TheStreet.com Ratings: Three Dow 30 Favorites for 2007

Management also recently upped growth and profit guidance. American Express shares have gained 16.4% in the year to date and hit a new high last week of $60. The company expects to report year-end earnings on Jan. 23, 2007.

DuPont is the largest U.S. chemical company, with a diversified range of product lines. It makes the favorite list for its well-above-average 24% return on equity, 12% earnings estimated growth for next year and a 3% dividend yield -- all for a stock that only trades at 15 times projected earnings.

Product innovations create new markets and earnings opportunities. DuPont has a very strong research-and-development pipeline and expects to generate more than a third of 2006 revenue, $9 billion, from products introduced in the past five years. Among the many interesting new introductions and applications are corn-derived propanediol products that can be used as an ingredient in carpet cleaners, antifreeze and detergents.

On Monday the company's agricultural and nutrition unit said it would close or streamline manufacturing units and cut 1,500 jobs globally as it shifts from low-growth nutrition and crop protection businesses, reinvesting the annual $100 million in savings it expects from the restructuring into higher-growth opportunities in its corn seed breeding business. It expects to book a $200 million charge for the restructuring in the fourth quarter of this year.

Other showcase products include biofuels, photovoltaics, and advanced filtration aimed at high-growth, high-margin commercial markets.

DuPont is also well positioned to benefit from global growth. Revenues from outside the countries with the seven biggest economies have grown at an average rate of 17% over the last five years and now total 36% of total revenues.

Dupont shares have returned 15% in the year to date. The company expects to report year-end earnings on January 23, 2007.

So if you are thinking of the Dow 30 stocks as stodgy, Old Economy companies, think again.

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