With 2012 just beginning, now's a smart time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at ZAGG
Forecasts on ZAGG
|Median Target Stock Price||$20|
|Fiscal 2011 EPS Estimate||$0.48|
|Fiscal 2012 EPS Estimate||$0.75|
|Expected Annual Earnings Growth, Next 5 Years||26%|
|CAPS Rating (out of 5)||*|
Sources: Yahoo! Finance, Motley Fool CAPS.
How will ZAGG do this year?
ZAGG presents an interesting mix of contrary opinions. Analysts are highly bullish on the stock, expecting 56% growth in earnings per share this year and projecting a price target that's well over double the stock's current price. Yet at Motley Fool CAPS, investors are more pessimistic, giving the stock a rock-bottom rating.
ZAGG has certainly been growing quickly. Current estimates say the company likely doubled its sales in the fourth quarter compared to the year-ago period, and while that revenue growth is pegged to slow to less than 40% in 2012, it still represents a huge jump.
But ZAGG is largely dependent on other companies for its success. More than 40% of its sales came through Best Buy
Moreover, the company has had to deal with short-selling pressure for a long time. Even now, short-sellers have about 43% of ZAGG's floated shares sold short. That could create a huge short squeeze at some point if ZAGG performs well, but it shows how much some people think the company is doomed to fail.
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