Five Rising Stars Catch A Pro's Eye

Investment manager John Moore prides himself on being a long-term investor with a seven-year focus on stocks. "I'm no value player," says the director mf asset management at Value Line. "I'm strictly an earnings-and price-momentum investor: Give me a stock that has come off its bottom--and that is clearly on the rise--and I'll grab it."

So what is Moore grabbing right now? These stocks top his list:

-- Andrew, a supplier of electronic gear, such as satellite, cellular, and microwave antennas and radar and navigational systems.

-- Dollar General, operator of 1,900 discount stores in 24 states, mainly in the South, East, and Midwest.

-- EMC, designer and maker of data-storage equipment for computers.

-- Gillette, the razor people, who also make stationery items, including the Paper Mate pen.

-- Loral, a defense contractor supplying systems for combat and training, intelligence, and surveillance.

Andrew has been a highflier, climbing from 24 a share early this year to 50 1/2. Apart from surprising earnings gains, Andrew is a play on the new alliances being formed in telecom, cable TV, and software, says Moore.

Dollar General is a stock that has come off its bottom and, since January, risen 10% in price, to 29. Even though the retail trade is lackluster and competition stiff, Dollar General has posted strong gains in recent years.

EMC, on the other hand, headed south when a glitch in second-quarter shipments crimped earnings. Moore quickly bailed out of the stock, which fell from 22 to 13. But he started moving back in when it rallied--to 17--as earnings started to firm up again last quarter. The stock is now up to 21. He is impressed by its long-term outlook.

Gillette and Loral are examples of companies that have consistently exceeded earnings forecasts. Gillette, whose stock has tripled in the past five years, continues to chalk up big earnings increases. And Loral is benefiting from the consolidation in aerospace.

On the whole, says Moore, the market "will hit new highs as interest rates peak in the fourth quarter. That's when investors will again focus on the good earnings we've been seeing."

      STOCK           P-E     HIGH    LOW     RECENT
      ANDREW          31      50 1/2   24     50 1/2
      DOLLAR GENERAL  24      29      19      29
      EMC             19      23      12      21
      GILLETTE        23      73      57      72 3/4
      LORAL           18      42      33      39
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