Five Winning Stocks

To grow the company, Precision Castparts has completed nearly 35 acquisitions since 1985. Over the last year, the company acquired GSC Foundries, McWilliams Forge and Cherry Aerospace. These acquisitions, which should be accretive to the company's 2007 earnings, expand its casting, forging and fastener product offerings. Also, Precision announced acquisitions during 2006 totaling roughly $700 million.

The company's fundamentals remain strong. PCP has been generating strong cash flow from its operating activities (more than doubled from $212.90 million to $466.80 million in the first nine months of FY06), which has been more than sufficient to fund its capital expenditures.

The stock's 12-month total return exceeded 68% as of April 12. Expect the company to release earnings on May 10.

• Florida Power and Light (FPL Quote) (Utilities)

We have maintained a buy rating on Florida Power and Light for the last two years. Over that period, the stock has gained 50%. FPL's future growth is expected to be driven by new investments in power plants and a growing customer base. This is the premier stock play in the growing Florida consumer and business market.

FPL estimates that its electricity generating capacity should exceed 22,000 megawatts, a 6% rise over the end of 2005. Revenue from industrial customers comprise only 3% of the total customer mix, vs. 19% for the average U.S. utility. This higher generating capacity and lower industrial ratio translate into less exposure to economic cyclicality and higher earnings stability.