a rough year for farmers, Monsanto (NYSE: MON) and Potash (NYSE: POT) should nonetheless benefit in the near future. Moten sees indications that corn and soybean prices will rise over the next year, prompting farmers to spend more on the fertilizers, herbicides, and seeds these companies make.
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John Moten’s Private Screening Picks |
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| Company Exchange: Symbol |
Price* | 12- to 18-Month Price Target |
P/E on Projected 2002 Earnings |
Est. 5-Yr. Annual EPS Growth Rate |
Why Stock Will Outperform |
| DuPont NYSE: DD |
$40.08 | $57 | 20.9 | 11 | With its core businesses bouncing back, look for earnings per share of $1.85 in 2002, up from 2001′s $1.19. |
| PPG Industries NYSE: PPG |
51.47 | 61 | 16.1 | 9.2 | PPG’s coating and glass products divisions are getting a nice boost from increases in U.S. auto production. |
| Monsanto NYSE: MON |
16.17 | 28 | 12.6 | 9.7 | Trading close to 13 times 2003 projected earnings, Monsanto is one of the cheapest stocks in the group. |
| Potash NYSE: POT |
62.42 | 80 | 50.5 | 16 | As prices for corn and soybeans rise, prices for the company’s fertilizers are bound to improve. |
| *AS OF SEPT. 13, 2002SOURCES: JOHN MOTEN, DEUTSCHE BANK SECURITIES; MORNINGSTAR INC.; YAHOO! FINANCE; ZACKS INVESTMENT RESEARCH |
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