4 Consumer Stock Stories for Wednesday Investment Shopping
General Motors Company (NYSE:GM): Current price $28.16
GM’s German division, Opel, reported on Tuesday that it received in excess of 20,000 orders for its city car model Adam during the first week after the auto’s launch, indicating solid demand even as the business expects the European automarket to contract slightly again in 2013. Subsequent to a $747 million loss in 2011, these orders are obviously quite welcome. GM estimates that its European division will post a loss of between $1.5 billion and $1.8 billion, depending on restructuring costs for 2012.
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Dunkin’ Brands (NASDAQ:DNKN): Current price $35.96
On Tuesday, UBS raised its 2013 and 2014 earnings estimates on Dunkin’ Brands from $1.51 and $1.78 to $1.53 and $1.82. At the same time, the shares got a boost in their price target from $36 to $40. Also, UBS reiterated its Buy, whose analyst commented that, ”Our new estimates and target inch us closer to our original upside case. With our new target, we assume an 18% EPS growth rate over the next 3 years due to accelerated unit growth and impending customer loyalty/ mobile payment initiatives. We continue to believe investors will be willing to pay a premium multiple for companies that exhibit such highly visible and consistent EPS growth.”
General Mills (NYSE:GIS): Current price $42.10
General Mills has sold $1 billion of bonds in its first benchmark offering in some 14 months, including its first 30-year debt instrument since 2010, with the proceeds to be used to repay debt. The firm’s $250 million of 0.875 percent, three-year fixed-rate notes yield 45 basis points more than similar-maturity Treasuries, $250 million of three-year floating-rate bonds yield 30 basis points more than the Libor, and $500 million of 4.15 percent, 30-year securities have a relative yield of 105 basis points, says data compiled by Bloomberg.
Domino’s Pizza (NYSE:DPZ): Current price $46.49
On this Super Bowl Sunday, Domino’s intends to deliver in excess of 11 million slices of pizza, which would mark a nearly 80 percent increase over a typical Sunday. Delivery drivers will likely cover 50 percent more ground than they normally would. The game Sunday is typically the busiest day of the year for pizzerias and this year should to be no different as San Francisco take on Baltimore Ravens. There are more that 70,000 pizza restaurants across the United States and they are prepping for the big day by launching football-themed marketing campaigns, adding staff and ordering a lot of extra supplies.
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