CSX(CSX Quote) has been rated a buy since March 2005 and is the owner of one of the largest rail networks in the U.S. It has displayed strong revenue growth, impressive EPS increases and significantly improved net operating cash flow. These strengths outweigh the company's low profit margins.
Insurance and financial services company MetLife(MET Quote) has merited a buy rating since March 2005. With a strong market position and favorable industry trends, the company is positioned for continued strong financial performance. MetLife has bolstered its market position in the core insurance and annuity business with its acquisition of Travelers Insurance Company and the completion of a distribution agreement with Citigroup(C Quote) in 2005, giving it one of the broadest distribution networks in the sector. Possible risks to the buy rating include any sharp fluctuation in equity markets, decline in investment spreads, negative competitive effects on premium rates, adverse regulatory developments or any unexpected catastrophic event.
Rated a buy since October 2005, aerospace and defense contractor Honeywell International(HON Quote) shows a range of positive investment measures. The company has displayed an impressive record of EPS growth, good net operating cash flow and reasonable valuation levels. Honeywell's strengths outweigh its low profit margins.
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