Pru's shares seem like a bargain at 75. And they have upside of 40%, on strength of the company's big -- and growing -- return on equity and leading role in private-placement investing.

The average forecast of nine strategists surveyed by Barron's foresees the S&P 500 ending 2008 at 1363, a mere 5% higher than Thursday's close of 1301.

Like many restaurants, Ruby is caught between pricier ingredients and thriftier diners. Its debt load and debt servicing don't leave much room for stock buybacks or dividends. But at about 7, shares trade at 0.27 times projected 2008 sales. Left for dead by analysts, its price-to-book multiple of 0.9 is well below the peer average of 5.4. Full-service, sit-down restaurants are in a tough spot, but Ruby has been pushing value offerings (like a three-course dinner for two for $15.99) to nudge the average check up from about $11 or $12. Meanwhile, industry over-capacity is being remedied by rapid restaurant demises. The 20 largest casual-dining chains have increased locations some 45% over five years, far outpacing demand. But bankruptcy filings -- by Bennigan's and Steak and Ale chains last month -- will see business redistributed among peers like Ruby, Darden Restaurants (DRI) and Brinker International (EAT). In fact, Morgan Stanley reckons this may be the first year since 2004 when casual dining sales growth could overtake unit growth. And harried dual-income families will still need a place to eat -- and to drink -- in tougher times.

AMR, for example, is sensitive to crude oil spikes, given the lack of fuel hedges. Citi expects fuel costs for the American Airlines parent to decline by $630 million in the second half, with 2008 per-share loss trimmed to $6.17 from street estimates above $7. But at $10.50, shares are still expensive, and the ratio of AMR's enterprise value to sales exceeds those for European carriers with sturdier balance sheets. A further oil slide will help, but the steepest oil slide may already be behind. Meanwhile, the Air Transport Association expects U.S. airlines to carry 6.5% fewer passengers this Labor Day weekend compared to last year. And despite having 1.2% fewer seats available in July compared with a year ago, American Airlines saw passenger traffic fall 3.5%, while UAL's United Airlines saw a 4% slide in traffic as capacity shrank 1.4%.

One such stock, EnCana (ECA) -- one of the largest producers of natural gas in North America -- should be able to sustain average annual earnings growth of 30% a year over five years, Hallett believes. The stock, which trades at around 75, could reach 89 over the next 18 months, he says.

Consider as a case study Procter & Gamble (PG), up some 16% since late June. Jefferies & Co.'s derivatives strategists like hedging with puts, or put spreads, through year's end as 54% of Procter & Gamble's sales are from wobbly international markets. Option volatilities are below recent highs despite the stock's strength. If shares fall, puts will increase in value to offset the loss. Jefferies' advice is a reminder that investors must think globally and act locally.

Logitech (LOGI) was a hot stock up until the end of last year, rising from 10 to 37 in three years. But since then the share price has fallen to 27, despite continuing strong double-digit growth in sales and operating profits. The Street may be wrong. Given the Swiss-based company's strong margins and record of innovation, the stock's potential may be anything but mousy.

Lawson reported nearly a 25% increase in license revenue -- a key software yardstick -- for its fiscal year ended in May. Lawson, whose $1.4 billion market capitalization pales in comparison with SAP 's (SAP) nearly $70.4 billion, generates about 70% of its roughly $900 million in annual sales from customers with revenues ranging from $300 million to $1 billion. The Minnesota-based outfit concentrates on five specific customer segments: health care, food and beverage, fashion, government and heavy-equipment dealers. By focusing on medium-sized companies in those five vertical markets, Lawson can outhustle its bigger competitors, Schriesheim says. Cowen software analyst Peter Goldmacher, who has an Outperform rating on the stock, projects about 14% growth in license revenue this fiscal year -- solid in a sour economy.