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Stocks in the household products industry have become less reliable as investments in the late 1990s for a wide variety of factors. Earnings and stock prices have fallen short of expectations of analysts and investors as a result of this. Investors need to be selective when assessing individual shares.

The furniture and home furnishings industry is comprised of companies that manufacture products for the home, office, and commercial sectors. These stocks have become less timely in 1999 and the year 2000, even though the US economy continues to grow and industry profit trends are favorable. Investors will find several good issues here, but must be selective in their choices.

Stocks in the building materials industry increased in value during the bull market in technology stocks in the 1990s. Increases in construction spending, in both the private and public sectors, in the year 2000 will be the most important key for growth in this industry. Investors need to be cautious with shares in the year 2000, but several issues have potential for the the next three to five years.

Stocks in the restaurant industry have performed will in late 1999 and early 2000 despite good earnings and the good US economy. The long-term prospects for the restaurant industry remain favorable due to the habits of the aging baby-boom generation and other customer-focus factors of the industry. There are several timely stocks in this sector, and investors will find several with good potential for the next three to five years.

Trucking and transport leasing stocks have declined since the beginning of the year 2000, due to concerns over driver capacity and rising fuel costs. Slower economic growth and the high turnover among truck drivers is having a negative effect on the industry and a possible slowdown for trucking demand. Investors may find some buying opportunities here, although these stocks have underperformed the market.

The retail (special lines) industry, which is comprised of a wide variety of retail outlets, performed well during the 1999 Christmas holiday selling season. The US economy is still bullish, which is good for the industry, and online retailing has become an important part of the sector. Investors need to be selective in their choices as these stock prices can be volatile.

Stocks in the semiconductor (capital equipment) industry have performed well in the 4th qtr of 1999 with good orders from chipmakers in the Pacific Rim countries, and have become timely in the 1st qtr of the year 2000. New technologies and capacity expansion are two factors which will the industry to grow by 20% to 30% in the years 2000 and 2001. Investors should seek only the most timely stocks as this industry can be volatile.

A strong global economy and good economic conditions in the US have made it possible for the packaging and container industry to reap benefits in the year 2000. Geographic expansion and industry consolidation will also enhance earnings and growth potential, in spite of competition. These stocks are expected to track the market in the years ahead and several have good growth potential for the next three to five years.

Stocks in the restaurant industry have become less timely in 1999 in spite of good operating results during the year for many chains in this sector. Competition and rising interest rates are two of the challenges that the industry faces in the year 2000, and many operators are take steps to keep customers returning. Several of these stocks are timely in late 1999 and the year 2000, and for the next three to five years, but investors need to be selective.

The robust US domestic economy continues to benefit the trucking and transport leasing industry and the truckload sector is expected to increase rates in the near future. However, the tight market for drivers, inflation, and rising fuel costs has caused share prices to weaken in late 1999, and prospects are mixed in spite of improved less-than-truckload fundamentals. Investors will find many of these share timely and several have good prospects for the next three to five years.

The retail (special lines) industry is comprised of a diverse group of store chains which have mixed prospects for the upcoming holiday selling season in 1999, even with the US economy expected to grow. Electronic commerce and the Internet, along with changing customer habits and tastes are also expected to have an effect on the industry. Investors need to be selective when evaluating stocks in this competitive industry.

Earnings and profits for the drug industry have been good for the second half of 1999 and this trend is expected to continue for the next ten years, as well, price hikes have a better environment, also. However, some drugs are losing patent protection in the coming years, and drug industry stock prices have fallen during 1999. These stocks are timely for investors due to good earnings and demographic trends in 1999 and later.

The near-term earnings-growth prospects for the packaging/container industry as a whole are poor, but the long-term prospects for many companies within the industry are brighter. Investors with a growth orientation and a three-to-five-year investment horizon are advised to consider Caraustar, Owens-Illinois, Crown Cork & Seal, Smurfit-Stone, and Shorewood.

