Stocks

We are upgrading our recommendation on United Continental Holdings (UAL) to Outperform. Though we remain concerned about escalating fuel prices, United Continental is able to pass on higher costs to its customers in the form of fare hikes. The company's first quarter earnings soared on higher fares despite steeper fuel prices. We believe United Continental will continue to benefit from merger synergies, global network, strong competitive positioning, low costs, fleet optimization and a strong liquidity position. The trend of combating rises fuel prices with higher fares is also likely to continue. In addition, United Continental hedges its fuel position that restricts its losses and provides increased profitability. The stock is trading at a discount to the peer group as well as the S&P 500 benchmark. We are recommending an Outperform rating with the target price of $27, based on 7.2x our earnings estimate for 2011.

Stocks trading at or near 52-week highs and lows provide excellent trading opportunities, as volatility tends to increase at such levels. The following stocks hit new 52-week highs in Monday's trading session (listed from highest total volume to lowest): 1) BioSante Pharmaceuticals (NASDAQ: BPAX): Shares of BioSante hit a 52-week high of $3.84 in Monday's trading session. The stock closed at $3.62. The year-to-date performance of BioSante has been a gain of 198%. 2) Arch Chemicals (NYSE: ARJ): Shares of Arch Chemicals hit a 52-week high of $47.75 in Monday's trading session. The stock closed at $47.37. The year-to-date performance of Arch Chemicals has been a gain of 25.6%. 3) Coffee Holding (NASDAQ: JVA): Shares of Coffee Holding hit a 52-week high of $30.98 in Monday's trading session. The stock closed at $29.35. The year-to-date performance of Coffee Holding has been a gain of 693%. 4) Hansen Medical (NASDAQ: HNSN): Shares of Hansen Medical hit a 52-week high of $4.84 in Monday's trading session. The...

Stocks trading at or near 52-week highs and lows provide excellent trading opportunities, as volatility tends to increase at such levels. The following stocks hit new 52-week highs in Friday's trading session (listed from highest total volume to lowest): 1) Melco Crown Entertainment (NASDAQ: MPEL): Shares of Melco Crown hit a 52-week high of $14.19 in Friday's trading session. The stock closed at $13.98. The year-to-date performance of Melco Crown has been a gain of 119.8%. 2) Western Refining (NYSE: WNR): Shares of Western Refining hit a 52-week high of $20.67 in Friday's trading session. The stock closed at $20.61. The year-to-date performance of Western Refining has been a gain of 94.8%. 3) BioSante Pharmaceuticals (NASDAQ: BPAX): Shares of BioSante Pharmaceuticals hit a 52-week high of $3.62 in Friday's trading session. The stock closed at $3.60. The year-to-date performance of BioSante has been a gain of 199.5%. 4) Hansen Medical (NASDAQ: HNSN): Shares of Hansen Medical hit a 52-week high of $4.70 in Friday's trading...

The following stocks hit new 52-week highs in Wednesday's trading session (listed from highest total volume to lowest): 1) Wendy's/Arby's Group (NYSE: WEN): Shares of Wendy's/Arby's hit a 52-week high of $5.45 in Wednesday's trading session. The stock closed at $5.41. The year-to-date performance of Wendy's/Arby's has been a gain of 17.1%. 2) Halliburton (NYSE: HAL): Shares of Halliburton hit a 52-week high of $52.72 in Wednesday's trading session. The stock closed at $52.66. The year-to-date performance of Halliburton has been a gain of 29.4%. 3) Kinetic Concepts (NYSE: KCI): Shares of Kinetic Concepts hit a 52-week high of $67.38 in Wednesday's trading session. The stock closed at $66.20. The year-to-date performance of Kinetic Concepts has been a gain of 58.1%. 4) Kraft Foods (NYSE: KFT): Shares of Kraft Foods hit a 52-week high of $35.87 in Wednesday's trading session. The stock closed at $35.85. The year-to-date performance of Kraft has been a gain of 15.8%. 5) Cablevision Systems (NYSE: CVC): Shares o Cablevision hit...

Neenah Paper, Inc. (NP) has seen big gains over the last year, currently lingering directly below its recent 52-week high at $23.75. With an average earnings surprise of 31% over the last four quarters and estimates on the rise, this Zacks #1 stock is a solid pick for growth. Company Description Neenah Paper, Inc., together with its subsidiaries, produces and sells fine papers and various technical paper products worldwide. The company was founded in 2004 and has a market cap of $324 million. As a small capper with a strong earnings growth, NP has seen big gains over the last year, with shares more than doubling from $10 to $23. That strong growth was on display in early May when the company reported another strong quarter that came in ahead of expectations. First-Quarter Results Revenue for the period was up 3% from last year to $173 million. Earnings also came in strong at 54 cents, 29% ahead of the Zacks Consensus Estimate, where the company...

