"We continue to like FPL Group (FPL, NYSE, around $35), the holding company for Florida Power & Light," says Greg Smith of Prudential Securities.
"The utility services one of the fastest-growing regions in the United States. Despite the economic slowdown, the utility added new customers in 1990 at a rate that was twice the national average. The stock also has a current yield of 6.9 percent. We estimate that earnings will reach $2.65 a share in 1991 and $2.80 in 1992. We rate the stock a buy."
"BellSouth (BLS, NYSE, around $47) has dropped to the bottom of its recent trading price range, providing income-oriented investors with a good buying opportunity," says Dow Theory Forecasts of Hammond, Ind.
"Recent results have been hampered by sluggish service regions and rate cuts tied to incentive regulation. However, earnings growth is expected to resume in 1992. Yielding 6 percent and selling at a modest multiple of expected 1992 earnings, the stock offers excellent value at current prices."
"We think Wackenhut (WAK, NYSE, around $24) is one of the best bargains in the current stock market," says Don Hidges of First Dallas Securities.
"The firm is in a growth industry, providing security services. It is also involved in the operation of private prisons, another growth area. The company has consistently increased its earnings. We believe Wackenhut will earn $2 a share this year, up from $1.80 in 1990. We feel the company could earn $2.20 per share next year. The stock appears to be a good value."
"Syms (SYM, NYSE, around $8) is potentially a 'hot' stock, with an attractive record and powerful earnings," says Allan Roness of Fahnestock & Co.
"The company operates 28 off-price retail stores along the Eastern seaboard. We believe the positives will soon be recognized by investors and lead to a higher P/E multiple for this issue. We feel the stock should trade at 15 times our 1992 estimate, suggesting a target price of 16 1/2 . Purchase of the stock is recommended for aggressive investors. Buy."