Schnitzer Steel
Schnitzer Steel Industries Inc. (NASDAQ: SCHN), a recycling firm for both ferrous and non-ferrous metals, posted a new 52-week high in early November, when steel prices reached their 52-week low. Since then, the shares have climbed by 7.7%, including a drop of 10.7% in December. In mid-December, the company issued a downbeat preliminary report for the fourth quarter, citing slowing demand due to the macroeconomic environment. Steel prices have increased by about 16% over the past two months but remain about 20% below their 52-week high.
Just two analysts cover the stock, and they are split in their views. One rates the shares at Strong Buy and the other has a Hold rating. At a share price of around $30.65, the upside potential to a median price target of $36.00 is 17.5%. The median and high price targets are the same.
For the first quarter of fiscal 2023, which ended in November, the sales estimate is $602.73 million. That would be down 32.6% sequentially and 24.5% lower year over year. Analysts expect an adjusted loss per share of $0.46, down from EPS of $0.50 in the prior quarter and EPS of $1.58 in the year-ago quarter. For the full fiscal year ending in August, EPS are forecast at $1.15, down 81.1%, on sales of $2.82 billion, down 19.2%.
The stock trades at 27.5 times expected 2023 EPS, 11.5 times estimated 2024 earnings of $2.75 and 6.9 times estimated 2025 earnings of $4.56 per share. The stock’s 52-week range is $25.96 to $59.70. The low was posted last Friday. Schnitzer Steel pays an annual dividend of $0.75 (yield of 2.45%). Total shareholder return for the past 12 months is negative 37.7%.
Walgreens
Dow component Walgreens Boots Alliance Inc. (NYSE: WBA) was one of 2023’s Dogs of the Dow, the 10 stocks that paid the best dividend yield at the end of December 2022. The stock has dropped by more than 28 over the past 12 months but managed to add more than 18% to its share price over the past three months.
Last month, Walgreens and rival CVS agreed to pay about $10.7 billion (Walgreen’s share is $5.7 billion over 15 years) to settle lawsuits related to the drug stores’ role in selling opioids. Neither company admitted to doing anything wrong.
Of 17 analysts covering the stock, 12 have a Hold rating and two rate the shares at Sell or Strong Sell. At a price of around $37.00 a share, the upside potential based on a median price target of $40.00 is 8.1%. At the high target of $54.00, the upside potential is nearly 50%.
For the company’s first quarter of fiscal 2023, analysts are expecting revenue of $32.97 billion, up 1.6% sequentially but down 2.7% year over year. Adjusted EPS are forecast to come in at $1.14, up 42.4% sequentially and 32.1% lower year over year. For the full fiscal year that ends in August, consensus estimates call for EPS of $4.49, down 10.8%, on revenue of $133.3 billion, down about 0.5%.
Walgreens stock trades at 8.3 times expected 2023 EPS, 7.7 times estimated 2024 earnings of $4.80 and 7.2 times estimated 2025 earnings per share of $5.16. The stock’s 52-week range is $30.39 to $55.00, and Walgreens pays an annual dividend of $1.92 (yield of 5.14%). Total return over the past 12 months was negative 26.9%.
Originally published at 24/7 Wall St.
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