Top Summer Stocks: IMAX, Callaway, Aaon

BOSTON (TheStreet) -- Summer is expected to bring unusually hot weather to southern states, according to the Climate Prediction Center. Here are some stocks that could benefit.

3. Aaon(AAON) makes air conditioning equipment. If summer temperatures rise, as expected in the South, this Tulsa, Okla.-based company will benefit. TheStreet rates it "buy."

Quarter: First-quarter profit decreased 24% to $5.1 million, or 30 cents a share, as revenue dropped 23% to $49 million. The operating margin inched up from 16% to 17%. Aaon has $25 million of cash, converting to a quick ratio of 1.8, and no debt.

Stock: Aaon has advanced 15% during the past year, underperforming U.S. stock-market indices. It trades at a price-to-projected-earnings ratio of 14, a 56% discount to its peer average. The shares are expensive based on book value and sales.

Consensus: Of analysts covering Aaon, two, or 67%, advise purchasing its shares and one recommends holding them. Sidoti & Co. believes Aaon is fairly valued at $24 a share. Since 2007, Aaon has delivered annualized gains of 8%, beating indices.