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SEARS STOCK IS EXPECTED TO `TURN AROUND’

SHARE SEARS STOCK IS EXPECTED TO `TURN AROUND’

Question - My husband and I have several hundred shares of Sears, Roebuck. They have been so unpredictable that we wonder if this is a good stock to own.

Answer - There should be success in store for patient investors.Stock of Sears, Roebuck & Co. (around $49 a share, New York Stock Exchange), the world's third-largest retailer, will likely be an above-average performer both intermediate and long term, predicted Daniel Barry, first vice president with Merrill Lynch & Co.

Sears is turning around its merchandising operation, its Allstate business remains one of the best insurance companies despite casualty losses from the California earthquake, and its stock price is reasonable, he noted.

"Sears is going to be one of the big turnaround stories of 1994," said Barry. "I expect 14 percent annual growth over the next five years."

Question - I purchased more than 2,000 shares of Ford Motor Co. through the employee payroll investment plan before I retired. Should I hold or sell?

Answer - There's still a Ford in your future.

Hold and consider buying more shares of Ford Motor Co. (around $58, NYSE) because automobile stocks are one of the best ways to play America's new international competitiveness, advised Ronald Glantz, senior vice president with Dean Witter Reynolds.

After decades of battling low-price imports, Detroit carmakers have stemmed the tide of foreign sales here and are increasing exports worldwide. They've benefited from strength of the Japanese yen and improvements in their own quality and productivity.

"Ford has the best balance sheet of the Big Three, and is generating cash at an unbelievable rate," Glantz said. "I think the company will increase its dividend, and its stock price could reach $79 by the end of next year."