"Coke (KO, NYSE, around $61) is the world's best-known product," says Standard & Poor's The Outlook of New York.
Earnings should increase 20 percent to $2.45 a share for the full year. We look for earnings of $2.90 a share in 1992. Although the shares are trading at a lofty 25 times projected 1991 net, the premium price-to-earnings multiple is justified . . . We feel the issue is well situated to turn in an above-average performance over the next 12 months."
"A&W Brands' position as a non-cola producer of soft drinks differentiates the company (SODA, OTC, around $35) within the industry and insulates it against periodic 'cola wars,' " says United & Babson Investment Report of Wellesley Hills, Mass.
"Thanks to an excellent bottler distribution network and skillful marketing, the company's brands have made A&W the fastest growing soft-drink company in the industry since going public in 1987. Buy for speculative growth.
"Gatorade is going global. The drink is the racehorse in Quaker Oats (OAT, NYSE, around $60) stable of brands; the product continues to expand at a double-digit rate," says Roger Spencer of PaineWebber.
"The company remains a leader in other product lines including hot cereal and pet food. We look for double-digit growth for the current fiscal year, with earnings rising 12.7 percent to $3.10 per share. We look for a similar advance to $3.50 a share next year. The stock is an attractive buy."
"Miami-based Catalina Lighting (LTG, AMEX, around $3) is a distributor of high quality residential and office-lighting fixtures," says R. Jerry Falkner & Co. of Fort Lauderdale.
"The firm appears well-positioned to enjoy a sharp rebound as the economy recovers during fiscal 1992. We believe earnings can reach an annualized rate of 50 cents a share or better within 12-18 months. Investors should note that the stock sells for less than 85 percent of book value and 5.5 times our estimate of normalized earnings." HC