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Speculating on companies that have recently changed their ratings can be a good short-term strategy. Normally, companies will see increases in their prices after these changes. I assessed companies which were upgraded on September 12 and I chose the top three companies with a significant change in ratings. Here is a look at the three stocks:

1. SkyWest Inc (NASDAQ:SKYW) through its subsidiaries, operates a regional airline in the United States. The company serves the United States, Canada, Mexico, and the Caribbean with approximately 3,900 daily departures and a fleet of approximately 727 regional aircraft. It also provides ground handling services for other airlines throughout its system. The company was founded in 1972 and is headquartered in St. George, Utah.

(click to enlarge)

- The MACD marks an upward trend. RSI marks overbought. The stock is in a bullish channel.

New Rating

Dahlman Rose upgraded SkyWest from Sell to Hold.

Helane Becker, analyst of Dahlman Rose, said:

SkyWest announced it has signed an agreement with American Airlines to operate 23 CRJ200 aircraft. These aircraft were previously placed with other carriers. This contract should lift any near-term uncertainty with the stock.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on August 8 with the following highlights:

Revenue$937.21 Million
Net Income$16.96 Million
Cash$108.71 Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20123,013,217381,2757.903002
8/15/20123,402,308726,2674.684652
7/31/20123,550,066548,6306.470784

My Analysis

The stock has a $10.5 price target from the Point and Figure chart. There has been one insider selling transaction last year. The short interest shows a substantial decrease. The MACD marks an upward trend and for this reason, I would purchase shares with a target price of $10.5.

2. J.B. Hunt Transport Services Inc (NASDAQ:JBHT) together with its subsidiaries, provides transportation and delivery services in the continental United States, Canada, and Mexico. The company operates in four segments: Intermodal (JBI), Dedicated Contract Services (DCS), Full-Load Dry-Van (JBT), and Integrated Capacity Solutions (ICS). The JBI segment provides intermodal freight solutions, including origin and destination pickup, and delivery services. This segment operates approximately 54,506 pieces of company-controlled trailing equipment; and manages a fleet of approximately 2,901 company-owned tractors. The DCS segment designs, develops, and executes supply-chain solutions, which support various transportation networks. In addition, the company transports, or arranges for the transportation of, a range of freight, including general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, electronics, and chemicals.

(click to enlarge)

- The MACD marks a change of upward trend. The stock is in a bullish channel. RSI is in a good position.

New Rating

BofA/Merrill Lynch upgraded J.B. Hunt Transport Services from Neutral to Buy.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on July 31 with the following highlights:

Revenue$1.25 Billion
Net Income$80.45 Million
Cash$5.88 Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/31/20124,675,868996,9224.690305
8/15/20124,254,739686,3836.198783
7/31/20124,456,0861,561,2312.854213

My analysis

There has been a lot of insider selling in J.B. Hunt Transport Services this year. The stock is trading at a forward P/E of 21.98. I would buy a small speculative position because the stock is bullish and the recent "upgrade" recommendation will help overcome the $61.18 (52 weeks highest).

3. Kohl's Corporation (NYSE:KSS) operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. As of August 9, 2012, it operated 1,134 stores in 49 states. The company also provides on-line shopping through its Website Kohls.com. Kohl's Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.

(click to enlarge)

- The MACD marks a change of upward trend. The stock is in a bullish channel. RSI is in a good position.

New Rating

Deutsche Bank upgraded Kohl's from Hold to Buy with a price target of $62.00.

Analyst of Deutsche Bank, said:

We are upgrading shares of KSS to Buy as: (1) improving SSS trends, (2) easy compares, (3) use of its b-sheet to support EPS, & (4) cheap valuation make the stock attractive. While it's fair that the KSS story is not bulletproof, at only 10.0x, we're prepared to absorb the risk and point to our upgrade of Target (NYSE: TGT) in Feb. as a similar set-up.

Consensus Recommendation

(SOURCE)

Financials

The company reported the second-quarter financial results on August 30 with the following highlights:

Revenue$4.20 Billion
Net Income$240 Million
Cash$600 Million

Short Interest

Settlement DateShort InterestAvg Daily Share VolumeDays To Cover
8/15/201216,887,8223,658,7024.615796
7/31/201219,956,1802,846,3097.011249
7/13/201221,252,5284,008,266

5.302175

My analysis

Short interest has decreased in a month. The stock is trading at a forward P/E of 12.71. There have been six insider selling transactions this year. The MACD marks an upward trend and for this reason, I would purchase shares with a target price of $56.66 (52 weeks highest).

*Chart data sourced from stockcharts, all other data sourced from Nasdaq.com and yahoo.com as well as the webs of the previously mentioned companies.

Source: Top 3 Stock Upgrades On September 12

Additional disclosure: Investors buy and/or sell at their own risk. I declare that I may day-trade any stock at any time mentioned in this article. For me "long" is until I sell and few tell you that. I do not "short" stocks and few tell you that too. I also get paid one penny per view from SA and other than being published by SA and my own private stock account, I have zero connection to Wall Street and few tell you that too.