STOCK PICKS: Top 5 Large-Cap for Oct. 8

Revenue growth appears to have helped boost earnings per share, which improved 34.9% when compared with the second quarter of fiscal 2007. Net income increased 33.7%. Abbott's return on equity increased from 12.56% a year ago to 22.05% in the most-recent quarter, which we take to be a clear sign of strength within the company. In addition, net operating cash flow increased by 9.69% over the last year.

Looking ahead, Abbott raised its fiscal 2008 sales growth and EPS guidance based on its first-half results and its outlook for the remainder of the year. Full-year EPS guidance was changed from $3.20 - $3.25 to $3.24 - $3.28, while its sales guidance was increased to mid-teens growth for the full fiscal year. EPS guidance for the third quarter of fiscal 2008 was given as 76 cents to 78 cents per share. We do not currently see any significant weaknesses that are likely to detract from the generally positive outlook for this company, but keep in mind that the pharmaceuticals industry as a whole is vulnerable to patent expirations and legislative threats to pricing power.

General Mills(GIS Quote) is the world's sixth-largest food company, producing packaged consumer foods that are marketed in more than 100 countries.

We have rated General Mills a buy since November 2004. For the first quarter of fiscal 2009, the company reported that it achieved strong results, primarily due to strong consumer demand in worldwide markets. First-quarter revenue rose 13.8% year over year, but this revenue does not appear to have trickled down to the company's bottom line, as General Mills displayed a decline in earnings per share for the quarter. However, we feel that the company is poised for EPS growth in the coming year, despite reporting somewhat volatile earnings recently. Net sales grew 14.0% from $3.07 billion in the first quarter of fiscal 2008 to $3.5 billion in the most recent quarter. Net operating cash flow also increased significantly, rising 1,007.35% when compared with the same quarter last year. In addition, we consider the company's 37.30% gross profit margin to be strong.