Avon is Calling: Invest In The Growth or Speculate On The Takeover


Avon’s Historical Operating Results and Price Action

Since 2008 Avon’s earnings have continuously eroded and its stock price has followed. Moreover, after its dividend grew for many years, the company cut it by 18 ½% for 2012, slashed it an additional 68% in 2013 and then eliminated their dividend altogether in 2016. As a result, investing in Avon has been a significant losing proposition for more than a decade.

Avon From Value Trap to Growth Stock: Future Earnings Estimates

However, that has changed dramatically thus far in fiscal and calendar year 2019. Year-to-date Avon’s stock has appreciated over 153% from $1.52 per share on December 31, 2018 to $3.86 at the close on May 28. Additionally, per share earnings are forecast to approximately triple from $0.03 a share in 2018 to an estimate of $0.12 a share in 2019.