growth from 2003 to 2004, causing its net income to grow from $57.4 million to $100.2 million. “This company’s growth reflects higher income not only from existing customers but from new clients,” Small observes. “By providing on-site technical account management teams to implement solutions and fix problems, they have a value-added component to their business that helps them stay competitive.”
ERIC SMALL’S Stock Picks
| Company Exchange: Symbol | Price* | 12- to 18- Month Price Target | P/E on Projected 2005 Earnings | Est. 5-Yr. Annual EPS Growth Rate | Why Stock Will Outperform |
| Aetna Inc. (NYSE: AET) | $153.93 | $195.00 | 17.00 | 15.00% | There will be greater demand for Aetna’s services as America’s elderly population increases. |
| Valero Energy Corp. (NYSE: VLO) | $72.80 | $90.00 | 13.50 | 7.10% | Valero is poised to benefit because the demand for fuel-refining services surpasses the supply. |
| Coach Inc. (NYSE:COH) | $59.42 | $75.00 | 28.00 | 20.00% | Coach will benefit from increased consumer spending as the economy recovers. |
| Cognizant Technology Solutions Corp. (NASDAQ: CTSH) | $48.20 | $65.00 | 37.10 | 33.00% | Cognizant’s on-site technical account management teams help it stay competitive. |
| Apple Computer Inc. (NASDAQ: AAPL) | $42.35 | $65.00 | 41.00 | 21.50% | Sales of products such as the iPod will continue to increase Apple’s revenues. |
| AS OF MARCH 7, 2005 | |||||
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