he adds.
If there is any growth potential among his list, Eley thinks it’s in Philip Morris (NYSE: MO). The portfolio manager says the market has long factored tobacco litigation issues into the company’s stock price. Philip Morris, however, has a generous 4.2% yield and could well generate strong earnings growth in the years ahead. “In a defensive portfolio, it’s my one pick with the greatest offensive potential,” he says.
|
Randall R. Eley’s Private Screening Picks |
|||||
|
Company |
Price* |
12 to 18-month |
P/E on Projected |
Est.5-Yr. |
Why Stock Will Outperform |
| ChevronTexaco NYSE: CVX |
$87.65 | $107 | 20.3 | 8.3% | While oil is a steady business, the company’s 3.1% yield will provide income. |
| ExxonMobil NYSE: XOM |
42.91 | 47 | 23.1 | 7.5 | Another play on oil’s strength, also providing a solid divident. |
| Dow Chemical NYSE: DOW |
32.39 | 50 | 24.9 | 10.0 | Now that Dow’s Union Carbide merger has turned the corner, expect earnings upside. |
| General Motors NYSE: GM |
60.71 | 71 | 20.0 | 5.3 | Despite a drop-off in auto sales, GM’s 2002 profits could pleasantly surprise Wall Street. |
| Philip Morris Companies NYSE: MO |
52.67 | 73 | 11.6 | 11.0 | Tobacco litigation aside, its shares are cheap, given growth prospects for its other businesses. |
*As of March 8, 2002
Sources: Randall R. Eley, The Edgar Lomax Co.; Morningstar INC.; Zacks Investment Research
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