Avon Products – Growth And Income – Zacks Rank Buy
Source: http://www.zacks.com/commentary/12469/Avon+Products++-+Growth+And+Income+-+Zacks+Rank+BuyPosted on Tuesday, October 20th, 2009 | In Investing Lessons, Stocks to Watch
Avon Products Inc. (AVP) is seeing bullish earnings estimates ahead of reporting next week. The full-year Zacks Consensus Estimate of $1.66 per share is up 5 cents over the past 90 days. For 2010, analysts polled by Zacks are projecting earnings of $2.11 per share, versus last month’s $2.08 and the 3 months-ago forecast of $1.95.
Company Description
Avon Products is beauty company with over $10 billion in annual revenue. As the world’s largest direct seller, Avon markets to women in more than 100 countries through 5.8 million independent Avon Sales Representatives. Avon’s product line includes beauty products as well as fashion and home products. The company features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals and Mark.
Rising Forecasts and Strong Momentum
The company is seeing bullish earnings estimates ahead of reporting nest week. The full-year Zacks Consensus Estimate of $1.66 per share is up 5 cents over the past 90 days.
For 2010, analysts polled by Zacks are projecting earnings of $2.11 per share, versus last month’s $2.08 and the 3 months-ago forecast of $1.95.
Third-quarter forecasts of 39 cents per share were increased from 36 cents over the past 90 days.
Avon is scheduled to announce third-quarter results on October 29.
The share price, which is very close to a 52-week high, has seen strong momentum lately, outpacing the market by about 5% during the past 3 months.
Favorable Industry Comparisons
Avon boasts a return on equity (ROE) of 88%, dwarfing the industry average of 8%. The company’s net profit margin of 6.5% compares to a negative industry average. This Growth and Income pick pays an industry-leading dividend yield of 2.5%.
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 About Alex Kolb (http://www.zacks.com/)
Alex Kolb is an Editor at Zacks Investment Research. |
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