Ballard Power
Shares of hydrogen fuel-cell maker Ballard Power Systems Inc. (NASDAQ: BLDP) posted a 52-week high nearly a full year ago. Since then, the share price has declined by about 58.5%. The last time Ballard Power posted a profit was in the March quarter of 2015. Analysts’ projections through 2024 do not show any profit for the next eight quarters either, and revenue over the next two years is expected to rise by 87% to just $171 million. Ballard Power may be a growth company, but it is taking its own sweet time to show it. The company reports results first thing Friday morning.
Analysts are cautious on the stock. Of 25 brokerages covering it, 16 have a Hold rating while six have a Buy or Strong Buy rating. At a share price of around $5.00, the stock trades above the median price target of $4.30. At the high price target of $8.34, the upside potential is about 67%.
Ballard Power is expected to report third-quarter revenue of $25.62 million, up 20% sequentially and down 30.2% year over year. Analysts are forecasting a loss per share of $0.14, flat sequentially, but a penny better than in the year-ago quarter. For the 2022 fiscal year, analysts anticipate a loss per share of $0.61, worse than the $0.39 per-share loss last year, on sales of $91.32 million, down about 12.6%.
The company is not expected to post a profit in 2022, 2023 or 2024. The stock’s enterprise value to sales multiple for 2022 is 6.4, for 2023 is 5.1 and for 2024 is 3.4. Ballard Power does not pay a dividend, and the total shareholder return for the past 12 months was negative 49.36%.
FedEx
Shares of FedEx Corp. (NYSE: FDX) posted a 52-week low after the company warned on earnings in September. A cost-saving plan to slash $2.7 billion in costs has boosted the share price by around 33% since that low, but investors are waiting to hear more about how costs are being cut before they add to their stakes in the company. Have costs fallen enough or has revenue improved enough to justify the 10% jump in the stock price since the beginning of the year? FedEx reports results late Thursday.
Analysts have adopted a wait-and-see position. Of 29 brokerages covering the stock, 14 have a Hold rating and the rest have Buy or Strong Buy ratings. At a share price of around $192.00, the upside potential based on a median price target of $213.50 is 11.2%. At the high price target of $265.00, the upside potential is 38%.
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