Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, December 12, 2008

Article Excerpt

3M COMPANY $56.04, New York symbol MMM, fell roughly 7% this week after it warned that the slowing economy will hurt its earnings. As well, the company gets two-thirds of its earnings from overseas markets, and the higher U.S. dollar will dampen its overall growth. 3M now expects to report earnings of $5.10 to $5.15 a share for 2008, down from its earlier forecast of $5.40 to $5.48 a share. For 2009, 3M expects to earn between $4.50 and $4.95 a share. The stock trades at 11.9 times the midpoint of its 2009 range. The company also announced a new restructuring plan that should save it $170 million in 2009. That’s equal to about 5% of its annual earnings. The savings should let 3M continue to fund research (5% of revenue), and pursue acquisitions. 3M is a buy. SONY CORP. ADRs $21.23, New York symbol SNE, aims to reduce its costs in the face of slowing sales of TV sets and digital cameras. Sales…