Goldman Picks Top Six "Old Economy" Stocks
By Cindy Christ
Yesterday Goldman Sachs caused a stir on Wall Street after
releasing a list of "Super Seven" technology stocks best
suited to withstand wild swings like investors saw this week
on the Nasdaq.
On Friday, the firm's capital goods analysts issued a list of
top six "old economy" stocks standing to benefit from better
-than-expected U.S. industrial activity and economic recovery
in Europe and Asia.
The six companies are General Electric Co., Ingersoll-Rand
Co., Pentair Inc., Rohm & Haas Co., Textron and United
Technologies Corp.
Analysts said earnings surprises for these companies are
likely, given the economic landscape and expected productivity
gains.
"Despite the better performance of old economy stocks in
recent weeks, these stocks still provide superior
opportunities for capital appreciation over the next year,"
analysts said in a research note.
Shares in the six companies didn't enjoy the across-the-board
gains posted by Goldman's Super Seven on Thursday.
General Electric (GE) finished up $1.75, or 1.1 percent, at
$158.63. Ingersoll-Rand (IR) slid $1.13, or 2.5 percent, to
$44.13.
Pentair (PNR) jumped $0.81, or 2.2 percent, to $38.56. Rohm &
Haas Co. (ROH) was unchanged at $44.75.
Textron (TXT) fell $1.06, or 1.7 percent, to $60.94. United
Technologies (UTX) slid $0.56, or 0.91 percent, to $60.94.