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Can ZAGG Keep Winning in 2012?

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 (Nasdaq: ZAGG  ) . As I discussed in more detail last month, the fortunes of this mobile accessories company rose and fell with those of the makers of popular mobile devices. If their popularity stays high, then ZAGG could see a repeat of 2011's gains. Below, I'll take a closer look at what people expect from ZAGG and its rivals.

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%
Forward P/E 10.5
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 (NYSE: BBY  ) last year, so ZAGG has to convince the big-box electronics retailer that its products are worth the shelf space Best Buy gives them. Moreover, if Best Buy loses business to direct sales of devices, then ZAGG could miss out on the cross-selling opportunity. Certainly, both iPhone maker Apple (Nasdaq: AAPL  ) and mobile provider AT&T (NYSE: T  ) have used a combination of website sales and dedicated retail stores to try to capture customers directly, with a fair amount of success.

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.

ZAGG certainly isn't the only company that will benefit from growth in the mobile industry. There's a trillion-dollar revolution going on in the area right now, and you shouldn't miss out on it. Read the Motley Fool's latest special report to learn which stock is at the center of this money-making opportunity. The report is free, but don't wait -- check it out today before it's gone.

Click here to add ZAGG to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Best Buy and Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple, as well as writing covered calls on Best Buy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.

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