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 Yongye International
Forecasts on Yongye International
|Median Target Stock Price||$4.50|
|2011 EPS Estimate||$1.11|
|2012 EPS Estimate||$0.91|
|Expected Long-Term Annual Earnings Growth, Next 5 Years||10%|
|CAPS Rating (out of 5)||***|
Source: Yahoo! Finance.
How will Yongye International do this year?
Analysts don't have very high hopes for Yongye. With earnings on the decline, the stock's target price is only 5% or so above its current trading value. Members of our Motley Fool CAPS community are also ambivalent about the stock, giving it a middling three-star rating.
Look only at Yongye's numbers, and you'd wonder why the company's shares aren't much more expensive. Both revenue and net income have jumped more than 90% over the past year, but investors certainly haven't embraced the stock like they have other agricultural companies. By contrast, CVR Partners
But Yongye labors under concerns that no Chinese small-cap company has legitimate results. Even Morgan Stanley
At this point, every day the company keeps posting new results is a victory for shareholders, as it makes allegations of fraud increasingly unrealistic in the face of actual experience. If Yongye can make it through 2012 with another blockbuster year, investors may finally be able to believe the company is a real opportunity -- rewarding shareholders who get in early. But of course, any real evidence of problems for the company would likely stoke the fires for Yongye bears.
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Yongye International. Motley Fool newsletter services have recommended buying shares of Yongye International and China Green Agriculture. 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.