Stocks Reach Their 3-Year Lows

Prices of American Express, State Street, Eaton, Western Digital tumble

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Jan 25, 2016
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According to GuruFocus' list, American Express Co. (AXP, Financial), State Street Corp. (STT, Financial), Eaton Corp. PLC (ETN, Financial) and Western Digital Corp. (WDC, Financial) have reached their three-year lows.

American Express reached $55.06

The prices of American Express shares have declined to $55.06, which is 43.7% off the three-year high of $96.24.

American Express has a market cap of $54.19 billion. Its shares were traded at around $55.06 with a P/E ratio of 9.90 and a P/S ratio of 1.67. The dividend yield of American Express stocks is 2.05%, and the company had an annual average earnings growth of 9.70% over the past 10 years.

American Express reported third quarter 2015 net income of $1.3 billion, down 14% year over year. Diluted EPS was down 11% to $1.24 compared to $1.40 for the prior-year quarter. The company had a return on equity of 26.8% for the third quarter of 2015, down from 28.8% a year ago.

President-Risk/Info Mgmt. and CRO Ashwini Gupta sold 103,084 shares of American Express stock on Nov. 20, 2015 at the average price of $72.48.

State Street reached $55.83

The prices of State Street shares have declined to $55.83, which is 34.5% off the three-year high of $81.26.

State Street Corp has a market cap of $22.53 billion. Its shares were traded at around $55.83 with a P/E ratio of 13.10 and a P/S ratio of 2.23. The dividend yield of State Street stocks is 2.36%. The company had an annual average earnings growth of 2.10% over the past 10 years. GuruFocus rated State Street the business predictability rank of 2-star.

For its third quarter of 2015, the company reported GAAP EPS of $1.32 and revenue of $2.6 billion. Operating basis EPS was $1.16. EPS for the third quarter of 2014 was $1.26. Return on common equity for the third quarter of 2015 was 11.3% compared with 10.6% a year ago.

Chairman and CEO Joseph L. Hooley sold 36,871 shares of State Street stock on Nov. 23, 2015 at the average price of $72.98.

Eaton reached $48.51

The prices of Eaton  shares have declined to $48.51, which is 42.2% off the three-year high of $79.98.

Eaton has a market cap of $22.45 billion, and its shares were traded at around $48.51 with a P/E ratio of 11.20 and a P/S ratio of 1.07. The dividend yield of Eaton stocks is 4.54%. The company had an annual average earnings growth of 3.70% over the past 10 years.

Eaton reported third quarter 2015 net sales of $5.2 billion and net income of $446 million. This compares to sales of $5.7 billion and net income of $602 million for the same quarter of 2014. Diluted EPS was down to 96 cents compared with $1.26 a year ago. Operating cash flow for the quarter was $973 million.

Director Gregory R. Page bought 1,000 shares of Eaton stock on Dec. 14, 2015 at the average price of $50.39.

Western Digital reached $44.75

The prices of Western Digital shares have declined to $44.75, which is 62.4% off the three-year high of $114.69.

Western Digital has a market cap of $10.37 billion; its shares were traded at around $44.75 with a P/E ratio of 8.00 and a P/S ratio of 0.75. The dividend yield of Western Digital stocks is 4.47%. The company had an annual average earnings growth of 21.80% over the past 10 years. GuruFocus rated it the business predictability rank of 3-star.

The company  released its fiscal first quarter 2016 results ended Oct. 2, 2015. GAAP-revenue was $3.4 billion for the quarter, and net income was $283 million, or $1.21 per share. Non-GAAP income was $366 million, or $1.56 per share. This compares to GAAP revenue of $3.9 billion and net income of $423 million, or $1.76 per share for the first quarter of 2015.

CEO Stephen D. Milligan sold 6,239 shares of WDC stock on Nov. 2, 2015 at the average price of $66.33. EVP, Chief Legal Officer and Secretary Michael Charles Ray sold 1,863 shares of WDC stock on Dec. 7, 2015 at the average price of $63.59.

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