that a stock with good business prospects tends to be a bit expensive once its PEG hovers near 2, so we aimed considerably lower than that mark. Finally, we targeted companies with long-term average annual earnings growth rates of 8% or more.
Our screen of value stocks took a different slant. We angled for stocks with substantial dividend yield. Dividends provide a way to harvest income from shares whether a company’s stock appreciates in value or not. It’s a potential cushion if the economy continues to stall.
The stocks and mutual funds we targeted have the potential for significant gains over the next 12 months. Remember to diversify your holdings, and, hopefully, 2004 will bring you many happy returns.
Why You Should Pick These Stocks
| Commerce BCP-NJ (NYSE: CBH) | With a long-term record of lifting profits, the Mid-Atlantic bank has used expansion into the New York area to boost deposit and earnings growth. | ||||||
| Convergys (NYSE: CVG) | A leading provider of billing services for the mobile phone industry, Convergys is looking toward revenue growth in the coming year. | ||||||
| Goldman Sachs (NYSE: GS) | A stock market rebound could provide a strong lift to one of Wall Street’s leading brokerage firms. | ||||||
| JetBlue (NASDAQ: JBLU) | Rapidly expanding JetBlue is turning profits in a dragging industry. Market share gains | ||||||
| and new routes should keep profits soaring. | |||||||
| Lowe’s Cos. (NYSE: LOW) | Home improvement supplies retailer Lowe’s is giving Home Depot strong competition by pushing into the nation’s major markets. | ||||||
| Brunswick Corp. (NYSE: BC) | A boating equipment and engine maker, Brunswick stands to benefit from a surge in consumer spending if the economy picks up. | ||||||
| Public Service Enterprise Group Inc. (NYSE: PEG) | A steady New Jersey utility, PSE&G boasts a 5% increase, despite a payout that’s below industry peers. | ||||||
| Sara Lee (NYSE: SLE) | A maker of baked goods and a variety of consumer products, Sara Lee is inexpensive and sure to generate strong cash flow. | ||||||
| J. M. Smucker (NYSE: SJM) | Smucker hopes the addition of Jif and Crisco to its roster of brands will widen margins and boost profits. | ||||||
| RJR Reynolds (NYSE: RJR) | Far from a popular pick, the maker of Camel, Winston, and Salem sports a whopping dividend yield at a time courts might ease up a bit on big tobacco. | ||||||
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Stocks To Jump On Now And Beat The Crowd |
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| Company (Ticker) | Industry- Sector | Market Cap. (Millions) |
Recent Price | Price Change YTD |
52 Wk. High | 52 Wk. Low | Long- Term Growth |
PEG | Avg. EPS Surprise* |
Div. Yield |
| GROWTH | ||||||||||
| Commerce BCP-NJ (NYSE: CBH) | Regional Bank | $3,036 | $43.25 | 0.00% | $47.23 | $36.37 | 19% | 0.92 | 2.50% | 1.5% |
| Convergys (NYSE: CVG) | Data Processing- Outsourcing | 2,584 | 18.10 | 19.00 | 19.15 | 11.35 | 13 | 1.60 | 1.75 | 0.0 |
| Goldman Sachs (NYSE: GS) | Investment Banking | 43,011 |
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