Icarus Signal New Entries For Today

This story features WEB TRAVEL GROUP LIMITED. For more info SHARE ANALYSIS: WEB

The company is included in ASX200, ASX300 and ALL-ORDS

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

Whatever it is that is attracting fresh funds into Webjet ((WEB)) shares this month, it is pushing the valuation into stretched territory and thus Icarus makes his warning known as of today. Strictly taken one could argue that paying 13x times projected earnings per share for the present fiscal year doesn't look like too much of a stretch given projected growth for this year is 18%. This is a reminder of the old rule set in stone by Peter Lynch that one should never pay up for a PE that is higher than the growth rate.

Alas, if we look further into FY13 projections we see consensus is only predicting 12% growth and the corresponding PE for that year already sits at 11.6. This would suggest the shares are getting close to fully valued and certainly the consensus target derived from four stockbrokers in the FNArena database suggests this is the case.

Webjet does (still) offer above average dividend yield.

Apart from Webjet, six others newly joined the list of stocks trading close to but still below target. All of these newcomers, including Webjet, were trading above target previously. There are now 14 stocks trading close to target and 17 stocks above target.

Fortescue Metals ((FMG)) has again joined the Bottom 50 and so has Finders Resources ((FND)) following the initiation of coverage by RBS.

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 AUN $ 1.19 $ 1.20 0.67% 2 BKW $ 11.06 $ 11.11 0.41% 3 CAH $ 1.74 $ 1.75 0.86% 4 CUS $ 1.05 $ 1.05 0.38% 5 MTS $ 4.19 $ 4.21 0.38% 6 RHC $ 18.60 $ 18.74 0.77% 7 WEB $ 2.20 $ 2.22 1.05%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%)

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 FMG $ 4.65 $ 7.76 66.84% 2 FND $ 0.38 $ 0.67 76.32%

To see the full Icarus Signal, please go to this link

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

Click to view our Glossary of Financial Terms