Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) has already been one of 2011′s greatest stock performers. The market turmoil caused a pause, but analysts have remained positive. It is amazing that this is now a $14 billion company and that it is up tenfold since the recession lows. Shares are at $93.62 and that implies upside of over 29% to the $121.50 consensus price target. It is worth noting that this stock trades with a large P/E and buyers are still betting that growth continues from 2012 to 2014. That $121.50 price target is also above the all-time high of $115.98.
QUALCOMM Incorporated (NASDAQ: QCOM) has been a beneficiary of the boom in smartphones and the tablet migration will be a win for the company if the tablet market can expand beyond just the iPad market. The company has also bought back stock and currently offers a dividend yield of about 1.7% with the promise of higher payouts to come in the years ahead. At $51.65, there is an implied upside of about 24.8% to he $64.47 consensus price target. We would note that this price target is above the $59.84 52-week high. It may seem amazing, but the CDMA platform has allowed QUALCOMM’s international growth and domestic growth to make this worth almost $87 billion today.
SanDisk Corporation (NASDAQ: SNDK) is the independent king of flash memory. Shares were hit unusually hard during the summer sell-off but they have recovered handily. Some may argue that the stock has actually recovered too handily with literally a 40% bounce since the lows when we were referring to it as a technology value stock. Shares are around $44.46 and that implies upside of about 26.5% to the consensus price target of $56.28. We would note that the price target is above the 52-week high of $53.61.
Staples, Inc. (NASDAQ: SPLS) has come down substantially off of highs and it carries a value stock status. The office supplies giant has been treated very harshly as the investment community has been pricing in a slower business spending climate. Selling in May and going away would have been a huge win here and shares are fighting in a $13 to $15 range right now. At $14.40, there is an implied upside of 25.4% to the $18.07 consensus price target. We would also note that this was above $20 before the big sell-off and the stock’s 52-week high is $23.75. Despite the woes and concerns there is expected growth and this trades at about ten-times expected earnings. Staples even carries a 2.7% dividend yield.
Urban Outfitters Inc. (NASDAQ: URBN) has lost much of its mojo. Selling $200 blue jeans and controversial tee-shirts was a huge growth generator for the company but it now appears to be a maturing model if you just look at the stock chart and nothing else. If you look to earnings and growth, this is a transition year but there is expected growth in 2010. Urban Outfitters is also a company which often gets discussed as a “private equity wish list company” when it comes to retail and apparel M&A candidates. At $23.54, the consensus price target of $31.38 gives an implied upside of about 33%. We would also note that this target of $31.38 is way under the 52-week high of $39.26. This one has almost pulled back too much and it feels as though no imminent catalyst is there. Still, this makes it the largest retailer with the highest upside based upon the criteria we used.
Walt Disney Co. (NYSE: DIS) has been hit hard with the pullback as its business growth plans have staggered a bit. Is it a paradox or irony that Steve Jobs was the largest individual shareholder of Disney? The Mouse House recently closed at $32.61 and the consensus price target of $42.17 gives an implied upside of more than 29%. It is also worth noting that the 52-week high of $44.34 is above the consensus price target. Bob Iger has also just recently agreed to remain CEO until early in 2015 to leave plenty of time for a succession plan. For a DJIA component, Disney does have a rather unimpressive 1.2% dividend yield.
JON C. OGG
