F, BWLD, CAB,and CREE
F (Ford): Stock analysts are rating it a "buy." And, of the major car companies, Ford is probably the best from an investment standpoint. Still, car purchases depend a lot on consumer sentiment and consumer sentiment right now isn't great. And as interest rates rise (which they'll do, eventually), that'll make it more difficult for people to finance a purchase of any car. My opinion: It's OK, but I'm just not crazy about the automotive sector.
BWLD (Buffalo Wild Wings): Stock analysts are rating it a "strong buy." Still, it's had a 50% run-up in price since August. Its profit margins are about average. Its PE ratio and similar ratios of valuation are pretty high. I don't know if it can sustain its growth. If it stumbles, its price will really deflate.
CAB (Cabelas): Analysts are neutral to somewhat bearish on this stock. (I hadn't heard of it before.) Its price dipped fairly recently, but has recovered most of its losses. Its numbers actually look OK--not spectacular, but maybe a bit above average for its group. It doesn't appear to be overvalued, but I wouldn't look for it to shoot up in price. A slow, steady climb is more likely.
CREE (Cree): Most analysts are neutral on the company, which makes LEDs. I like the sector, but the price of Cree has been very volatile--around 75 in August, 54 in September, 74 in late October, 54 in late November, and now it's around 63. It's probably overpriced--PE ratio of about 70 and a PEG ratio of 4.5. All of that's because of its fast growth. Its returns (ROE, return on sales, etc.) are below industry averages. Three years ago, it was trading around 55, so it really hasn't done much, share-wise, in the past three years. I like the sector, but this one is too volatile and overpriced for my tastes.
So, of the ones you've listed, I guess Ford and Cabelas would be my two choices. You can do better than Cree, unless you just plan on buying on the dips and selling on the peaks. And while a lot of the numbers look good for Buffalo Wild Wings, there's a lot of downside potential if the company stumbles.
Hope that helps.
These are the stocks that I am considering. Let me know pros/cons of each stock. Thanks in advance.
F, BWLD, CAB,and CREE
