The Pros' Picks: Jeffrey M. Applegate

COMPANY SYMBOL PRICE** P-E RATIO***
CISCO CSCO 24.09 34
P-E is actually cheap compared with earnings growth and shares of peers.
FREEPORT-MCMORAN FCX 44.73 24
Pricing power rising with global economy. Cheap in light of cash flow. Takeover candidate.
HALLIBURTON HAL 25.46 19
Earnings estimates are climbing. Shares will rise with end of asbestos litigation.
HEALTH MGMT ASSOC. HMA 23.51 17
A rural hospital operator whose steady growth justifies is P-E. It has a strong balance sheet.
ILLINOIS TOOL WORKS ITW 81.44 22
With 40% of sales from outside U.S., benefits from weaker dollar and global economic recovery.
PULTE HOMES PHM 87.89 8
Long-term growth opportunity through consolidation of fragmented housing industry.
TYCO INTL TYC 25.47 17
Getting over accounting and governance issues while business improves globally.

* Panelists, or their firms, may have financial interests in these stocks.

** Dec. 12

*** Based on forecast earnings for fiscal 2004

Data: Bloomberg Financial Markets, I/B/E/S

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