Avon Is a Stock for the Brave

We highlighted Avon Products as a stock to watch at year-end. Six months later, it's 10% lower and we are now starting to warm up to it. We are not ready to buy (yet), but Avon Products (AVP) is slowly becoming more interesting.

The valuation is particularly attractive at approximately 0.7x sales and less than 10x normalized earnings of $1.50 per share. Branded consumer products companies typically trade for at least 1.5x sales and 15x to 20x earnings. Based on these metrics, Avon is selling at a highly depressed and attractive valuation level. ...567 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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