Benzinga's Barron's Weekly Roundup: APOL, CAH, CFN, SHW, MO, DV, ESI, STRA, COCO, EDMC
November 09, 2009 12:16 PM
Why is the “for profit” college education sector trading at low multiples? Despite record enrollments ranging between 20 - 50% for some of the listed companies like Apollo Group, Inc. (NASDAQ: APOL), the sector finds it difficult to get into Wall Street’s good books. To read more, please click here
Cardinal Health, the second largest US drug distributor is undervalued. The positives for the company in the current year – handling of $ 1.2 billion cash business. After Cardinal sold CareFusion Corporation (NYSE: CFN), its stock shot up 19%. Cardinal is currently quoting at $ 29.5 a share. This could shoot up to $ 40 a share by next year. To read more, please click here
Wall Street can expect robust earnings from Sherwin -Williams Company (NYSE: SHW). That was in spite of its recent results. Sherwin’s 3rd quarter revenues fell 12%, to $2 billion. As the economy bounces back, sales of the Sherwin’s products will bounce. Then, as it has presence in the entire value chain, it has better control on costs. So, Wall Street can expect Sherwin’s margins to shoot up in future. To read more, please click here
US’ largest cigarette maker Altria Group, Inc. (NYSE: MO) has significant appreciation potential. But tobacco analyst at Morgan Stanley (NYSE: MS), David Adelman, has some suggestions that could lift the stock. His three suggestions to Altria’s management: aggressive product pricing, tighter cost cutting and continuation of stock repurchase program. And Altria Group is already cutting costs furiously. To read more, please click here
