Fred's has trailed its dollar-store competitors on numerous metrics, including stock-price gains. That could change under a new CEO, and the shares could head toward 20 from 12.

Shares of Allegiant peaked at 57 in April and have fallen to 42 as insiders sell. One bear says weaker earnings ahead could bring the stock price down to 24.

But even before the midweek buying jag, Canaccord Adams' director of research, Eric Ross, had recommended Citi as a play on the stabilizing housing market and the economic rebound. On the basis of its book value, a traditional valuation metric that lost sway in the accounting confusion of the financial crisis, Citi is the least expensive mega-bank; it began the month trading near 0.22 times its book value, compared with 0.65 times for Bank of America (BAC), par for JPMorgan and 1.36 times for Wells Fargo (WFC). Barron's recommended the stock two weeks ago ("The Beauty of Banking's Big Ugly," July 27). "Either the disparate valuation gap between Citi and its competitors narrows, or Citi simply fades away" -- an event that, were it to occur, ought to throw off advance cues, Ross argues. Citi's bad assets still make it a risky bet, despite today's benevolent net interest spread and even as the bank returns to its core focus on global banking, but the stock recently ticked above its 50-day moving average. "If the market unexpectedly gets hammered, Citi is probably in a better position than most as it is closer to its support," Ross writes. "And if the market continues to move up, we'll likely see Citi move up faster." He sees technical resistance near 4.50 that, if surmounted, could send shares toward 6.50, or 0.45 times book value.

New Yorkers with exacting standards when it comes to pizza turn up our noses at the few forlorn California Pizza Kitchens (CPKI) that dare venture into Manhattan, but that's not why we shun the stock. Thanks to aggressive cost cuts and weak corn and wheat prices -- following the second-biggest grain harvest since World War II -- the chain last month told investors to expect better second-quarter results. That it duly delivered last week, but investors eyeing a second-half rebound in restaurant sales may be disappointed. The stock also has rallied more than 150% since last November, six times better than the sector. At 17.3 times projected 2010 earnings, compared with 12.9 times for McDonald's (MCD) and 13.9 times for its peers, the stock is already counting its 2010 gains.

New Yorkers have equally exacting standards when it comes to bagels, but Einstein Noah 's (BAGL) valuation makes the bagel chain easier to swallow. Even after Friday's post-earnings pop, its overlooked shares fetch just 8.4 times projected 2010 profits. It is expanding units at a 7% rate, compared with 4% for its peers. The breakfast-and-snack specialist "fills out the white space between Panera Bread 's [PNRA] egg souffle (near same quality) and McDonald's Egg McMuffin (near same speed)," says Cowen analyst Paul Westra, who sees strong annual free cash flow of more than $1 a share.

But "investors are not long, earnings are being revised up, inflation is likely to come in lower than expected, VIX and credit spreads are back to pre-Lehman levels and valuations are broadly neutral," says Credit Suisse strategist Andrew Garthwaite. "Our year-end target on the S&P 500 is 1050 -- and we would not be surprised to see 1100." To that end, he recommends a barbell strategy emphasizing some economically sensitive bets, as well as cheap defensive stocks. His roster of economically sensitive ideas include U.S. banks like US Bancorp (USB) and JPMorgan Chase (JPM), since housing is bottoming and "leverage is half that of European banks"; and advertising plays such as WPP Group (WPPGY), Publicis (PUB.France) and Google (GOOG), since "ad spending is 11% below trend and agencies are most sensitive to a recovery" in manufacturing orders.

But "investors are not long, earnings are being revised up, inflation is likely to come in lower than expected, VIX and credit spreads are back to pre-Lehman levels and valuations are broadly neutral," says Credit Suisse strategist Andrew Garthwaite. "Our year-end target on the S&P 500 is 1050 -- and we would not be surprised to see 1100." To that end, he recommends a barbell strategy emphasizing some economically sensitive bets, as well as cheap defensive stocks. His roster of economically sensitive ideas include U.S. banks like US Bancorp (USB) and JPMorgan Chase (JPM), since housing is bottoming and "leverage is half that of European banks"; and advertising plays such as WPP Group (WPPGY), Publicis (PUB.France) and Google (GOOG), since "ad spending is 11% below trend and agencies are most sensitive to a recovery" in manufacturing orders.

But "investors are not long, earnings are being revised up, inflation is likely to come in lower than expected, VIX and credit spreads are back to pre-Lehman levels and valuations are broadly neutral," says Credit Suisse strategist Andrew Garthwaite. "Our year-end target on the S&P 500 is 1050 -- and we would not be surprised to see 1100." To that end, he recommends a barbell strategy emphasizing some economically sensitive bets, as well as cheap defensive stocks. His roster of economically sensitive ideas include U.S. banks like US Bancorp (USB) and JPMorgan Chase (JPM), since housing is bottoming and "leverage is half that of European banks"; and advertising plays such as WPP Group (WPPGY), Publicis (PUB.France) and Google (GOOG), since "ad spending is 11% below trend and agencies are most sensitive to a recovery" in manufacturing orders.