The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.By David Sterman NEW YORK ( StreetAuthority) -- In the market's remarkable run-up in the past two years that saw the major averages roughly double from the March 2009 lows, an increasing number of investors have looked to take profits in some of their best picks. As a result, some of these stocks have lost their momentum and have pulled back from recent peaks. Here are three names I've been watching that are now quite nicely priced.
Prior to that upturn in traffic, analysts had recently downgraded their expectations from a small first-quarter profit to a small first-quarter loss. Yet their initial view of profits (instead of losses) will indeed likely be the case, and I expect JetBlue to handily top consensus forecasts after missing the consensus in the last two quarters. That same logic extends over the full year. The steady rate hikes I mentioned earlier have not been incorporated into analysts' models. JetBlue has the choice of holding fares steady and filling more seats, or joining peers with hikes. Recent fare surges imply a middle-ground approach -- moderate fare hikes that will still lead to fuller planes. As that plays out, investors may again notice that shares are quite reasonable in relation to earnings. Per-share profits are expected to grow 30% in 2011 and 2012, and the stock is currently worth just 10 times projected 2012 profits. As the economic rebound continues, shares could rise from a recent $5.75 to the $8 mark by year's end. That's a potential 40% gain.
I profiled American Superconductor nearly a year ago, and what I wrote then still applies. The company has a key blue-chip customer -- China's Sinovel -- which shows no signs of slowing down, and other key customers are signing up as well. Right now, clean energy stocks are out of favor, but this name always zooms ahead when investors rotate back into this group. I see a quick move back to $35 when that happens. Action to Take: Good companies on sale -- that's what I'm always looking for. These three companies have robust growth prospects and now have more appealing valuations. Any one of them would make a nice potential addition at current prices. This article originally appeared on StreetAuthority. To read more articles from David Sterman on StreetAuthority, you can visit this link . >To see these stocks in action, visit the 3 Great Value Stocks portfolio on Stockpickr. Disclosure: At the time of publication, David Sterman owned no positions in the stocks mentioned.
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