Are These 6 Stocks Good Takeover Targets?

Barron’s is reporting that Deutsche Bank (NYSE:DB) strategists have come up with a list of potential takeover candidates, based on criteria such as having sufficient free cash flow to take on more debt (via a leveraged buyout), low price-to-earnings, price-to-book, and EV/EBITDA ratios.

Following is some information on some of the companies Deutsche Bank highlighted in its report.

  • Apollo Group (NASDAQ:APOL): The shares have traded in a 52-week range of $33.75 to $53.61 and most recently traded at $44.53.  Its market capitalization is $6.31 billion and it earned $2.66 per share last year.  Its forward P/E ratio is 14.11, its PEF ratio is 1.38, its price to sales ratio is 1.27, its price to book ratio is 4.8, and its EV/EBITDA ratio is 1.1.  About the company: Apollo Group, Inc. provides higher education programs for working adults.  The Company provides educational programs and services at the high school, undergraduate, and graduate levels online and on-campus through subsidiaries. Competitors to Watch: DeVry (NYSE:DV), Career Education Corp. (NASDAQ:CECO), American Public Education, Inc. (NASDAQ:APEI), National American Univ. Hldgs., Inc. (NASDAQ:NAUH), Corinthian Colleges, Inc. (NASDAQ:COCO), Grand Canyon Education Inc (NASDAQ:LOPE), Bridgepoint Education, Inc. (NYSE:BPI), Education Management Corp (NASDAQ:EDMC), Strayer Education, Inc. (NASDAQ:STRA), and The Washington Post Co. (NYSE:WPO).
  • American Electric Power (NYSE:AEP): The shares have traded in a 52-week range of $31.21 to $38.99 and most recently traded at $37.54.  Its market capitalization is $18.09 billion and it earned $2.54 per share last year.  Its forward P/E is 11.63, its PEG ratio is 3.29, its price to sales ratio is 1.24, its price to book ratio is 1.31, and its EV/EBITDA ratio is 7.46.  About the company: American Electric Power Company, Inc. is a public utility holding company.  The Company provides electric service, consisting of generation, transmission and distribution, on an integrated basis to their retail customers.  AEP serves portions of the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. Competitors to Watch: CenterPoint Energy, Inc. (NYSE:CNP), Duke Energy Corporation (NYSE:DUK), FirstEnergy (NYSE:FE), Cleco (NYSE:CNL), PPL Corp (NYSE:PPL), Southern Company (NYSE:SO), DPL Inc (NYSE:DPL), Westar (NYSE:WR), NextEra (NYSE:NEE), Constellation Energy (NYSE:CEG), Progress Energy (NYSE:PGN) and Entergy Corporation (NYSE:ETR).
  • Gannett (NYSE:GCI): The shares have traded in a 52-week range of $11.65 yo $18.93 and most recently traded at $13.53.  Its market capitalization is $3.25 billion and it earned $2.32 per share last year.  Its forward P/E is 5.66, its PEG ratio is 0.77, its price to sales ratio is 0.61, its price to book ratio is 1.43, and its EV/EBITDA ratio is 4.3.  About the company:  Gannett Co., Inc. is an international news and information company that publishes various daily newspapers in the United States and the United Kingdom, including “USA TODAY” and “USA WEEKEND,” a newspaper magazine.  The Company also operates television stations in major United States markets as well as operates websites offering news, information and advertising. Competitors to Watch: News Corporation (NASDAQ:NWSA), The McClatchy Company (NYSE:MNI), Meredith Corporation (NYSE:MDP),The New York Times Company (NYSE:NYT), AOL, Inc. (NYSE:AOL), and Google (NASDAQ:GOOG).
  • Kohl’s (NYSE:KSS): The shares have traded in a 52-week range of $44.07 to $58 and most recently traded at $50.41 per share.  Its market capitalization is $14.17 billion and it earned $3.75 per share last year.  Its forward P/E is 9.96, its PEG ratio is 0.87, its price to sales ratio is 0.77, its price to book ratio is 1.84, and its EV/EBITDA ratio is 5.58.    About the company:  Kohl’s Corporation operates a chain of family-oriented department stores.  The Company’s stores feature apparel, footwear and accessories for women, men and children; soft home products such as sheets and pillow; and housewares targeted to middle income customers.  Kohl’s also offers online shopping as well as offers store credit cards. Competitors to Watch: J.C. Penney Company, Inc. (NYSE:JCP), Sears Holdings Corporation (NASDAQ:SHLD), Macy’s, Inc. (NYSE:M), The Bon-Ton Stores, Inc. (NASDAQ:BONT), Dillard’s, Inc. (NYSE:DDS), Saks Incorporated (NYSE:SKS), Nordstrom, Inc. (NYSE:JWN), Wal-Mart (NYSE:WMT), Nordstrom (NYSE:JWN), The TJX Companies (NYSE:TJX), Target Corporation (NYSE:TGT), Overstock.com, Inc. (NASDAQ:OSTK), and QKL Stores Inc (NASDAQ:QKLS).
  • Symantec (NASDAQ:SYMC): The shares have traded in a 52-week range of $12.04 to $20.50 and most recently traded at $18.70 per share.  Its market capitalization is $14.13 billion.  Its forward P/E ratio is 10.45, its PEG ratio is 1.21, its price to sales is 2.29, its price to book is 31.4 and its EV/EBITDA is 8.29.  About the company:  Symantec Corporation provides security, storage and systems management solutions to help businesses and consumers secure and manage their information.  The Company offers software and services that protect, manage and control information risks related to security, data protection, storage, compliance and management. Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Websense Inc. (NASDAQ:WBSN), Oracle Corporation (NASDAQ:ORCL), CA, Inc. (NASDAQ:CA), VMware, Inc. (NYSE:VMW), Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Novell, Inc. (NASDAQ:NOVL), Guidance Software, Inc. (NASDAQ:GUID), and Intel Corporation (NASDAQ:INTC).
  • Gap (NYSE:GPS): The shares have traded in a 52-week range of $16.62 to $23.73 and most recently traded at $17.52.  Its market capitalization is $10.21 billion.  Its forward P/E is 10.13, its PEG ratio is 1.42, its price to sales is 0.71, its price to book is 2.77, and its EV/EBITD is 3.66.  About the company:  The Gap, Inc. is an international specialty retailer operating retail and outlet stores.  The Company sells casual apparel, accessories and personal care products for men, women and children.  The Gap operates stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan. Competitors to Watch: Urban Outfitters, Inc. (NASDAQ:URBN), Abercrombie & Fitch Co. (NYSE:ANF), The Gymboree Corporation (GYMB), The Buckle, Inc. (NYSE:BKE), American Eagle Outfitters (NYSE:AEO), J. Crew Group, Inc. (NYSE:JCG), Aeropostale, Inc. (NYSE:ARO), Children’s Place Retail Stores, Inc. (NASDAQ:PLCE), The Walking Co. Hldgs., Inc. (WALK), and The Wet Seal, Inc. (NASDAQ:WTSLA).

(Note: The list of companies was sourced from here, and selected financial data are taken from Yahoo! Finance.  All data are assumed to be accurate.)

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