American Greetings Corp. (AM ): American Greetings Corporation is engaged in the design, manufacture and sale of everyday and seasonal greeting cards and other social expression products worldwide. AM shares recently reported at $16.97 with a twelve month trailing price to earnings ratio of 10.11 and a five year forward price to earnings ratio of 5.63. AM has paid dividends since 2008 and currently yields at 4.30% with a payout ratio of 46.0%. On the basis of the latest closing price, the company’s market cap is $503.67 billion. AM shares have advanced 14.71% since the beginning of this year. AM shares are low priced with a PEG ratio of 0.65, compared with the direct competitor CSS Industries Inc. (CSS) with a five year expected PEG ratio of 0.49 and the industry average level of 0.77. According to the data by Thomson/First Call, the consensus price target of AM shares is $30, which implys a 51.67% upward potential. The consensus rating on AM shares is “hold.”
Avon Products Inc. (AVP): Avon is one of the world’s largest cosmetic companies. It manufactures and markets beauty and related products worldwide. AVP shares recently closed at $16.97 with a twelve month trailing price to earnings ratio of 17.21 and a five year forward price to earnings ratio of 13.14. AVP has paid dividends since 1919 and currently yields at 5.90% with a payout ratio of 101.00%. On the basis of the latest closing price, the company’s market cap is $6.75 billion. AVP shares have lost 10.48% since the beginning of this year. AVP shares are modestly priced with a PEG ratio of 0.60, compared with the direct competitor Revlon, Inc. (REV) with a five year expected PEG ratio of 0.54 and the industry average level of 1.62. According to the data by Thomson/First Call, the consensus price target of AVP shares is $20.33, which implys a 23.07% upward potential. The consensus rating on AVP shares is “hold.”