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

Management was pleased with what it considered to be a great start to fiscal 2009, as sales and profit results for the first quarter exceeded management's expectations. General Mills increased its earnings guidance for fiscal 2009 to a range of $3.81 to $3.85 per share, up from its previously released forecast of $3.78 to $3.83 per share. The company also expects fiscal 2009 net sales to grow at a mid single-digit rate. Although the company's growth in net income has been sub par, we feel that its strengths outweigh any weaknesses it may display. Even the best stocks can fall in an overall down market, but in any other environment, we believe that this stock still has good upside potential despite the fact that it has already risen in the past year.

Baxter International (BAX Quote) is a medical-products and services company that manufactures products in 28 countries and sells them in over 100 countries, with more than 50% of its revenue generated outside the United States.

Baxter has been rated a buy since May 2005, based on such positive investment measures as earnings per share growth, revenue growth, solid stock price performance and notable return on equity. For the second quarter of fiscal 2008, the company reported revenue growth of 12.7% year-over-year. While this growth was less than the industry average of 14.3%, Baxter's revenue growth appears to have helped boost earnings per share, which improved 30.8% when compared with the same quarter of fiscal 2007.

The company has demonstrated a pattern of positive earnings per share growth over the past two years, and we feel that this trend is likely to continue. Net income rose from $4.31 billion in the second quarter of fiscal 2007 to $5.44 billion in the most recent quarter, an increase of 26%. In addition, Baxter's return on equity improved slightly from 24.53% to 24.57%. The company credited continued gross margin expansion due to enhanced business, product and geographic mix for its second-quarter results.