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Get Four
|  | SEPTEMBER 27, 2004
 S&P TOP TEN PORTFOLIO By Ken Shea and Robert Gold Anheuser Rolls Out of S&P Top 10 Industrial outfit Ingersoll-Rand replaces the brewer in the list of S&P's best investment ideas On Sept. 27, Standard & Poor's Equity Research Group made changes to the S&P Top 10 portfolio -- those issues it considers to be the best candidates for capital gains over the next 6 to 12 months. We added industrial concern Ingersoll-Rand (IR ; recent price: $64), which will replace brewer Anheuser-Busch (BUD ; $50). Anheuser was removed fom the portfolio after S&P's investment recommendation on the stock was downgraded to 4 STARS (accumulate) from 5 STARS (buy) on Sept. 27. Like all the stocks in the Top 10 portfolio, Ingersoll carries S&P's highest investment ranking of 5 STARS. S&P's continued enthusiasm for Ingersoll reflects our view of the company's combination of new product introductions, continued strong growth in the security and safety business, and solid demand from construction equipment and truck markets. We also like what we consider the stock's compelling valuation. Our 12-month target price for Ingersoll is $93, which implies the shares' commanding a p-e multiple of 17 based on our 2005 earnings per share estimate of $5.50. Year-to-date through Aug. 31, 2004, the Top 10 gained 4.1% vs. a gain of 0.4% for the S&P 500 index on a total return basis. Here's the latest list:
For more information about the Top 10 portfolio, please visit http://www.businessweek.com/investor/content/jun2002/pi20020617_8998.htm  Shea is director of global equity research, and Gold is a senior portfolio group analyst, for Standard & Poor's Equity Research All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
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