I ran a screen for broker rating changes last week or so and picked out the stocks, which have been upgraded by the brokers and have relatively high cash reserves. I use a measure of P/C (Price/Cash) Ratio: The lower the ratio, the more cash in the company account you are buying with the stock.
This list is a quick pick list only. You may require further research into each of the stocks before making an investment decision. However, I believe it can give some food for thought if you are looking for cash-rich stocks and their recent positive fundamental changes.
1) Prudential Financial, Inc. (PRU), through its subsidiaries, provides various financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management services in the United States, Asia, Europe and Latin America.
On July 17, 2012, Prudential Financial was upgraded from Moderate Buy to Strong Buy by Raymond James.
The company has a Price/Cash Ratio of 1.60 (cash per share: $30.28; last closing price: $48.57). Other market ratios: P/E Ratio of 11.93, Forward P/E Ratio of 6.26, P/S Ratio of 0.47, P/B Ratio of 0.65, PEG Ratio of 1.00.
The median target price projected by analysts is $66.00, which means 35.9% upside potential from Thursday's price of $48.57.
2) Southwest Airlines Co. (LUV) operates a passenger airline that provides scheduled air transportation in the United States.
On July 10, 2012, Southwest Airlines was upgraded to Strong Buy from Hold by Sterne, Agee & Leach, Inc.
The company has Price/Cash Ratio of 1.86 (cash per share: $4.93; last closing price: $9.15). Other market ratios: P/E Ratio of 26.14, Forward P/E Ratio of 8.39, P/S Ratio of 0.42, P/B Ratio of 0.99, PEG Ratio of 0.87.
- On July 9, 2012, Southwest Airlines Co announced that the company, together with its subsidiary, AirTran Airways, Inc., has reached an agreement with Delta Air Lines, Inc., and Boeing Capital Corp., to lease or sublease all 88 of AirTran's Boeing 717 aircraft to Delta.
The median target price projected by analysts is $11.75, which means 28.4% upside potential from Thursday's price of $9.15.
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