Zacks Investment Ideas feature highlights: 3M Co., Caterpillar, W.W. Grainger and United Parcel Service - Press Releases

For Immediate Release

Chicago, IL – July 20, 2010 – Today, Zacks Investment Ideas feature highlights Features: 3M Co. (MMM) , Caterpillar (CAT), W.W. Grainger Inc. (GWW) and United Parcel Service (UPS)

Don’t Wear Down: Buy G&I Stocks

Most investors can meet their long-term objectives by targeting growth and income stocks. That’s because G&I stocks are typically larger companies with stable business models that are leaders in their respective markets. These companies have steady revenues and earnings, are positioned to deliver solid long-term earnings growth, and produce enviable returns on equity. Those attributes allow a company to generate consistent cash flow and pay out a share of its profit in the form of dividends.

Here are four stocks that meet those growth and income factors. Specifically, each stock has a Zacks #2 Rank, a dividend yield of at least 2%, a return on equity (ROE) of 10% or higher, and expected long-term EPS growth of no less than 10%.

3M Co. (MMM) is a diversified technology company worldwide. It operates in six segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics; and Electro and Communications.

The company had first-quarter EPS of $1.40, topping the Zacks Consensus Estimate by 19 cents, or 15.7%. In the last four quarters, 3M has beaten consensus estimates by an average of 17.0%.

In the last month, the Zacks Consensus Estimate for 2010 is up 4 cents, while the Zacks Consensus Estimate for 2011 is down a penny. 3M is scheduled to report second-quarter results on July 22.

MMM is a Zacks #2 Rank stock. Its shares trade at 14.4x 2010 consensus EPS estimates.

Caterpillar (CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide.

For the first quarter, Caterpillar earned $0.50 per share, an increase of 28.2% compared to the year-ago quarter. Its Q1 EPS also beat the Zacks Consensus by 11 cents or 28.2%. We note that the company has beaten the Zacks Consensus in the last five quarters by an average 400%.

In the last month, the Zacks Consensus Estimate for 2010 has increased 12 cents, or 3.8%, to $3.28, and the Zacks Consensus Estimate for 2011 has climbed 7 cents, or 1.5%, to $4.73. Caterpillar is scheduled to report Q2 results on July 22.

CAT is a Zacks #2 Rank stock. It trades at 19.7x 2010 consensus EPS estimates.

W.W. Grainger Inc. (GWW) and its subsidiaries distribute facilities maintenance and other related products and services in the U.S., Canada, Japan and Mexico.

On July 15, the company reported second-quarter results of $1.65, beating the Zacks Consensus Estimate by 15 cents, or 10.0%. GWW has beaten the Zacks Consensus in four out of the last five quarters (it met estimates in the other) by an average of 8.4%.

In the last week, the Zacks Consensus Estimate for 2010 is up 14 cents, or 2.3%, to $6.23. The Zacks Consensus Estimate for 2011 is also up 14 cents, or 2.0%, to $7.18.

W.W. Grainger has a Zacks #2 Rank, and its shares trade at 16.8x 2010 consensus EPS estimates.

United Parcel Service (UPS) is a package delivery company. The company provides transportation, logistics and financial services in the U.S. and internationally.

UPS had first-quarter EPS of $0.71, beating the Zacks Consensus Estimate of $0.69. In the last three quarters, the company has beaten consensus estimates by an average of 3.8%.

Consensus estimates for 2010 and 2011 have been flat for the last two months. UPS is scheduled to report second-quarter earnings on July 22.

UPS is a Zacks #2 Rank stock, and it trades at 18.3x 2010 consensus EPS estimates.

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