"Dycom Industries (DY, NYSE, near $10) which provides telecommunications installation services, is a buy," says Dathan Gaskill, Stephens Inc.
"Earnings for the fiscal year just ended should reach $1.06-1.08 a share vs. 81 cents for the prior year. For fiscal 1992, we look for earnings to reach $1.27. The firm's business is somewhat recession resistant due to the level of revenues generated from working for phone and electric utility companies. The company's fundamentals remain strong; we continue to estimate annual growth at 20 percent."
Todd Richter, Dean Witter Reynolds, rates CarePlus (CPLS, OTC, around $12) a buy.
"The firm is a high-quality provider of home-infusion therapy; infusion therapy involves the intravenous delivery of nutrients or medications. A new management team took control in 1987 . . . The firm should achieve 40 percent annual earnings growth over the next two years. Earnings are expected to reach 60 cents a share in fiscal 1990 vs. 40 cents a share reported in fiscal 1989; for 1991, we look for 85 cents a share."
"SunTrust (STI , NYSE, mid teens) remains our favorite large capitalization bank stock in the Southeast," says Katherine Hensel, Shearson Lehman.
"Based on conversations with management, we believe the current quarter is progressing on track. We estimate earnings for the quarter of 68 cents a share, up slightly from the 66 cents earned a year ago. Loan growth is predominantly coming from the firm's Florida operations. Meanwhile, cost containment programs are in place, and we don't expect any surprises on the expense side."
"Florida Progress (FPC, NYSE, mid $30s) is a new buy recommendation," says Thomas Serzan, Gruntal.
"The firm's core electric customer base is comprised primarily of residential and commercial sales; as such, power usage is less susceptible to the business cycle. In addition, the economy in the utility's service territory continues to experience growth as migration to the Sunbelt continues . . . In addition, the firm's diversification strategy into non-utility businesses has proven successful . . . The issue currently yields of 7.7 percent."