NEW YORK (TheStreet) -- These six stocks were upgraded by TheStreet Ratings to a buy on Tuesday: Southwest Airlines (LUV), Macerich (MAC), Hologic (HOLX), Beam (BEAM), Diebold (DBD) and Associated Banc-Corp (ASBC).
The airline on Tuesday said revenue passenger miles in January fell 2.7% from the previous year to 7.4 billion.
Southwest also announced last week that it was adding flights from Denver and Austin, Texas to Cancun."Southwest Airlines expects 2012 capacity to be flat with 2011, which will help the company to improve passenger unit revenue to offset higher y/y jet fuel prices," Dahlman Rose analysts wrote in a Jan. 20 report. "With no capacity growth this year, Southwest expects mid- to high-single digit passenger unit revenue growth. January and February are expected to see growth of 7%-8%, with March expecting to slow." Southwest Airlines was upgraded to a buy from a hold by TheStreet Ratings. Of the 17 analysts who cover the stock, eight rated it a buy and an equal number considered it a hold. One analyst gave Southwest a sell rating. Southwest has an estimated price-to-earnings ratio for next year of 8.91. The average among the airlines is 8.46. Both Delta (DAL) and United Continental Holdings (UAL) have lower forward P/Es of 4.1 and 3.92, respectively. TheStreet Ratings gives Southwest a B- grade with a $11.60 price target. The stock closed Monday at $9.75; it has risen 13.9% year to date.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV