"UAL (UAL, NYSE, around $144) is our No. 1 choice in the airline group. The stock has risen sharply in recent trading. We believe the market is clearly looking ahead to 1992, when the company, we think, will earn at least $18 per share," says Helane Becker of Shearson Lehman Brothers.
"Further, we believe that the company could earn about $24 per share at the peak of the next cycle, which is likely to occur in 1993 or 1994.
We believe that the stock still has more room to go on the upside. Our price target remains $200 per share."
"Delta (DAL, NYSE, around $75) has finances that are among the best in the industry, and it has historically been one of the most profitable airlines," says Dow Theory Forecasts of Hammond, Ind.
"The company's strong balance sheet gives it the flexibility to make aggressive bids. Delta is also expanding internally, adding international and domestic routes. Expansion costs will likely restrain earnings in 1991. The stock has rebound potential and represents a top holding in the airline sector for long-term growth."
"Jan Bell (JBM, ASE, $9) is a major provider of moderately priced jewelry, watches and perfume for wholesale membership clubs and discount retailers. Sales, earnings and cash flow have doubled in the last four years," says Stephen Leeb's Indicator Digest of Alexandria, Va.
Free cash flow now yields 8.3 percent. The company carries no long-term debt and has minimal capital spending requirements. We look for strong earnings growth in 1991. We believe this small stock could be a big winner in the months ahead."
"Syms (SYM, NYSE, around $9), which operates a leading chain of off-price clothing stores, is our latest buy recommendation," says Hugh Murray of Forsyth Equity Letter of St. Louis.
The stock has suffered a sharp drop in price in recent months, as same-store sales figures have been lower than expected. But the company could enjoy a strong resurgence later in the year. If the recession is deep, Syms is likely to benefit from an increase in shoppers seeking discounted prices.
"Our target price is $20 per share."