Top Five Large-Cap Stocks

08/22/07 - 10:56 AM EDT

TheStreet.com Ratings Staff

Risks to the company's performance include any inability to derive synergies from the acquisition of Mills Welding & Specialty Gases, failure to drive growth from new capacity additions, or unfavorable effects of currency fluctuations.


Investment management firm T. Rowe Price(TROW Quote - Cramer on TROW - Stock Picks) has been rated a buy since July 2005. Assets under management reached a record $379.8 billion at the end of the second quarter 2007, up from $293.70 billion a year earlier.

T. Rowe Price used available cash to repurchase nearly 1.6 million shares during the second quarter, and had 16.64 million common shares remaining under its current repurchase authorization. It has an attractive record of dividend return, having increased its payout every year since becoming a public company in 1986.

Any unexpected downturn in the securities markets and the economy in general, any deterioration in the relative investment performance of its products, or any adverse regulatory developments could pose a risk to the buy rating.


Cummins(CMI Quote - Cramer on CMI - Stock Picks), which designs, manufactures, distributes and repairs diesel and natural gas engines and electric power generation systems, has been rated a buy since August 2005. The company shows steady revenue and EPS growth. Earnings are expected to continue to grow, driven in part by its emissions solutions and turbocharger businesses.

The stock is not without risk. Cummins' performance depends on the economic conditions of various competitive geographical markets, particularly in the automotive, construction and general industrial sectors. Going forward, a decline in margins as well as return on equity could restrain the company's growth.

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