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The apparel industry is not timely in 1996, although the retail area has improved. Consumers have reallocated their spending with concerns over the economy, personal debt, and job security, and apparel prices have been reduced. Fashion trends have become important and manufacturers are catering to consumer needs, but competition is still intense. Some apparel stocks are suitable investments, but most will underperform the market in 1996.

The specialty retail industry performed poorly during the 1990s, with high inventory levels and low consumer spending. Industry prospects are good for 1996 compared to 1995, however, with 2.8% gross domestic product growth in the 1st qtr and 2.5% to 3% growth forecast for the remainder of 1996. The high-end retail segment with affluent customers is expected to outperform th market. Investors must evaluate individual stocks before investing.

Long-term prospects for the electronics industry look good as more electronic components are included in products. The demand for pentium-based personal computers requires more capacitors, and manufacturers will capitalize on this demand. Cost reduction and the redirection of excess capacity created by drying old markets are bywords of this group. The overall outlook is still above average, but the group still has many good choices until April of 1997.

The move into digital and high end office equipment by US business is fueling growth in the office equipment and supplies industry. Color digital copiers at Xerox, electronic postal meters at Pitney Bowes and the spread of automatic teller machines for Diebold are just three examples of this phenomenon. Business forms management is expected to grow as technology replaces forms in triplicate. Business expansion is driving growth in retail office supplies; Office Depot, OfficeMax and Staples together claim a 15% market share.

A number of the companies in the electrical equipment industry have done well domestically despite the relatively sluggish growth of the US economy. Overseas results are mixed with China and India holding the most promise. Japan's economy is on the upswing and the European economy is soft. Investors should consider companies individually rather than the group as a whole. Companies with timeliness rankings of the 'highest' or 'above average' warrant attention.

The outlook for mainframe computers is good, for personal computers (PC) not so good. Businesses are using networks more often to tie together PCs and share peripherals rather than buy new PCs. PCs are still selling well and overall the industry is expected to do well in 1997. Japanese manufacturers, with a foothold in the portable market, are making inroads in the desktop market and will create narrower markets for US manufacturers. Analysts are cautious in their support of this group.

Change is accelerating in the broadcast cable industry, as concepts such as the information superhighway continue to be redefined. The change creates opportunities but also carries great risks for potential investors. Investors should thoroughly educate themselves with sometimes hard-to-find information on the segments they are considering before spending their money. There are many timely options in the industry.

Potential investors in the environmental services industry should examine individual stocks for timely choices. Different segments of the industry are experiencing different conditions, with many of the waste hauling companies hurt by declining profits, and smaller companies in the hazardous waste treatment industry profiting from the rapid consolidation of the industry. Ionics is well positioned out to 2001 in the expanding water purification service segment.

Short-term investors in the restaurant industry will likely be disappointed in the 1st qtr 1996 but find earnings better in the spring. Longer-term prospects are better for the industry, as the trend among two-income families to eat out continues to gain momentum. Three rapidly growing specialty chains are being tracked for the first time by Value Line: Boston Chicken, Papa John's International, and Lone Star Steakhouse and Saloon.

Potential investors will find the industrial service industry, which includes temporary employment agencies and janitorial services, above average in earnings potential. The majority of equities listed experienced steady stock price increases since Dec 1995 due to employment increases, the trend towards corporate outsourcing, and other factors. Personnel placement and uniform services are among the most timely segments of the industry.

The air transport industry is expected to post improved profits in 1996 and 1997, boding well for at least some of the companies' stocks. The industry made a profit in 1995 for the first time since 1989. Potential investors, however, should be aware of labor conflicts at some of the carriers and of the general cyclical nature of the industry. Air traffic is outpacing capacity, increasing loads and efficiencies. Meanwhile, the impact of reduced airlines commissions to travel agents is not yet known.

Consumer debt and job security concerns led to a steep decline in consumer confidence from Dec 1995 to Jan 1996, resulting in weak retail sales and low margins. This is especially true in furniture and clothing. Several specialty chains have strengths, however, as do several chains with high income customers. These stocks are more volatile than in other industries and investors should seek the most timely issues.

