ROE Generators: 3 Wall Street Loves, 1 It Hates
By Takeover Analyst:What follows is a list of companies that have ROE above 50%. They cover a variety of different industries: IT services, consumer goods, consumer finance, and telecom. Of the four, Windstream (WIN) is the least preferred on the Street with a "hold" rating.
Accenture is rated a "buy" on the Street and trades at a respective 16.1x and 13.6x past and forward earnings with a dividend yield of 2.4%. Its ROE for the most recent year was 67.8%.Consensus estimates for Accenture's EPS forecast that it will grow by 12.1% to $3.81 in 2012 and then by 10.5% and 9.5% more in the following two years. Assuming a multiple of 16x and a conservative 2013 EPS of $4.12, the rough intrinsic value of the stock is $65.92, implying 15.5% upside.Click here for more analysis.
Philip Morris International (PM)
Philip Morris is rated a "buy" not he StreetComplete Story »