Robbins & Myers, Inc. (RBN) recently jumped out of an extended period of consolidation and into a new all-time high after reporting solid Q1 results that met expectations. Estimates have since risen, providing more momentum for this Zacks #1 rank stock. Company Description Robbins & Myers, together with its subsidiaries, produces industrial goods like fluid management systems and processing solutions for a wide range of industries worldwide. The company was founded in 1878 and has a market cap of $2.5 billion. RBN saw big gains from September to February as the overall market posted an impressive 25% gain. But shares recently emerged from a multi-month consolidation pattern to hit a new all-time high after reporting another solid quarter. First-Quarter Results When including the company's acquisition of T-3, revenue was up 42% to $170. But when including T-3, sales almost doubled to $237 million. Earnings were directly in line with expectations at 53 cents, where the company has an average earnings surprise of 33% over the...

Some of the stocks that may grab investor focus today are: Wall Street expects WD-40 Company (NASDAQ: WDFC) to report its FQ3 EPS at $0.53 on revenue of $87.55 million. WDFC shares gained 0.89% to close at $40.85 yesterday. Zumiez Inc (NASDAQ: ZUMZ) reported a 9.8% rise in its June sales at stores open at least one year. Analysts were expecting same-store sales to increase 5.6%. Its total net sales for the five weeks ended July 2 surged 16.8% y/y to $43.5 million. ZUMZ shares jumped 2.05% to $26.85 in the after-hours trading session. Visa Inc (NYSE: V) projects its earnings-per-share growth to slow to the mid-to-high teens and revenue growth to slow to the high-single-digit to low-double-digit range in 2012. However, analysts were expecting 11% revenue growth and 16% earnings growth for 2012. The company affirmed its forecast for current fiscal year. Visa shares dropped 0.65% to $87.63 in after-hours trading. Analysts expect Helen of Troy Limited (NASDAQ: HELE) to report its Q1...

Monsanto Company (MON) is back in the game after a tough couple of years where earnings tumbled. The company recently raised full year guidance after reporting a strong fiscal third quarter. This Zacks #2 Rank (buy) is expected to grow earnings by 18% in fiscal 2011. Monsanto is an agriculture company that primarily focuses on seeds, including genetically modified seeds, and herbicides. It offers farmers a range of seeds including corn, soybeans, cotton, wheat, canola and sugar cane. Monsanto Surprised by 13.5% in the Fiscal Third Quarter On June 29, Monsanto reported its fiscal third quarter results and beat the Zacks Consensus Estimate by 15 cents. Earnings per share were $1.26 compared to the consensus of $1.11. It was the third beat in the last four quarters. Sales jumped 21% to $3.6 billion from $3 billion a year ago. All of its seed segments saw increased year over year sales, including its biggest seed division, corn, which rose to $1.12 billion from $1.02 billion from...

Littlefuse Inc. (LFUS) has posted big gains in 2011, recently rebounding from a long-term trend line to jump higher with the market. With four consecutive earnings surprises and rising estimates, this Zacks #1 rank stock is a solid pick for growth. Company Description Littlefuse, Inc. designs and manufactures circuit protection devices for the auto, electronic and electrical markets in the Americas, Europe and Asia. The company was founded in 1927 and has a market cap of $1.4 billion. Littlefuse has been pumping out big gains in 2011, helped by another strong from early May that came in ahead of expectations. First-Quarter Results Revenue for the period was up 16% from last year to $167 million. Earnings also looked good at $1.08, 2% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 7% over the last four quarters. Although the strong top line helped drive the quarter, the company noted that eclipsing a 20% operating margin in the traditionally weak first...

Wright Express Corp (WXS) recently rebounded from a key trend line to move back within striking distance of its recent 52-week high at $53.39. With estimates on the rise off another strong quarter, this Zacks #1 rank stock is on the fast track to momentum. Company Description Wright Express Corp, together with its subsidiaries, provides payment processing and information management products and services to commercial and government vehicle fleets in the IS, Canada, New Zealand, Australia and Europe. Wright Express has been a top momentum player in 2011, hitting a new multi-year high in early May after reporting another strong quarter. First-Quarter Results Revenue for the period was up 43% from last year to $120 million. Earnings also came in strong at 75 cents, 8& ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 6% over the last four quarters. The good quarter was driven by big improvements in a number of key areas, with average number of vehicles serviced...