growth for Humana Inc. (NYSE: HUM), a company that provides coordinated health insurance coverage and related services to the commercial and government markets. “Humana will benefit from current demographic trends, which show Americans getting older and healthcare costs rising.”
Ralph Mitchell’s Stock Picks
| Company (Exchange: Symbol) | Price* | 12- to 18-Month Price Target | P/E on Projected 2006 Earnings | Est. 5-Yr. Annual EPS Growth Rate | Why Stock Will Outperform |
| Toll Brothers Inc. (NYSE: TOL) | $39.91 | $53.00 | 7.18 | 28.17% | The real estate market should continue its upward trend, and Toll Bros. stock is undervalued. |
| Home Depot Inc. (NYSE: HD) | $37.80 | $46.00 | 12.99 | 17.03% | Recent hurricane damage should increase Home Depot sales. |
| Lowe’s Companies Inc. (NYSE: LOW) | $62.83 | $70.00 | 16.37 | 24.19% | Recent hurricane damage should increase Lowe’s sales. |
| Exxon Mobil Corp. (NYSE: XOM) | $59.60 | $72.00 | 10.81 | 14.70% | Continued worldwide demand for oil should increase Exxon’s revenues. |
| Humana Inc. (NYSE: HUM) | $45.56 | $56.00 | 16.95 | 34.75% | The growing number of elderly Americans seeking healthcare coverage should benefit Humana. |
SOURCE: RALPH MITCHELL, CARTHAGE FINANCIAL GROUP
*AS OF OCT. 7, 2005.