With half of 2012 in the record books, it's important to take a look at whether the stocks that interest you can live up to their full potential. By making sure you know about a company's future plans and possible challenges, you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Diamond Foods
Stats on Diamond Foods
|Average Stock Price Target||$33.67|
|Fiscal 2012 EPS Estimate||$1.69|
|Fiscal 2013 EPS Estimate||$2.25|
|Fiscal 2012 Sales Growth Estimate||3.9%|
|Fiscal 2013 Sales Growth Estimate||74.6%|
|CAPS Rating (out of 5)||**|
Source: Yahoo! Finance.
Can Diamond Foods get its shine back?
From one perspective, so many bad things have happened to Diamond Foods that it may seem there's nothing left that could happen. Between ousting its CEO and CFO, missing out on the Procter & Gamble
But with so little known about the company's true financial condition, it's hard to rule out even worst-case scenarios for Diamond Foods. Granted, the shares have already priced in a big contraction in earnings, but even so, it's not as if there isn't more room to fall if things don't even turn out as well as beaten-down expectations suggest.
Meanwhile, the worst thing for Diamond Foods is that its competitors continue to move forward. Kraft Foods
Diamond Foods probably won't move much until it gets around to providing restated financials. Whether that happens this year or next remains to be seen, but investors have already lost patience with the company.
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services have recommended buying shares of Procter & Gamble and PepsiCo, as well as creating a diagonal call position in PepsiCo. 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.