Three "Supernatural" Stocks While Waiting for Season 7

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Love it or hate it, the season finale of the CW's
Supernatural,
with its showdown between the Winchester brothers and the angel Castiel, has brought season 6 to a close. Already the speculation about
Supernatural
season 7 is rampant: What does being a god mean for Castiel? Can Dean forgive him for what he did to Sam? Why is Misha Collins not listed as a regular for season 7? There will be plenty of time for fans to mull things over before
Supernatural
returns on Friday evenings in the fall. In the meanwhile, here are three
Supernatural
-related stocks to consider as well.
Cabela's
For accomplished hunters like Sam and Dean Winchester, the go-to place has to be Cabela's
CAB
, the Nebraska-based sporting goods superstore chain. The company attributed solid first-quarter results to strong same-store sales and the record performance of its CLUB Visa program. It also recently announced further expansion into Canada with a new store in Saskatoon. Earnings in most recent quarters have topped consensus forecasts. The long-range EPS growth forecast for Cabela's is 14.7%. Founded in 1961, Cabela's is a leading specialty retailer—and the world's largest direct marketer—of hunting, fishing, camping and related outdoor merchandise. Its stores are as big as 246,000 sq. ft. and include such features as waterfalls, simulated mountainsides, aquariums, in-store shooting galleries and meeting and banquet facilities. Cabela's also sells merchandise online and through catalogs, and it has an outdoors television show. The stock is trading at 13.9 times 2011 earnings estimates. Piper Jaffray just reiterated its Overweight rating and its price target on Cabela's. Analysts on average have recommended buying CAB for more than 90 days. Their mean price target is currently $32.89. The share price has pulled back from the 52-week high of $32.37 but is still up about 8% year-to-date. The stock has performed in line with the broader market since the beginning of the year.
General Motors
As they hunt the supernatural, Sam and Dean travel the country in a black 1967 Chevrolet Impala. Chevys are, of course, one of the surviving brands of General Motors
GM
. Detroit-based GM came back from the dead (that is, emerged from taxpayer-funded bankruptcy) in November with one of the largest IPOs in U.S. history. The automaker easily topped consensus EPS estimates in its first two quarterly reports following the IPO. For the current quarter, analysts are looking for earnings of $1.13 per share on revenue of $36.5 billion. Note that the earnings estimate was $1.06 per share 30 days ago. GM's long-term EPS growth forecast is 11.4%, which is better than the EPS forecast of competitor Ford
F
. GM's forward P/E ratio estimate is 7.2. The PEG ratio is 0.6, suggesting that the stock is undervalued. GM also has a return on equity of 19.1%. Analysts on average recommend buying the stock and have for more than 90 days. Their price target on the stock is currently $43.22 per share. Shares ended last week at $31.18, which is closer to the post-IPO low than the high. Like Toyota
TM
, GM has underperformed the broader market, as well as Ford, in the past three months.
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Time Warner
Warner Brothers Television, a subsidiary of Time Warner
TWX
, produces
Supernatural
and such other programs as
Two and a Half Men, The Big Bang Theory, Chuck, Fringe, The Mentalist
and
Pretty Little Liars.
Much of the focus at Time Warner's annual meeting last week was on Charlie Sheen's firing and replacement by Ashton Kutcher. CEO Jeff Bewkes also pointed to the Conan O'Brien's success at TBS, the company's recent acquisition of Flixster and its share buybacks in 2010, and that its dividend is higher than those of its competitors. Time Warner's per-share earnings were about 10% lower year-to-date in the first quarter but topped analysts' consensus estimate. The company has topped earnings estimates in recent quarters, and the long-term earnings per share growth forecast is 14.4%. The stock is trading at 15.6 times 2011 earnings estimates, which is better than the sector average. The 0.9 PEG ratio suggests undervaluation. Time Warner's dividend yield is 2.4%. Short interest is 2.2% of the float. Shares have traded mostly between $35 and $38 since February and ended last week at $36.79. That is above the 50-day and 200-day moving averages though. Like competitors News Corp.
NWS
and Walt Disney
DIS
, Time Warner has outperformed the broader market year to date.
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Posted In: Long IdeasShort IdeasTrading IdeasAshton KutcherAutomobile Manufacturerscabela'sCharlie SheenChevroletChevrolet ImpalaChevyCLUB VisaConan O’BrienConsumer DiscretionarydisneyFordGeneral MotorsGMJeff BewkesMisha CollinsMovies & EntertainmentNews Corp.Specialty StoresSupernaturalTime WarnerToyotaTwo and a Half Menwalt disneyWarner Brothers
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