Last Year's Experience...
We selected S&P 500 companies using various criteria, and came up with these
12-month total returns for each group
SELECTION CRITERION RETURN*
COMPANIES WHOSE
PROFIT MARGINS GREW 36.2%
COMPANIES IN TOP QUINTILE,
RETURN ON INVESTED CAPITAL 37.4
COMPANIES WITH BUSINESS WEEK
INDUSTRY RANK OF 1 OR 2 40.5
BUSINESS WEEK 50 AVERAGE 44.5*
S&P 500 AVERAGE 31.3
...Suggests Some Stocks to Consider Now
In this year's rankings, these companies fit all three of the criteria--wider
profit margins, top quintile return on invested capital, and BW industry rank
of 1 or 2
COMPANY PERFORMANCE RANK COMPANY PERFORMANCE RANK
APPLIED MATERIALS 13 PFIZER 12
AVERY DENNISON 193 SCHLUMBERGER 18
CAMPBELL SOUP 131 TELLABS 7
DELL COMPUTER 2 TJX 21
GILLETTE 38 UNITED TECHNOLOGIES 151
HERSHEY FOODS 98 US AIRWAYS GROUP 14
INTEL 4 USX-U.S. STEEL GROUP 225
MICROSOFT 1
*Minus stocks removed during the year
DATA: STANDARD & POOR'S COMPUSTAT, A DIVISION OF THE McGRAW-HILL COMPANIES
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