1. AMR Corp. ( AMR) owns American Airlines. Its stock has risen 2.3% in 2010. Barclays has a positive view of the airline industry, predicting record profitability in 2011. Specifically, it believes AMR has "the best cash flow and incremental earnings potential" among carriers. It expects higher cost reductions resulting from a re-fleeting program and greater cash flow generation than other researchers. It valued AMR's stock using a proprietary option valuation model and generated a target of $18, implying 127% of upside. Risks to this thesis include higher-than-anticipated jet fuel prices and failure to achieve unit cost reductions from re-fleeting.