(FORTUNE Magazine) – EKCO GROUP A company whose bread and butter is producing cookie sheets, potato peelers, and mousetraps does not make mouths water on Wall Street. But what Ekco Group of Nashua, New Hampshire, lacks in pizazz, it makes up for in perseverance. Through a combination of cost cutting and productivity improvements, the company has managed to keep growing in a sluggish economy. Gabe Lowy, an analyst at Gruntal & Co. in New York City, estimates that Ekco's 1992 revenues will increase 26% to $210 million while earnings rise 52% to $15.4 million. Ekco's stock traded recently for $8.37, or ten times Lowy's estimate of 1992 per share earnings. Ekco offers its customers -- 3,500 supermarkets, hardware stores, and mass merchandisers like Wal-Mart -- a wide range of bakeware products, kitchen tools, plastic laundry baskets and tackle boxes, and pest-control devices. Lowy says the depth of Ekco's product line provides an edge over competitors because retailers are increasingly seeking to cut costs by reducing their number of suppliers. For example, Kmart last year made Ekco the sole bakeware supplier for most of its stores. Ekco's $4 million investment in data- processing systems also gives it an advantage by allowing it to manage inventory for retailers that supply the company with sales data. In the five years that CEO Robert Stein has been running Ekco, he has closed six plants and reduced the work force 60%, to 800. By moving some assembly and packaging operations to Mexico from Chicago, he chopped the cost of running them from $50 per hour to $10. As proof that his tough approach has paid off, Stein points to gross profit margins that have gone from 33% in 1988 to almost 41% in 1991. Ekco holds a dominant 40% share of the $200-million-a-year North American bakeware market and controls about 30% of the $260-million-a-year kitchen gadget industry. Stein hopes to grow by finding other stores -- like warehouse retailers -- to sell his products. Acquisitions also figure prominently in his strategy. Ekco recently bought Frem, a leading manufacturer of plastic home and office products. And it continues to look for companies that make nonelectric consumer products that don't require assembly, are replaced rather than repaired, and can be sold by the same retailers Ekco does business with now. Says Stein: ''If it's something sold by Kmart or Wal-Mart, it's probably something we're interested in.''

MEN'S WEARHOUSE Although growth prospects for the tailored men's-clothing industry look about as dapper as the emperor in his new clothes, Men's Wearhouse appears dressed for success. The Houston company owns 132 retail stores that sell mostly brand-name suits -- including Yves Saint Laurent and Christian Dior -- for about 25% less than the same suits cost at department stores like Macy's. Men's Wearhouse doesn't just undersell the competition; it also advertises heavily. Last year it spent $11 million on advertising -- 8% of sales, vs. an industry average of 4% for specialty retailers. CEO George Zimmer figures that men hate to shop. So the easier the experience, the more likely they will be to return. New employees at Men's Wearhouse attend a three-day course to learn about their merchandise and how to coddle customers; they are expected to call clients two weeks after a sale to check on satisfaction. The company even promises to press for free, forever, any tailored clothing it sells. Janet Joseph Kloppenburg, an analyst at Robertson Stephens & Co. in New York City, estimates the company's 1992 revenues will rise 24% to $166 million, and earnings will climb 36% to $5.7 million. The stock sells for $12.37, or 16 times her estimate of 1992 earnings per share.

ELECTROMEDICS Going under the knife is scary enough without worrying that the blood you might need during surgery is tainted by the viruses causing hepatitis or AIDS. Electromedics of Englewood, Colorado, is flourishing by helping to eliminate the worry. The company manufactures machines that collect the blood a person loses during surgery, clean it, separate out the red blood cells, and then return those cells to the patient. Electromedics has siphoned off about 30% of the $100-million-a-year autotransfusion market, mainly by aggressive marketing. The company also excels at quickly supplying hospitals with the blood bags, tubes, and bowls used in the autologous blood machines. Since they must be replaced for each patient, these products provide a constant revenue stream. Samuel Navarro, an analyst at Needham & Co. in New York City, estimates the company's 1992 revenues will rise 18% to $41.1 million, while earnings increase 105% to $3.9 million. The stock sold recently for $5.75, or 19 times his estimated earnings per share for 1992.