Consumers Mean Profits

Vivian D. Hairston says consumer staples provide solid growth under various economic conditions

Hairston thinks Lowes will give its chief rival, The Home Depot, a run for its money because it plans “to continue to expand its operations into metropolitan areas where we think it will gain greater market share and increase profits. This year, they’re planning to offer more installation products like cabinets, carpets, and the like. And they are developing strategic supplier relationships with professionals like carpenters and plumbers.”

VIVIAN D. HAIRSTON’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
PepsiCo Inc. (NYSE: PEP) $53.49 $60.00 21 11% Pepsi’s new health-conscious products should drive earnings.
Procter & Gamble Co. (NYSE: PG) $55.99 $60.00 22 10% P&G’s expansion into emerging markets will likely increase sales.
Walgreen Co. (NYSE: WAG) $43.16 $46.00 26 16% Walgreen’s consumer prescription drug services should increase company market share. Company also has no long-term debt.
Lowes Cos. Inc. (NYSE: LOW) $57.44 $63.00 21 17% More store openings in metropolitan areas should boost Lowes’ profits.
Source: vivian hairston, unizan financial services group* As of Jan. 18, 2005
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