Since Precision depends on the aerospace industry for its top-line growth, any slowdown in that industry could lead to reduced demand for its products. Any fluctuations in the prices of basic materials or any unseen difficulty in integrating recent acquisitions could also be concerns.
Hotelier Marriott(MAR Quote) has earned a buy rating since March 2005. The company's strengths include solid stock price performance, increased net operating cash flow and a low debt-to-equity ratio. These strengths outweigh the company's subpar net income growth.
Rated a buy since May 2005, Baxter International(BAX Quote) develops, manufactures and distributes products and services used mainly by the health care industry. The company has shown strong revenue growth (particularly in its bioscience product line), strong bottom-line growth with improved profit margins, and a promising outlook for EPS growth going forward. Risks to the buy rating include any delays in the regulatory approval process, ambivalent market acceptance of its products, or pricing pressure from generic competitors.
Telephone titan AT&T(T Quote) has rung up a buy rating since March 2006. This is based on a number of positive investment measures, including robust revenue growth, net income growth and good cash flow from operations. The company's growth has been driven by acquisitions. The completion of the BellSouth acquisition will generate higher cash flow, and AT&T expects its wireless segment, which now includes all Cingular and BellSouth businesses, to deliver double-digit earnings growth in 2007.
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