Milacron posted a small profit gain in the fourth quarter, but sharply lowered earnings guidance for the current year on Tuesday. Those poor prospects appear to be fully reflected in the stock's price. The shares are down 42 percent from their 1998 high and trade at just 10 times earnings. Business is expected to be back on track by 2002, and Milacron could grow earnings almost 10 percent a year after that. Plus, the stock yields 2.4 percent.
Thrifts are among the companies that profit most from falling interest rates.
And Washington Mutual is near the top of many analysts' lists of stocks that will benefit from the Fed's rate-cutting. Washington's earnings could rise more than 20 percent this year and post 12.5 percent annual gains after that. Shares trade at less than 12 times estimated earnings for the current year and pay a 2.4 percent yield. Sign up to get Sivy on Stocks delivered by e-mail three times weekly. Time Inc. All rights reserved.