NEW YORK (TheStreet) -- Here's what Wall Street analysts are saying about airline stocks, software sales, lumber prices and more. Investing ideas for Friday, Jan. 20:
1.) Take another look at the airline sector
JP Morgan is getting slightly more bullish on the airline sector. "We are substantially revising our 2012 assumptions, moving away from recessionary inputs for the first time since September 2011," said the firm in a recent research note.
The airline industry may be headed for a third straight year of profits even though fuel prices are rising. Some of the difficulties that have cut into airline growth in 2011 were austerity measures in the eurozone, changes in regulation, new taxes and of course, the Japanese earthquake and tsunamis. Despite the threat of more challenges going forward, however, JP Morgan is upbeat. "Historically, just one of these curve balls could have proved highly damaging. But today, the barrage of exogenous shocks hasn't yet managed to derail profitability," it says.JP Morgan is revising it macroeconomic forecast, including bumping up its estimate for 2012 oil prices to $105, after projecting $85 last September. The firm also estimates the U.S. economy to growth at a rate of 3.9% in nominal terms. These two factors will boost airline revenue to plus 5% from an initial flat estimate, says the firm. At the same time, JP Morgan reminds investors that earnings estimate for airline stocks shouldn't change by much. "Our estimates are merely trimmed and our thesis remains the same."
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
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
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
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 + 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