private companies swooshed from peak to trough and back again

private companies swooshed from peak to trough and back again, Leaving dizzied investors with a puny 3.4% get back to show for the ride. The top following through on industry groups were those in recessionresistant businesses, in particular drugs and food. a lot of unique stocks again nudging record highs, Wall Streeters are puzzling that groups hold the most promise now. Economy to come this spring and GNP for the year to thrive 0.3%. Working from a in a similar fashion sanguine forecast, Analysts at Kidder Peabody predict that profits of agents on Standard Poor's 500stock index will inch up 0.6%, with all the current gains in the second half of the year. The big winners in most gets back are cyclical stocks. To zero in on the groups likely to do best in this rebound and determine how well they're likely to do FORTUNE asked Kidder to screen the list of business companies through its dividend discount model. This mathematical filter tests fausses Ray Bans whether a company's stock is overvalued or undervalued by weighing its price against the expected flow of future dividends. To adjust for the possibility that some cyclical businesses respond to prosperity more readily than others the stocks of automakers, as an example, Typically pick up before those of mining concerns the model considers each group's historical relationship to the market. one: A revealing glimpse of the market's best bargains, Shown using the table below. Easton Ragsdale, Chief of Kidder's cell phone number crunchers: 'When stock groups are undervalued according to this model, They are appealing to buy because they should outperform the market over the next six to 12 months.' The Kidder model shows that most consumer cyclical stocks, Such as autos and building options, Sell at no coupon code. Overpriced are the star performers in last year's derby, Recessionresistant stocks such as smoking and food. Ray Ban pas cher Stefan h. Abrams, Kidder's chief share strategist, Says the premium on such stocks points too investors remain skeptical of an early and strong economic recovery and are clinging to shares they see as safe. He thinks these are missing some bets., The most underrated group in the FORTUNE 500 is metals. Kidder analyst Robert Hageman proposes Aluminum Co. Of america, Reynolds alloys, And Phelps Dodge all companies that cut costs in a hostile manner in the 1980s. But he cautions that the stocks might not rise until consumers start snapping up new cars and gizmo's, helping the demand for raw materials. 'It'll take maybe 24 months for these supplies to pan out,' according to him. The shares of metal products companies could ascend much more speedily. Analyst Daniel Carasso of Goldman Sachs thinks investors should buy Danaher, A maker of exercises, tests, And contrary tools. The stock sold a few weeks ago for $20, Eight times Carasso's analyze for 1992 earnings per share. Masco, Which produces faucets and other fixtures for kitchens and lavatories, can also be a of his favorites. Carasso calls it a 'play on a turnaround throughout the market, especially in the homebuilding industry. Masco can have $2.60 next year, And the stock goes for only $23.' prescription drug companies have had a dazzling 12 months, pouncing 41.1% in pace. Yet Kidder's model shows the stocks are still slightly undervalued. Timothy Morris, Who deals with $3.1 billion for Chemical Bank's portfolio Group, Says he is getting this done his Johnson Johnson and BristolMyers Squibb. Analysts also believe that some scientific and picture taking equipment stocks remain appealing, however the group is close to fully valued. A get noticed: Medtronic, Which brings about pacemakers. It has appreciated more than 80% in the past 12 months, Yet nonetheless on buy lists, consisting of that of Jeffrey Swarz of Goldman Sachs. Ruth Alon of Kidder recommends Bausch Lomb, helping to make rayban sunglasses. 'The market is suspicious of Bausch Lomb because sales of sunglasses and other products depend on consumer spending,' she says, 'but authority has cut costs and says it can produce 15% earnings growth. They always post.' The stock a while ago sold for $83, Or 16 times her estimate for 1991 earnings. KIDDER EXPECTS boards in two other groups: Mining and crudeoil end production, And industrial and farm equipment. Both caved in on investors during the past 12 months, Losing 14% of their own value. The mining group includes at least one genuine feature: Newmont mining, 90% owner of the largest producer of gold in north america. Its 1990 return on shareholders' equity topped 40%. The stock currently goes for $35 a share, And analyst John Tumazos of Donaldson Lufkin Jenrette thinks it will outperform the sector by more than 20% this year. Tumazos's colleague Joel Price has selected an industrial equipment buy: Nacco groups, A conglomerate whose biggest customers are forklifts. The stock typically costs only 11 times Price's 1991 earnings estimate. Katharine Plourde, further of DLJ, Is smashing the table for Pall Corp, A FORTUNE 500 newcomer that produces warehousing filters. She expects the stock to move from its current price of $34 a share to a lot $40 this year,/p>

graph or chart: unavailable CREDIT: supplier: KIDDER PEABODY CAPTION: WHERE THE BUYS ARE IN MAJOR business Heavyindustry stocks look like big winners over the next Ray Ban pas cher year, But analysts also expect firms such as Bausch Lomb, Maker of eyeglasses (under) And conventional equipment, To flourish,/p>

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