Even though JPMorgan (NYSE:JPM) downgraded the consumer discretionary sector from "Overweight" to "Neutral," that didn't stop stocks like Ford (NYSE:F) from jumping, as they surpassed General Motors (NYSE:GM) in sales for the month of March. Gambling businesses like Las Vegas Sands (NYSE:LVS) also went against the grain, as they have been rising on news gambling revenue in Macau soared.
The reasoning JPMorgan had behind the downgrading of the consumer discretionary sector, which they view as a short-term event, was that it has been overall "structurally weaker" for some time. They also see economic momentum starting to slow down while the sector continues to have high valuations.
As for other sectors, they pointed out some of their favorites and least favorite stocks, with their worst ones including Valley National (NYSE:VLY), Navistar (NYSE:NAV) and Principal Financial Group (NYSE:PFG).
Stocks that found favor with JPMorgan, among a number of them, include Amgen (NASDAQ:AMGN), Gilead (NASDAQ:GILD), Aetna (NYSE:AET), Cigna (NYSE:CI), Delta Airlines (NYSE:DAL), UAL (NYSE:UAL), Medco Health Solutions (NYSE:MHS) and Life Technologies Corp (NASDAQ:LIFE).
Showing posts with label UAL Corp. Show all posts
Showing posts with label UAL Corp. Show all posts
Friday, April 1, 2011
Wednesday, January 5, 2011
AMR (NYSE:AMR), Delta (NYSE:DAL), UAL (NYSE:UAL) Top Barclays US Airline Picks
Barclays is fairly upbeat about the U.S. airline industry, and their top picks in the sector remain AMR Corp (NYSE:AMR), Delta (NYSE:DAL) and UAL Corp (NYSE:UAL).
Barclays said, "Airlines should begin reporting December RASM this week. We expect to see deceleration in year-over-year compares given substantially tougher comps from last year, but underlying trends remain very encouraging. The storm in late December will probably dent earnings for the quarter, but it is unclear what impact it will have on RASM; for now we assume a neutral impact. Storm recovery wasn't the only thing on the industry's mind late in December. Fare initiatives continued with the industry intent on recovering a rising fuel burden in 2011. We believe excessive focus on near-term fuel movement is a mistake and would take advantage of any share price weakness it creates. Favorites remain AMR Corp, Delta and UAL Corp."
AMR closed Tuesday at $8.10, up $0.18, or 2.27 percent. Delta closed at $12.53, down $0.05, or 0.40 percent. UAL closed at $25.53, gaining $0.40, or 1.59 percent.
Barclays said, "Airlines should begin reporting December RASM this week. We expect to see deceleration in year-over-year compares given substantially tougher comps from last year, but underlying trends remain very encouraging. The storm in late December will probably dent earnings for the quarter, but it is unclear what impact it will have on RASM; for now we assume a neutral impact. Storm recovery wasn't the only thing on the industry's mind late in December. Fare initiatives continued with the industry intent on recovering a rising fuel burden in 2011. We believe excessive focus on near-term fuel movement is a mistake and would take advantage of any share price weakness it creates. Favorites remain AMR Corp, Delta and UAL Corp."
AMR closed Tuesday at $8.10, up $0.18, or 2.27 percent. Delta closed at $12.53, down $0.05, or 0.40 percent. UAL closed at $25.53, gaining $0.40, or 1.59 percent.
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