With 2012 just beginning, now's a great 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 Navios Maritime Holdings
Forecasts on Navios Maritime Holdings
|Median Target Stock Price||$6|
|2011 EPS Estimate||$0.60|
|2012 EPS Estimate||$0.58|
|Expected Annual Earnings Growth, Next 5 Years||16%|
Source: Yahoo! Finance.
Can Navios Maritime Holdings bounce back in 2012?
Analysts have a fairly optimistic view of Navios. The current target price for the stock represents more than a 50% increase from its current level around $3.75 per share. And while earnings aren't expected to rise this year, analysts do see them jumping in the longer run. Combined with an attractive valuation, Navios has a lot of growth potential.
But first, the company will have to navigate a cutthroat environment in the shipping industry. On the oil tanker side, Frontline
Unfortunately, Navios doesn't have the healthiest balance sheet either, with a debt-to-equity ratio of 127%. But its strong portfolio of long-term charters in place gives it a competitive advantage over Diana Shipping
Navios needs the shipping industry to work through its current glut of capacity. If the world economy can recover from its long swoon, that could bring the industry closer to its former glory.
Navios may have plenty of profit potential, but it's not the only smart stock for your portfolio. Take a look at the Motley Fool's latest special report to find three powerful stocks for long-term riches. It's absolutely free, but it won't be around forever, so click here and read it today.
Click here to add Navios Maritime 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.