price represents a more than 20% gain from current levels, and with revenue growth expected to accelerate and the company poised to reverse a 2012 full-year loss to a profitable 2013, things are looking up for Jamba.

Still, a lot depends on the rapidly changing competitive environment. With Starbucks having closed on its acquisition of Teavana, the company will continue working on integrating all of its recent buyouts, including the Evolution Fresh line of juices that most closely matches Jamba's area of expertise.

But one way Jamba can distinguish itself from beverage giants is to go after young consumers. The company's push to team up with the makers of the Twilight movies for a themed promotion marks just the latest attempt to connect to school-age kids, and with the company also sporting Jamba2Go dispensers in schools, it's hoping the moves will pay dividends in the years to come.

The wild card in the Jamba discussion is the potential for the company to get bought out in its own right. With McDonald's struggling recently, it could use the boost that a Jamba takeover would provide. On the other hand, rival Burger King could make upgrades to its own smoothie offerings with a new name-brand connection to Jamba, or energy-drink giant Monster Beverage could branch out to healthier fare by buying Jamba.

Jamba needs to keep working under the assumption that it won't score an easy win through getting a premium buyout offer. By getting more relevant in an increasingly popular space, Jamba will put itself in the best position to thrive no matter what happens.

Keep looking for winners
Jamba provided great returns last year, but if you want to find great stocks with regularity, tune in to Motley Fool co-founder David Gardner's picks. David routinely beats the market by staying on the lookout for revolutionary stocks before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.

Click here to add Jamba to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

The article Can Jamba Keep Jumping in 2013? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter, @DanCaplinger. The Motley Fool recommends Burger King Worldwide, McDonald's, Monster Beverage, and Starbucks and owns shares of McDonald's, Monster Beverage, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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