Soft demand and the effects of a weak 1995 Christmas retail season are continuing to plague the apparel industry. There is much less consumer spending for apparel, with declines in same-store sales and margins, except for collections such as Nautica and Tommy Hilfiger. Low job security, high consumer debt, and slow economic growth continue to be industry concerns. Most stocks here are not timely and investors should look elsewhere.

Higher raw material prices, lower demand, and other factors narrowed margins for the textile industry in 1995, and the industry is consolidating to absorb overcapacity. There is also overseas expansion, through joint ventures rather than mergers, and industrial and home furnishing fabric makers are positioned for this. Most of these stocks are untimely, however, and investors need to seek individual issues for long-term gains.

Successful product introductions of specialty office equipment will be a key factor for industry earnings gains in 1996. Forms management accounts are becoming more important with the technological advances in electronic data interchange, copiers, and printers. There should also be good net gains for office superstores, such as Staples and Office Depot. Investors should seek timely stocks with leadership positions.

Sales were good for the computer and peripherals industry in 1995, with strong demand for both personal computers and mainframes. Less demand should slow sales in 1996, however. Earnings and sales, though, will gain over the next three to five years, especially in foreign markets. Computer and peripheral stocks will outperform the market in 1996 and there is good price appreciation potential for the next three to five years.

Electronics industry stocks are not as timely as they were in 1995 and their markets no are longer growing. Cost control, especially for research and development, is one obstacle. Lo-tech stocks should perform well in 1996, however, since they rely less on research. Technological leadership will be the most important factor for stock price appreciation for the next three to five years, with hi-tech stocks in the lead.

Electrical equipment companies expect to increase earnings in 1996 with new product development, increased market penetration, and overseas market expansion, especially in Eastern and Western Europe. Divestments and acquisitions, along with enhanced productivity, also helps earnings growth in this industry. Conservative investors will find safe stocks here with three to five year potential, although many are not timely for 1996.

The restaurant industry is comprised of the casual dining, family, and fast food segments. These segments have been showing divergent trends in the last three months of 1995. Fast food chains are having the best results, family restaurant earnings are more mixed, and casual dining chains are seeing slower sales. These stocks are average investments for 1996, but several, such as McDonald's and Applebee's, are timely.

Steady earnings are expected for the industrial services industry in 1996, due mainly to solid US economic growth. Demand for industrial services to save money through outsourcing will also increase. Supplier reduction, consolidation, and competitive advantages of size are the major industry trends for 1996. These stocks are timely investments and are expected to outperform the market for the next six to 12 months.

Ratings rose for cable TV and fell for broadcast TV during 1995, due to the departure of older viewers and rejection of new shows by younger viewers in the broadcast field. The media industry is still consolidating, although the effects of this are unforeseen. Earnings for the industry for the next three to five years are unpredictable, but there are some short-term trading opportunities for merger-related stocks.

Price drops for corrugated cardboard and old newspaper have hurt earnings for waste-haulers in the 4th qtr of 1995. They will benefit in 1996 from EPA waste-volume and landfill regulations, as well as from a growing economy, however. Demand has increased for water purification due to ultrapure water requirements in the food and other industries, but remedial services may not do well. Investors must select timely leaders among these stocks.

The airline load factor rose 2.8% for the first 10 months of 1995, along with a 1.4% capacity increase and a 2.6% rise in traffic. Airlines have shown a profit in 1995 as well, the first since 1989. The new commission structure for travel agents will also save money for airlines, but the low-priced, short-haul service is now more competitive. These stocks will do well in 1996 with higher profits for the year.

Earnings prospects for the specialty retail industry in 1996 are weak, due largely to competition and mixed consumer spending. Same-store sales for Oct 1995 deteriorated and the 1995 holiday shopping season is expected to be weak. Sluggish wage growth and an aging population are two trends that will affect consumer spending in coming years. While this industry is not timely in 1995 and 1996, several stocks may be good investments.

Specialty niche marketing, lower prices for apparel, and expansion are leading to year-to-year declines or slower earnings growth for retailers in 1995. Same-store sales have been weak throughout the year with competition for consumer spending from computers, automobiles, and other large items. Consolidation in the retail industry is also increasing. Few stocks in this industry are of interest to investors in 1995 and 1996.

