Today begins with real estate and money management service company Jones Lang LaSalle ( JLL - Get Report), which has had a buy rating since March 2005. The company shows impressive strengths, including a noteworthy return on equity (a sign of internal strength), impressive net operating cash flow, and a pattern of earnings-per-share growth reflected in the impressive appreciation of its share price. With positive investment measures across the board, the company's low profit margins are not a major concern.
Oil and gas transportation company Plains All American Pipeline ( PAA) has had a buy rating since March 2005. The company shows impressive strengths, including positive stock price appreciation and a largely solid financial position with reasonable debt levels by most measures. These strengths outweigh the company's subpar net income growth.
Rated a buy since March 2005, Credicorp ( BAP - Get Report) owns and operates several prominent banks in South America. The company's strengths are seen in its notable return on equity, EPS growth and compelling net income growth. Though the company may have a few minor weaknesses, we believe they are unlikely to have a significant impact on results.
Carpenter Technology ( CRS), a manufacturer of specialty metals and engineered products, has been rated a buy rating since March 2005. The company shows a convergence of positive investment measures, including a notable return on equity, reasonable debt levels by most measures, compelling growth in net income and impressive EPS growth. The company's low profit margins are unlikely to threaten its buy rating at this point.
Cameron International ( CAM) makes oil and gas pressure-control equipment, and has garnered a buy rating since February 2005. The company showed stellar revenue growth in 2006, mainly due to strong demand for its products from increased drilling activities in the booming oil and gas industries. Cameron also showed a record order backlog for the year. When combined with its pricing power, this should maintain its top-line growth and continue to improve earnings. The company is not without risk. With steadily rising oil prices during the last two years, any decline in demand or increasing use of alternative fuels could threaten future earnings. Cameron might also be unable to fulfill its backlog, which would not only drag down profitability, but also sour customer relationships and goodwill.
Terex ( TEX - Get Report), rated a buy since May 2006, makes equipment used for construction, mining, shipping, transportation and numerous other industries. The company has shown impressive revenue growth, a pattern of solid EPS growth, compelling net income growth, and outstanding stock price appreciation. These strengths outweigh the company's low profit margins.
Rated a buy since August 2005, Commscope ( CTV) designs, manufactures and markets various types of cable used in Internet, telephone and wireless communications. Among the company's strengths are robust revenue growth, outstanding EPS growth and impressive net operating cash flow improvements. These strengths outweigh Commscope's low profit margins.
CNA Surety provides a wide selection of surety products. The company has been rated buy since March 2005. Its strengths include a very low debt-to-equity ratio, a pattern of EPS growth over the past two years and impressive return on equity. These strengths outweigh the company's low profit margins.
Insurance holding company Harleysville Group has been rated a buy since March 2005. Its strengths include a very low debt-to-equity ratio, an impressive record of EPS growth and solid stock price performance. These strengths outweigh the company's low profit margins.
Industrial and consumer packaging products maker Sonoco Products ( SON) has merited a buy rating since March 2005. The company has a wide range of positives, including a low debt-to-equity ratio, solid EPS growth, improved return on equity and solid stock price performance. These strengths outweigh the company's low profit margins.