Powering Through the Slowdown
Despite a weakening economy, top-quality stocks are reporting robust profit gains
By Michael Sivy

(MONEY Magazine) – Forecasters were surprised when third-quarter economic growth came in at a weak 1.6%. But so far, at least, corporate profits aren't suffering.

The most recent earnings for the S&P 500 are up more than 12% from a year ago. And a surprising number of companies are reporting profits that exceeded Wall Street's expectations, according to Zacks Investment Research.

Among Sivy 70 stocks, standouts include Texas Instruments, with a 25% gain in earnings per share. The stock is cheap, and the chipmaker's long-term prospects are stellar (see page 112).

Another winner was Burlington Northern, with earnings up 22%. Business at the leading railroad was strong across the board. Revenue from coal hauling, in particular, rose 20%. Burlington is a major transporter of low-sulfur coal from Wyoming's Powder River Basin.

In October, five of the Sivy 70 rose more than 10%; none dropped that much. The winners: Comcast, IBM, Johnson Con-trols, Limited Brands and Merrill Lynch.

Read editor-at-large Michael Sivy online every Tuesday at cnnmoney.com/sivy.

E-mail him at msivy@moneymail.com.

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.