I've trawled the FTSE 100 to find companies that are currently engulfed in negative analyst sentiment. If professional stock pickers have it right, then these shares could be set for further falls. However, if bears have finished selling and sentiment does turn, then the shares could rise sharply.
A production update from the company at the end of January confirmed big increases in production but a significant rise in costs. It is difficult to imagine sentiment on the shares changing without a significant increase in raw materials prices or a decline in costs.
Earning per share (EPS) and dividends are forecast to fall in 2013. The shares are on a 2013 price-to-earnings (P/E) ratio of 12, with an expected yield of 3%.
Fresnillo (LSE:FRES) is the world's largest silver miner. Shares in the company have fallen 19.4% in 2013. Much of this fall followed a particularly disappointing production update issued toward the end of January. Fresnillo reported broadly unchanged production quantities and a large increase in forecast costs.
In the last year, the price of gold is down 8.8%. Silver is down 14.6%. I think that 2013 will be the year that precious metals speculators will dramatically throw in the towel.
Despite all of this bad news, Fresnillo shares trade on 20 times 2013 forecast earnings. That seems expensive for shares in a company where so much appears to be going in the wrong direction.
In the last year, Wm Morrison Supermarkets (LSE:MRW) has been losing market share to its rivals. The company is now forecast to make EPS of 26.5 pence for 2013. This time last year, analysts were expecting 28.6 pence. Fortunately, it appears that much of the misery is already in the share price. In fact, the shares have never been cheaper on a P/E or yield basis.
Morrisons is forecast to pay a total of 11.7 pence in dividends for 2013, rising to 12.6 pence the next year. This means that the shares trade on an expected 2014 yield of 4.8%.
Although Morrisons offers a good yield, the analysts here at The Motley Fool believe that they have found a more reliable one. The blue chip in question offers a 5.6% income, might be worth 850 pence vs. around 716 pence now, and has just been declared the "Top Income Stock of 2013." Just click here to download the report -- it's absolutely free.
David O'Hara has no position in any stocks mentioned. The Motley Fool recommends Antofagasta. Try any of our Foolish newsletter services free for 30 days. 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 Motley Fool has a disclosure policy.