We’ve upgraded our WSSF Ratings for these three stocks: DEL MONTE FOODS CO. $11 (New York symbol DLM) from “Extra risk” to “Average”. The company’s acquisition of the Meow Mix and Milk-Bone pet food brands enhances its long-term prospects, since pet foods tend to generate higher profits than consumer food products. That should give Del Monte more cash for dividends and share buybacks. Buy. TIM HORTONS INC. $38 (New York symbol THI) from “Extra risk” to “Average”. The company is finding new ways to expand sales, including a new deal to install outlets inside seven Canadian Wal-Mart stores. That could lead to more in-store outlets, perhaps in the United States. Buy....

NORDSTROM INC. $38 (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 244.2 million; Market cap: $9.3 billion; WSSF Rating: Average) operates 160 upscale retail stores in 28 states, including 100 full-service department stores. Nordstrom’s smaller stores sell shoes and clearance merchandise. The company’s focus on more affluent shoppers continues to pay off. In the past four years, households with income over $75,000 a year have grown faster than the overall population. Upscale shoppers are also less likely to cut spending in the face of rising fuel costs and interest rates.

Good service is a hidden asset

Another big reason for Nordstrom’s success is its close attention to customer service. The company spends more time and money training employees than most other retailers, which helps build customer loyalty and spurs repeat visits. Sales associates also receive commissions in addition to a salary, so there’s more incentive for them to increase sales....

THE SHERWIN-WILLIAMS CO. $67 (New York symbol SHW; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 130.8 million; Market cap: $8.8 billion; WSSF Rating: Above average) aims to buy back roughly 30 million of its shares, or 23% of the total outstanding. The company did not reveal a timeline for these repurchases. But based on its average annual share repurchase rate of $312 million over the past three years, it would take over six years for Sherwin to meet its new goal. The stock gained 5% on the news. However, Sherwin is still vulnerable to the slowdown in the housing market. Unsettled class-action lawsuits over lead paint also add to its risk....

CONAGRA FOODS INC. $24 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 487.3 million; Market cap: $11.7 billion; WSSF Rating: Above average) has recalled all of its Banquet and store-brand frozen beef and poultry pot pies due to possible salmonella contamination. Earlier this year, the company had to suspend production of its Peter Pan peanut butter following a salmonella outbreak. It’s unclear whether this latest case is due to contamination or improper cooking. In any event, the recall should have little impact on ConAgra’s profits. ConAgra is a buy. CINTAS CORP. $35 (Nasdaq symbol CTAS; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 158.9 million; Market cap: $5.6 billion; WSSF Rating: Average) reported revenue of $969.1 million in its first fiscal quarter ended August 31, 2007, up 6.0% from $914.2 million, thanks to a recent expansion of its salesforce. However, the costs of adding the extra employees cut per-share profits 3.8%, to $0.51 to $0.53....

NCR CORP. $26 (New York symbol NCR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 180.5 million; Market cap: $4.7 billion; WSSF Rating: Average) plans to focus on its core ATM (automated teller machine) and cash register businesses now that it has spun off subsidiary Teradata Corp. ATMs that feature biometric technology, such as eye and fingerprint scanners, are a big growth area for NCR. This will improve security and cut down on fraud. Since biometric ATMs are easier to use, they should help banks attract more customers, particularly in developing countries. NCR is also expanding its self-checkout technology. Big retailers like Wal-Mart and Home Depot use these systems, since they cut costs and speed up waiting times. NCR now aims to apply self-serve technology to other industries. For example, kiosks in hospitals and clinics will make it easier for patients to make appointments, as well as update insurance and other information....

TERADATA CORP. $28 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 180.5 million; Market cap: $5.1 billion; WSSF Rating: Average) provides data warehousing services to 850 of the world’s largest companies. Teradata’s computer systems and software helps these businesses capture, store and analyze a wide variety of data, such as customer buying habits. Identifying trends helps Teradata’s clients improve customer satisfaction and expand profits. The company was a wholly owned subsidiary of NCR Corp. (see box) until October 1, 2007. That’s when NCR handed out its Teradata shares to its own stockholders as a special dividend. NCR investors received one Teradata common share for each NCR share they owned. The dividend is a tax-free distribution. NCR stockholders will only have to pay capital gains taxes on Teradata when they sell the stock....

THE PROCTER & GAMBLE CO. $71 (New York symbol PG; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 3.1 billion; Market cap: $220.1 billion; WSSF Rating: Above average) is one of the world’s largest makers of household and personal care products. Over 20 of its 300 brands have annual sales of over $1 billion, including Crest (toothpaste), Tide (detergent), Head & Shoulders (shampoo) and Pampers (diapers). The company is making good progress integrating its 2005 acquisition of The Gillette Co. The restructuring should eventually let Procter realize over $1 billion in annual cost savings. That will help it cope with rising raw material, packaging and fuel prices. The Gillette purchase added several top-selling brands to Procter’s portfolio, including Gillette razors and Oral-B oral care products. Procter will probably sell some slower growing household brands, like Duracell batteries and Folgers coffee, to focus on its more profitable health and beauty operations....

STATE STREET CORP. $76 (New York symbol STT; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 384.8 million; Market cap: $29.2 billion; WSSF Rating: Average) earned $1.15 a share (total $449 million) in the third quarter of 2007, up 26.3% from $0.91 a share ($358 million) a year earlier. These figures exclude restructuring costs related to State Street’s recent purchase of Investors Financial Services Corp., which provides custodial services to institutional investors. The new operations helped increase revenue 46.7%, to $2.2 billion from $1.5 billion. The company paid $4.2 billion in stock for Investors Financial. Due to the strong performance of this new operation, State Street now feels the extra shares will cut its 2007 earnings by $0.06 a share, or 50% less than its original estimate. State Street came under pressure in August due to its exposure to off-balance sheet entities called “conduits”, which trade assetbacked securities. However, these conduit assets are less risky than subprime mortgage loans, so the stock quickly recovered....

Computer chip making is a highly competitive business, and requires heavy spending on research and new product development. That’s why we focus on industry leaders that can easily absorb these huge costs, like Intel, Nvidia and Texas Instruments. Although earnings at all three are rising strongly, we see only two as buys at current prices. INTEL CORP. $26 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.8 billion; Market cap: $150.8 billion; WSSF Rating: Above average) is the world’s largest maker of electronic chips. Microprocessors for personal computers and servers account for two-thirds of its revenues....

PHILIPS ELECTRONICS N.V. ADRs $41 (New York symbol PHG; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $45.1 billion; WSSF Rating: Average) continues to sell smaller investments to free up cash for its core medical equipment, lighting and consumer electronics operations. It recently sold its 2.5% stake in Nuance Communications Inc. for 60 million Euros (1 Euro = $1.43 U.S.). The company also cut its interest in joint venture LG.Philips LCD, from 32.9% to 19.9%, for 1.55 billion Euros. In the third quarter of 2007, earnings fell to 0.30 Euros a share (total 331 million Euros) from 3.57 Euros a share (4.2 billion Euros) a year earlier. The latest quarterly earnings exclude gains on recent sales. However, the year-earlier figure includes a 4.2 billion Euro gain on the sale of the company’s chip-making business. Revenue rose 3.2%, to 6.5 billion Euros from 6.3 billion Euros. The cash from these sales will also help Philips buy back 4 billion Euros worth of its stock. It spent 1.2 billion Euros on stock buybacks in the first nine months of 2007. Philips could also use some of the cash to pay a special dividend....