10. DeVry (DV) is a for-profit educator.
Although it faces near-term regulatory pressures, it is best-positioned within the industry to adapt quickly and regain financial footing in 2011, according to Barclays. The bank forecasts mid-single-digit student growth over the next three years, boosting margins, which will be pressured initially in 2011.
It forecasts 15% to 18% growth in 2011 and 2012. With a four to one ratio of upside reward to downside risk, it thinks the shares are cheap based on expected growth and has a target of $60. DeVry trades at a forward earnings multiple of 9.3 and a cash flow multiple of 8.2, 47% and 20% peer discounts.
9. Western Union (WU) has "among the best risk/rewards profiles" in Barclays coverage universe. It is cheap relative to peer and historical valuations. The transaction processor and money transfer company will benefit from secular growth and a mix shift towards domestic transactions in 2011, which should bolster margins. Its new prepaid card offering is predicted to expand faster than competitors' products. Barclays, known for conservative price targets, sees significant upside to its model for Western Union, if transaction growth exceeds expectations. Of analysts covering the stock, 18, or 67%, rate it "buy", eight rate it "hold" and just one ranks the shares "sell."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV