To: Wigglesworth who wrote (27195 ) 1/22/1999 7:16:00 PM From: Mang Cheng Respond to of 45548
WW, just to give you a clue and try not to wreck your brain, coms is one of the nine top-ranked stocks as ranked by S&P : Friday January 22, 1999 (1:16 pm ET) Stepping It Up: Strong Productivity Drives Growth for Nine Top-Ranked Stocks These companies' high productivity per worker signals healthy growth in margins, profits By Arnold Kaufman, Editor, S&P's The Outlook NEW YORK, Jan. 22 (Standard & Poor's) - Top-line growth remains difficult to achieve for most corporations. Revenue gains are hard to generate because of the increasingly competitive global business environment and limited product pricing power. Companies able to boost revenues at a healthy clip obviously stand a better chance of raising per-share earnings, and thus should attract investor attention. With labor costs continuing to inch upward, moreover, the market should place a premium on the shares of companies enjoying high productivity per worker. A business that is increasing its revenues per employee is probably widening its profit margins and lifting its earnings at a good pace. We searched our database first for companies with five-year sales growth rates of 15% or more, compared with 6% for the S&P Industrials index. Often, acquisitions contributed to these gains. We then looked for companies whose five-year earnings growth rates exceeded their five-year sales growth rates, implying a widening of profits margins. Next, we screened for companies whose sales per employee topped $400,000. Finally, we filtered for stocks with S&P STARS rankings of (accumulate) or (buy), indicating an S&P analyst expects above-average performance in the next 12 months. The following nine stocks emerged: Company STARS Ranking AirTouch Communications (ATI) Altera Corp (ALTR) Amgen Inc (AMGN) Biogen Inc (BGEN) Centocor Inc (CNTO) Dell Computer Corp (DELL) Jabil Circuit (JBL) Sun Microsystems (SUNW) 3Com Corp (COMS) 4 stars personalwealth.com Mang