3. AirTran Holdings (AAI)
Company Profile: AirTran is a low-cost scheduled airlines in the U.S. in terms of departures and seats offered. It operates scheduled airline service throughout the U.S. and to selected international locations.
Share Price: $4.54 (Sept. 8)2010 Stock Performance: -13% Analyst Consensus: Ten of the 16 analysts covering AirTran recommend that investors buy shares of the airline company. Another five suggesting holding the stock, while one research firm has a "sell" rating on the stock. The average of nine recent stock-price targets is $7.78, which is 71% above where the stock currently trades. Bullish Case: Deutsche Bank analyst Michael Linenberg wrote in a July 23 research note that he is anticipating stronger earnings from AirTran for the second half of 2010. "AirTran is continuing to make the right decisions in terms of capacity," Linenberg wrote. "In addition, the company scaled back its 2011-2012 delivery schedule for Boeing 737s by 20%, resulting in planned capacity growth of 3%-4% during those years."