6 Stocks Hit 52-Week Lows: BBY, JRCC, FSLR, NFX, SWN, XCO
NEW YORK ( TheStreet) -- The following stocks hit 52-week lows on Monday: Best Buy (BBY) , First Solar (FSLR) , James River Coal (JRCC) , Newfield Exploration (NFX) , Southwestern Energy (SWN) and EXCO Resources (XCO) .
"Our LBO model shows that on a paper a deal is feasible at a price in the high $30 range, but, for the reasons listed below, we think a deal is unlikely: 1) Market share losses and increased competition would make it difficult for a buyer to stabilize comps and margins. Comps have fallen 2 years in a row and margins fell 50 bps last year. 2) The chairman Richard Schulze owns just under 20% and may be an unlikely seller. 3) At a high $30 range, the deal would require nearly $11b in debt and $5b in equity, bigger than recent LBO's in the space, which would make it difficult," Deutsche Bank analysts wrote in an April 18 report.
Shares of Best Buy hit a 52-week low on Monday of $21.31. The stock's 52-week high of $32.85 was set on June 21.
Best Buy trades at an estimated price-to-earnings ratio for next year of 5.78 times; the average for specialty retailers is 15.84. For comparison, GameStop(GME) has a higher forward P/E of 6.46.
Twenty of the 29 analysts who cover Best Buy rated it hold. Five analysts gave the stock a buy rating and four rated it sell.
TheStreet Ratings gives Best Buy a C grade and hold rating. The stock has fallen 6.68% year to date.
The stock was reportedly downgraded to neutral from outperform by Robert W. Baird.
"We're upgrading First Solar from Underperform to Buy, in recognition of the company's cost reduction efforts and the resulting likely impact both on earnings and valuation," Bank of America Merrill Lynch analysts wrote in an April 18 report. "The company still faces substantial challenges, and we still see earnings declining the next several years. That said, we have pointed to excess manufacturing capacity as a problem, and the company has addressed the issue with yesterday's announcement."
Shares of First Solar hit a 52-week low Monday of $19.10. The stock's 52-week high of $144.97 was set on April 29.
First Solar's forward P/E is 4.9 times; the average for renewable energy equipment companies is 8.5. For comparison, GT Advanced Technologies (GTAT) has a lower forward P/E of 4.5.