The household products industry is mature, overall, but product innovation, brand awareness, and intelligent acquisitions can still spark healthy profit growth. Proctor & Gamble, one of the industry's bellwethers, has entered a sponsorship deal with Yahoo!, in hopes of enhancing brand awareness among younger consumers. Aggressive investors are advised to consider Oneida shares, and Scotts may be suitable for investors looking for three-to-five-year capital appreciation.

Furniture/home furnishings industry stocks, as a group, should outperform the market during the Oct 1999-Oct 2000 period. Investors are advised to proceed cautiously, however, due to possibly differing prospects for the industry's residential and office subsectors. If interest rates keep climbing, the residential subsector's performance could suffer. The office subsector's earnings prospects are apparently solidifying.

The prices of most building materials industry stocks tracked by Value Line held steady or declined in the Jul-Oct 1999 period. Lower prices have increased the attractiveness of building materials shares, but it would be advisable to wait for stronger signs that future interest rates will be flat before aggressively buying such shares.

The foreign investment company industry is comprised of a number of closed-end funds which seek to invest in a wide variety of world markets and which usually have a price discounted from share values. The world economy outside of the US continues to be bleak in the late 1990s, but these funds have the advantage of one-stop shopping for investors. Each fund needs to be separately analyzed apart from the industry as a whole, as economic and other conditions vary from one individual country to another.

Most apparel manufacturers had a disappointing holiday selling season in 1998 and the weak retail environment was exaerbated by warm weather in the US at the same time. The apparel industry is also quite competitive, but electronic commerce, brand leveraging, and improved efficiency may help the industry in the future. These stocks are not timely during the 1st qtr of 1999 and investors should select only the most timely of the larger capitalized companies.

Capacity and comparable-store sales gains have become two of the major indicators of financial health within the restaurant industry, but these data can also be misinterpreted by investors. The shift toward quality, as opposed to price, has also become a major industry trend, and some operators do not engage in discount pricing in order to attract customers. International growth, quality themes, and timeliness are some of the items which investors must seek in these stocks.

The global economic crisis, fundamental strengths, and low fuel prices have allowed the truckload sector of the trucking industry to perform well in 1998, but this may change in the future. However, there have been earnings shortfalls for the less-than-truckload sector, and the industry has also consolidated, as well. These stocks are timely in the 4th qtr of 1998 and several have price improvement potential for the next three to five years.

Consumer confidence in the US has decreased somewhat during the 3rd qtr of 1998, but interest rate cuts by the Federal Reserve Board should keep the economy going and a recession seems unlikely. Success in the retail industry in the 4th qtr of 1998 will depend on execution and the 1998 holiday shopping season, although some retail sectors are mixed. Investors need to focus upon growth companies for their selections.

Marketing in the apparel industry are planned around the seasonality of wardrobes, and the Fall 1998 weather is having an effect on sales. However, earnings have increased due to improved efficiency, branding, and advertising. Apparel is a slow-growth industry although it is in the upper half of timeliness rankings and investors need to show caution in their selections.

The household products industry is viewed as defensive by many investors due to mounting international economic problems and uncertainty as to the growth prospects of the US economy. The larger companies in this industry are able to deal with mass merchants on an even-handed basis, but many smaller ones may need to merge or form joint ventures. Investors need to be selective when evaluating opportunities in this industry.

Many investors have become skittish about the future of the US economy, but a recession is not forecast for 1998 and 1999. The carpeting industry has lost market share in the 1990s to alternatives, but several companies are taking steps to change the situation. The stocks in the home furnishings and furniture industries are timely in 1998 and several are well-ranked for the next three-to-five years.

Trucking and transport leasing have benefited from lower fuel prices and the good US economy, but the expected slowdown may hurt Less-than-Truckload carriers. Cautious investors have sold off in spite of predictions for high demand and good growth. Stocks that present good investment opportunities include M.S. Carriers, Swift Transportation and Werner Enterprises.

The men's clothing segment of the apparel industry remained strong during the 2nd qtr of 1998, although there was weakness in the women's fashion area of the industry. The Asian currency crisis has had a negative effect on the textile sector and Congress is discussing legislation to extend the North American Free Trade Agreement to the Caribbean Basin. Several apparel stocks have attractive price/earnings ratios, but investors need to be selective.