Aetna"I'm adding one of America's finest companies, Aetna...


June 26, 1991|By Opinions on stocks offered by investment experts. Compiled by Steve Halpern for Knight Ridder.


"I'm adding one of America's finest companies, Aetna Life & Casualty (AET, NYSE, around $41) to our buy list," says Bill Staton's Money Advisory of Charlotte, N.C.

"I've waited a long time to recommend purchase of Aetna, and I now think the time is ripe.The stock price is a scant 64 percent of book value, which makes Aetna a real bargain. As earnings begin their upswing, Aetna will likely raise the dividend, which in turn should send the stock at least into the high 50s over the next 12-18 months. Buy up to 45."


"Anheuser-Busch (BUD, NYSE, around $50), the nation's largest brewer, is our latest featured stock of the month," says Ruta Financial Services Newsletter of Bronxville, N.Y.

"Beer consumption continues to slip. Nevertheless, the firm -- with its Clydesdale-like strength -- keeps growing. Earnings rose to record levels in the latest quarter and we look for a 10 percent gain in profits for the full year. investors should use any weakness in the stock to accumulate these shares. Any price drops should be viewed as a buying opportunity."

H&R Block

"H&R Block (HRB, NYSE, around $55), the largest income tax return preparer in both the U.S. and Canada has recorded a steady rise in earnings for nearly two decades," explains Standard & Poor's The Outlook.

"The firm's electronic filing service, Rapid Refund, has enabled the company to broaden the number of taxpayers served. Prospects are enhanced by the recession-proof nature of the tax preparation business.

"The stock has appeal for superior appreciation and rising dividends in the years ahead."


"Sears (S, NYSE, around $40) is likely to earn $4 a share in 1991 and $4.82 in 1992," says Alan Benasuli, director of research for Smith Barney.

"The stock is selling at 8 times our 1992 forecast, a 46 percent discount to the overall market.

"Basically, investors are getting the firm's traditional merchandising group almost for free. The economic recovery should help that part of the business next year. We believe the stock should be selling at 10 to 11 times earnings. Our price target is $45 to $50 over the next year."

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