Profitability for the apparel industry is not likely to improve in 1995 over 1994. Profit margins will probably slip even though sales will increase at a rate of 5% to 6%. At the retail level, same-store sales have declined due to weak consumer spending, and bankruptcy protection filings are increasing. Retail competition is increasing and the woman's apparel market is changing. Apparel stocks are not good investments in 1995 and 1996.

Weak apparel and home decorative print sales, along with volatile raw material prices, will make 1996 a challenging year for the textile industry. New textile trade agreements and the lapse of the Multi-Fiber Arrangement will make competition even stronger. Increased industry consolidation may be needed for long-term competition in the domestic market. Textile stocks will not rebound in 1996, but several have potential for 1998-2000.

The computer and peripherals industry is benefitting from favorable US economic growth, with 8%-9% durable goods expenditure increases expected. European and Asian economies are mixed now, however. Demand in the small business and home markets for PCs is strong, and the new markets in Eastern Europe, Asia, and elsewhere are opening. Many of these stocks are expected to outperform the market in the next three to five years.

New products and enhancements, along with demand for high tech equipment, are creating strong earnings for office systems suppliers. Demand for printed forms is decreasing with use of electronic data interchange and advances in copiers and printers. Marketing, discount prices, and expansion are factors in the increased market share of office superstores. Investors must concentrate on business leaders for stock growth.

New applications for electronic systems and increased demand are the two basic trends benefitting the electronics industry in 1995. Electronic equipment for automobiles is an example of where these trends are merging. There may be some consolidation of distributors in the future, but hostile takeovers are not likely. These stocks have a favorable timeliness rating, and AMP Inc is an excellent pick for yield and earnings.

The overseas and and industrial markets have become more important to the electrical equipment industry in 1995. The capital goods, industrial, and commercial sectors in the US are thriving, and the Asian and Western European markets are expanding. Increased manufacturing efficiency is cutting costs for the industry as well. Several stocks are well-ranked for timeliness and have growth potential for the next three to five years.

Restaurant industry stocks have a mixed performance record for the Jun qtr of 1995. Same-store sales, a common measure for restaurant results, appears to have softened since Jun 1995, and this could cause problems for some of the weaker companies in this competitive industry. Several stocks, however, will outperform the market in 1995 and 1996 and investors should select those with good balance sheets and successful operations.

Airlines and air cargo companies are more profitable in 1995 due to limited expansion, better cost controls, reduced short-haul competition, and firmer prices. Airline traffic has slowed in 1995 after a 5% increase in 1994. Travel agent commissions for domestic flights are being cut to $50 and $25 for round-trip and one-way flights respectively. These stocks will continue to perform well due to profits in 1995 and 1996.

Acquisitions, mergers, and consolidation continue to dominate the broadcast and cable TV industries. Time Warner is acquiring Turner Broadcasting, CBS Inc is being acquired by Westinghouse, and Capital Cities ABC Inc is being purchased by the Disney Co. These mergers may not make business sense, but they are good for shareholders of the acquired companies. This industry has opportunities for the intelligent investor.

Stock prices in the employment service sector of this industry have risen due to a 40% earnings gain in the Jun 1995 qtr. Overseas operations of US corporations, diverse income sources, and outsourcing of human resource functions allows this group to have good results. Revenues and earnings for the essential services group continue to be solid as well. These stocks will outperform the market through the 1990s.

Stocks of the environmental industry are rising due to good revenues and earnings since 1994. Acquisitions, restructuring, and price relief are also benefitting results. Higher recycled paper prices are aiding the recycling sector, new operational requirements are bolstering landfills, and water treatment is in demand. Investors need to select timely stocks that have gained operating efficiency and technological leadership.

Slow wage gains over the past twelve months and erratic consumer confidence are having an unfavorable effect on specialty retail earnings. Competition from department stores, factory outlets, and discounters, along with low demand, are also having an impact. Earnings for the 1st half of 1995 are sluggish as a result. These stocks are expected to underperform the market and investors must show caution in making selections.

