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Growth Stocks Bounce Back
(MONEY Magazine) – Only one of our MONEY 30 stocks lost major ground in the period that ended Nov. 28, but it was a doozy: Enron, the imploding energy giant, crashed an incredible 95.6% in a single month to just 61[cents] a share. (For more on Enron's fall, turn to page 30.) A few others saw slight dips for the month (Coca-Cola, down 3.8%; Mattel, -2.3%; McDonald's, -1.1%; Fannie Mae, -1%) but for the rest it was a sweet four weeks, with more than a third of the companies in our index of leading growth stocks registering double-digit gains. The tech stocks in the index posted the biggest jumps. Best performer: Sun Microsystems, which zoomed 33.5% for the month and is now up 66.3% from its 52-week low in September. The computer networker offered a bit of hope to investors starved for good news by stating that orders so far in its latest quarter are higher than those in the previous quarter. (Reality check: Its latest quarter included Sept. 11 and its early aftershocks.) And chipmaker Intel rose 31.4%; the company announced a new transistor design to make microprocessors faster and pave the way for speedier software applications. --STEPHANIE D. SMITH THE MONEY 30 INDEX, WHICH TRACKS THE PERFORMANCE OF 30 BLUE-CHIP GROWTH STOCKS AT THE FOREFRONT OF TODAY'S ECONOMY, GREW 4%--TO 2861--FROM OCT. 26 TO NOV. 28 (JANUARY 1996 EQUALS 1000). GO TO WWW.MONEY.COM FOR REGULAR PRICE UPDATES. % total return P/E Revenue Company (TICKER) Price 1 month 12 months ratio (billions) American International Group (AIG) $82.80 2.3% -11.5% 23.7 $48.0 Amgen (AMGN) 64.52 12.9 -2.7 45.1 3.8 AOL Time Warner (AOL) 35.50 10.4 -12.5 26.9 38.0 AT&T (T) 17.35 10.0 20.6 102.0 60.0 Cisco Systems (CSCO) 18.88 15.0 -63.0 85.8 20.0 Citigroup (C) 47.80 3.4 1.6 14.6 125.0 Coca-Cola (KO) 46.75 -3.8 -21.8 26.4 20.0 Colgate-Palmolive (CL) 57.95 0.6 0.3 26.7 9.4 Disney (DIS) 20.21 10.7 -31.6 32.6 25.0 Enron (ENE) 0.61 -95.6 -98.7 0.4 189.0 Fannie Mae (FNM) 78.99 -1.0 0.2 13.2 50.0 General Electric (GE) 39.35 5.1 -19.7 24.6 127.0 Gillette (G) 31.95 3.0 -7.0 28.5 9.1 Hewlett-Packard (HWP) 20.17 15.9 -40.9 22.9 45.0 Home Depot (HD) 43.80 13.5 11.1 29.4 51.0 Intel (INTC) 31.76 31.4 -24.2 55.7 28.0 Johnson & Johnson (JNJ) 59.99 2.7 21.2 27.3 32.0 Mattel (MAT) 18.51 -2.3 44.2 19.1 4.8 MBNA (KRB) 33.01 12.7 -8.0 14.9 8.8 McDonald's (MCD) 26.76 -1.1 -13.6 17.8 15.0 Merck (MRK) 65.35 0.2 -28.0 19.1 47.0 Microsoft (MSFT) 62.80 5.3 -6.3 34.1 26.0 Motorola (MOT) 17.01 0.4 -17.3 113.0 33.0 Nike (NKE) 51.76 6.0 18.9 21.7 9.5 Oracle (ORCL) 14.12 5.4 -37.7 31.4 11.0 Pharmacia (PHA) 43.95 9.6 -25.0 22.9 19.0 Schwab (SCH) 14.40 8.7 -47.9 32.7 5.8 Sun Microsystems (SUNW) 13.16 33.5 -67.6 N.M. 15.0 Tyco International (TYC) 58.36 17.7 5.0 16.0 36.0 UnitedHealth Group (UNH) 71.70 6.6 23.3 22.1 23.0 Notes: Prices are as of Nov. 28. P/E ratios are based on estimated fiscal year 2002 earnings. Revenues are for the latest 12 months. N.M.: Not meaningful. Source: Baseline. |
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