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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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.