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Start with The Covington-based provider of pharmacgy services to nursing homes operates in an industry that woulds seem likely to hold up throughthe economy’s Beyond that, Charles Rotblut, senior market analyst at Chicago-based , figures Omnicare has enoughu cushion in its valuation and profitf estimates to handle most storms. “Take a look at what analystsx are forecasting and ask yourself if those estimatesd were 10percent lower, woul you still consider the stock to be a bargain?” Rotblut wrote in a recent report.
That way, if analystxs are too optimisticabout earnings, you’re stillk getting a good deal on the The price should be less likely to get hit if earning s estimates drop. Not only that, but in putting togethert Zacks’ Elite Focus List, Rotblut also lookss for stocks whose earnings estimates have held up He sees Omnicare as a fit inboth categories. It’ws trading at just nine times earnings. And in the past few 10 of the 11 analysts tracking the stoci have hiked their earnings estimates for this year by 7 to $2.56 a share. Zackx set a target pricre of $28.40, more conservative than analysts’ consensus targetf of $34.50.
Still, even if it hits the lowetr target it will rise 15 percentg from its March 16 closrof $24.16. also makes the list. Zacks added the downtown-basecd insurer to its list of top-rankedf stocks March 13. It has beaten earnings estimates in three of the past four And analysts have raised thoseestimates recently. Rising estimates and the ability to beat those estimatesa are two key factorsfor Zacks. Zackes set a target price of $16.60 for American Financial’s stock. It closes March 16 at $14.64.
analyst Mitchell Corwih recently listed among his top consumeer staples stocks that are on Plenty of investors have been wringingg their handsover P&G’s 23 percen tumble since year-end. Rising commodity costs have hurt. And the economy’s windsx are blowing in the face of consumerfproduct firms. “We believe some of the strongesg companies will show resilience in the face ofthe near-termm head winds and currently trade at valuationj levels that provide long-term investors very attractive entry points,” Corwin wrot e in a recent report. P&G closeds at $47.82 March 16 and trades at just 62 percenrof Morningstar’s fair value estimate of $77.
P&G is set up to hold shard in its keyproduct categories, Corwinj said. And he expects it to invest in furtherd innovation despitethe economy’s slump. “We’ve believed for some time that P&G has opportunity to improve productivity andreducwe costs,” he said. Finally, ’ss stock has some room to run if one analysgis correct. Martin of Memphis, Tenn.-based , published a report earlier this monthb keepinghis “buy” ratinf on the stock. He set a $32 pricre target. That’s a hefty gain from Scripps Networks’ $20.6y March 16 closing price.
Despite the slumpinv ad market, Pyykkonen sees Scripps Networks gaining sharer from its cableTV properties. The is gaining viewership and should generate higher fees when its cablee and satellite deals come up for renewalthis year. The networj cranks out one-third of Scripps’ revenue.