Warner-LambertDow Theory Forecasts of Hammond, Ind...


September 26, 1990|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder


Dow Theory Forecasts of Hammond, Ind. recommends recession-resistant blue chip Warner-Lambert (WLA, NYSE, high $50s).

"The firm has topnotch finances. Earnings, led by lipid-regulator Lopid and anti-convulsant Dilantin, should increase at a 15-20 percent clip. In addition, the firm has several new drugs on the way, including Cognex (for Alzheimer's) and Accupril (a cardiovascular treatment). Novon, a starch-based biodegradable plastic, has placed the firm in a potentially lucrative new market."

Sara Lee

Bear Stearns' June Page sees a growth decade ahead for Sara Lee (SLE, NYSE, mid $20s), which also owns the Jimmy Dean and Hillshire Farm lines as well as Hanes products.

"Currently, 38 percent of income is from overseas operations. The unification of Western Europe in 1992, in addition to the opening of Eastern European markets, offers new business opportunities. Further, the company has $250 million in sales in Southeast Asia . . . We expect the firm to sustain 14 percent earnings growth over the next five years . . . Buy."

Crystal Brands

"Crystal Brands (CBR, NYSE, around $19) has our highest investment rating," says the Zweig PerFormance Ratings Report in Bellmore, N.Y.

"The company is a maker of high-quality apparel, with brand names such as Evan-Picone, Izod Lacoste, and Gant. For the most recent 12-month period, the firm earned $3.11 a share versus $2.08 in the year-earlier period . . . Growth is expected to continue. Meanwhile, the common stock is attractively priced, with a price-earnings multiple of only 6.4."

Stride Rite

"Stride Rite (SRR, NYSE, low $20s) has the potential to outperform the market," says Sy Harding's Investor Forecasts of Palm Coast, Fla.

"The company's Keds fabric-based sneakers are on a fast growth track, with sales for the most recent quarter up 23 percent. Growth is expected to continue as consumers . . . buy Keds as an alternative to the expensive leather sneakers. The company is exceptionally well run. Long-term debt is negligible. The stock price has pulled back sharply, providing an excellent buying opportunity."

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