With 2012 just beginning, now's a good 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 MBIA
Forecasts on MBIA
|Median Target Stock Price||$20.25|
|2011 EPS Estimate||($2.55)|
|2012 EPS Estimate||$0.99|
|Expected Annual Earnings Growth, Next 5 Years||10%|
Source: Yahoo! Finance.
Will MBIA keep moving fast in 2012?
Analysts have high hopes for MBIA, with target stock prices more than 60% higher than their current levels. Interestingly, though, they see those gains coming from weaker sales -- MBIA revenue estimates for 2012 are more than a quarter lower than what the company's likely to have posted in 2011.
The big question for MBIA's 2012 is what will happen in its main areas of business exposure. Judging from weak expectations for more mortgage-focused insurers MGIC Investment
Another key issue remains potential liability to other financial institutions. The $1.1 billion settlement it paid to Morgan Stanley
If the financial system avoids any other shocks -- such as a European sovereign crisis -- then MBIA is in good position to see gains from its somewhat depressed levels. Even with lower levels of activity, a return to consistent profitability will undoubtedly cheer shareholders.
Click here to add MBIA 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. 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.