Profits are slowing in the retail industry in 1995, due to high promotion levels and and erratic same-store sales. Large item sales and low wage growth are also affecting retail earnings. Consolidation is continuing industry-wide, especially among larger department stores, such as Federated, Macy's, and Wal-Mart. Retail stocks are volatile and investors need to watch Beta trends and other measures before investment.

Higher raw material and other costs are hurting the textile industry in 1995. Reluctance by consumers to accept higher prices is also keeping profit margins low, but demand for stretch fabrics and denim are helping some sales. Technology and textile imports are factors which are also affecting the US industry. These stocks are currently volatile and investors need to concentrate on the next three to five years.

Earnings and sales in the apparel industry are lower in the 1st half of 1995 than for the same period in 1994. Apparel manufacturers are keeping bank credit lines and inventory levels lower to maintain earning margins, and results for 1996 will be modest, mainly through retrenchment. These stocks are expected to underperform the market in 1996, and conservative investors need to choose from the few timely issues in this industry.

Demand for personal computers is high, especially in the small business and home markets. Mainframe sales have also increased, and sales of disk drives and other components are high as a result. However, the personal computer market has leveled off and some potential customers are deferring purchases. International and US economic growth for the next three to five years will be good for these industries. These stocks will outperform the market through 1998-2000.

Earnings are strong for the office equipment and supplies industry through research, restructuring, and successful introduction of new products. Long-term earnings beyond 1996 are enhanced by increased spending for new digital equipment and business forms. Retail chains Staples and Office Depot are rapidly increasing market share. Companies with strong finances and market leadership are timely investments.

Trends in the electrical equipment industry are mixed in 1995, with the automotive sector stronger than the housing market. The European and US industrial markets are becoming more competitive and efficient. Divestment, acquisitions, productivity improvement, and cost-cutting are among factors behind enhanced earnings. Most of these stocks are not timely, but several may be attractive for the next three to five years.

Electronics industry stocks outperformed the market over the last 18 months and remain timely. Electrical content growth in both the industrial equipment and consumer goods industries is having an impact, along with computer and computer peripherals demand. Distributors and computer network manufacturers are also prospering. Electronics industry stocks are timely and well positioned for the conservative investor.

Strong demand for advertising time in commercial TV for 1995-1996 is helping earnings in this industry. Both cable and commercial broadcasters will also be providing appealing programming for the 1995-96 broadcast year. Agreements within the industry concerning the information highway and other topics, however, are what investors pay attention to. Investors seeking income should look elsewhere, but there are investment opportunities here.

Earnings are recovering for the environmental industry in 1995, especially for landfill operations and waste hauling companies. The increase in volume will only be moderate, however, for the next three to five years and earnings increases will be slow. The hazardous waste sector is mixed, but there is greater demand for water purification. Investors will find some attractive stocks for the next three to five years.

Stocks in the employment service sector fell, due to the loss of US jobs in April and May of 1995. However, these stocks may not underperform the market as a consequence of diverse revenue sources, overseas profits, and outsourcing by US firms. This sector should have moderate growth in the latter half of 1995. Investors seeking long-term gains will find stocks of value in the employment subgroup of industrial services.

Restaurant companies have been expanding in 1995, due to lower interest rates and other factors. Fast food chains have been actively expanding internationally, and casual diners have planned theme chains. The industry has become volatile, due to US economic slowing and fears of possible recession. These stocks are now rated average, but several are of interest to investors not looking for immediate income.

The specialty retail stores sector, which comprises several categories, has been affected by increased competition and the consumer slowdown in 1995. Stock prices for specialty stores are lower as a result. Higher installment debt, increased saving, and competition will have a negative result on earnings. Investors should avoid stocks in this industry, with the exception of proven companies, such as CompUSA and Circuit City.

Retail stores reported weaker 1st qtr earnings in 1995, mainly due to higher interest rates and layoffs. Increased debt service, interest rates, and job insecurity could also lower retail sales in the rest of 1995 and for 1996. Several retail chains, such as Wal-Mart, are opening new stores, however. Retail industry stocks are cyclical and, with exceptions such as Wal-Mart and Kohl's, will underperform the market.