25.Target

Target

MOST ADMIRED

Top 50 rank: 25
Rank in General Merchandisers: 1
(Previous rank: 2)
Overall score: 7.20
Ticker: TGT

24.Wal-Mart Stores

Wal-Mart Stores

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MOST ADMIRED

Top 50 rank: 24
Rank in General Merchandisers: 3
(Previous rank: 1)
Overall score: 6.92
Ticker: WMT

23.Singapore Airlines

Singapore Airlines

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MOST ADMIRED

Top 50 rank: 23
Rank in Airlines: 2
(Previous rank: 2)
Overall score: 6.28

22.J.P. Morgan Chase

J.P. Morgan Chase

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MOST ADMIRED

Top 50 rank: 22
Rank in Megabanks: 1
(Previous rank: 2)
Overall score: 7.23
Ticker: JPM

21.Nordstrom

Nordstrom

 

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MOST ADMIRED

Top 50 rank: 21
Rank in General Merchandisers: 2
(Previous rank: 3)
Overall score: 7.15
Ticker: JWN

Why it's admired:

Nordstrom's revenues of $10.5 billion for the company’s 2011 fiscal year were an all-time record for the company and marked the second consecutive year of 13% annual growth. Early last year, Nordstrom acquired the online private sales site HauteLook for $180 million in stock. Then in August, the chain opened Treasure & Bond in New York City, a boutique squarely aimed at the hip, young SoHo set. Up next: plans to open 15 more Nordstrom Rack locations and one more Nordstrom store this year. 

20.Costco Wholesale

Costco Wholesale

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MOST ADMIRED

Top 50 rank: 20
Rank in Specialty Retailers: Diversified: 1
(Previous rank: 1)
Overall score: 6.95
Ticker: COST

Why it's admired:

The warehouse retailer is already off to a strong start this year despite a slight raise in membership costs last holiday season. The company reported January sales were up to $40.18 billion, an 11% increase from the same time last year. Costco has even managed to expand its operations -- adding seven new warehouses in the last months of 2011.

19.Caterpillar

Caterpillar

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MOST ADMIRED

Top 50 rank: 19
Rank in Industrial and Farm Equipment: 1
(Previous rank: 2)
Overall score: 7.89
Ticker: CAT

Why it's admired:

Good news for Caterpillar means good news for the economy, since increased sales mean increased manufacturing, and generally, more jobs. And Caterpillar brought in record sales in 2011, the largest year-over-year percentage increase since 1947. CEO Doug Oberhelman sharpened the company's operations in response to financial pressure during the recession, and got the manufacturer back on its feet. The fruits of the company's labor should continue to pay off for shareholders. In a video about the company's performance in 2011, Caterpillar CFO Ed Rapp says, "We expect 2012 to be our best year in history for sales and revenue and profit."

18.3M

3M

MOST ADMIRED

Top 50 rank: 18
Rank in Scientific, Photographic and Control Equipment: N.A.
(Previous rank: N.A.)
Overall score: N.A.
Ticker: MMM

Why it's admired:

The purveyor of ubiquitous office supplies like Scotch Tape and Post-Its reported that annual revenues were up 11% to $29.6 billion thanks to growth in four of the company’s six business segments, from Industrial and Transportation -- tapes, abrasives, filtration products, among others -- to Safety, Security, and Protection Services, like cleaning products for businesses, with the largest sales growth in Latin America and Canada.

The company also increased spending to encourage future growth, investing a large portion of $1.4 billion to address supply constraints in businesses including renewable energy.

17.Microsoft

Microsoft

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MOST ADMIRED

Top 50 rank: 17
Rank in Computer Software: 5
(Previous rank: 3)
Overall score: 6.48
Ticker: MSFT

Why it's admired:

The Redmond, Washington-based giant advanced on several fronts. Early last year, it struck a reported $1 billion-plus deal with Nokia; the Finnish handset maker will promote and develop phones using Windows Phone as the primary operating system. Microsoft also bought popular Internet phone company Skype for $8.5 billion, its largest purchase ever. And with the launch of services like Office 365, Windows Intune, and Dynamics CRM Online 2011, Microsoft pushed even more aggressively into the cloud.

16.American Express

American Express

MOST ADMIRED

Top 50 rank: 16
Rank in Consumer Credit Card and Related Services: 2
(Previous rank: 1)
Overall score: 7.38
Ticker: AXP

Why it's admired:

Americans are using plastic again, which means things are looking up for American Express. The company's net income in the fourth quarter increased 12% to $1.2 billion from the same period a year ago.

Much of that increase, the company said, came from cardmembers spending more. This February, the company reported that fewer customers defaulted in January than in the December -- another good sign. CEO Kenneth Chenault feels poised to face 2012. In the fourth quarter earnings report, he said, "A network based on service, relationships, data and market insights is a tremendous asset for a digital age when the boundaries between online and offline commerce are being quickly redefined."

15.General Electric

General Electric

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MOST ADMIRED

Top 50 rank: 15
Rank in Electronics: 1
(Previous rank: 1)
Overall score: 6.82
Ticker: GE

Why it's admired:

GE continues to struggle through the challenges that hit during the recession. During the fourth quarter of 2011, profit increased to 39 cents per-share, which beat analyst expectations.

The company is making strides towards tightening its financials, but still needs to push more products. Revenue in the fourth quarter of 2011 dropped 8% to $38 billion. On the other hand, the company's industrial order backlog grew to $200 billion, the largest backlog in GE history. CEO Jeff Immelt still holds tremendous clout as its leader, implementing his plan to slowly steer the giant corporation away from finance and back to manufacturing.

14.BMW

BMW

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MOST ADMIRED

Top 50 rank: 14
Rank in Motor Vehicles: 2
(Previous rank: 1)
Overall score: 7.12

Why it's admired:

The German car company showed strong sales in 2011 and has continued to show success in the first few months of this year. In particular, the company’s Mini Cooper line has shown great success with an increase of more than 21% in sales in the past year.

BMW says 2012 will be full of new models beginning with the BMW 3-series sedan. That will be the sixth generation of its venerated model.

13.Walt Disney

Walt Disney

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MOST ADMIRED

Top 50 rank: 13
Rank in Entertainment: 1
(Previous rank: 1)
Overall score: 8.14
Ticker: DIS

Why it's admired:

ESPN’s high advertising revenues from added sports programming and Bowl Championship Series games gave Disney an added boost to the company’s cable networks operating income -- up to $5.2 billion last year from $760 million in 2010.

But while the company’s cable networks, theme parks, and broadcasting ventures saw success, its studio entertainment revenues were not so lucky. Releases like The Prince of Persia, and Sorcerer’s Apprentice flopped in comparison to the prior-year titles like Toy Story 3 and Alice in Wonderland.

12.Johnson & Johnson

Johnson & Johnson

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MOST ADMIRED

Top 50 rank: 12
Rank in Pharmaceuticals: 5
(Previous rank: 3)
Overall score: 6.06
Ticker: JNJ

Why it's admired:

Major recalls have hung over the the health care products and pharmaceuticals maker. Its 2011 earnings report seems to tell a different story, however. Products like Stelar—a drug meant to treat plaque psoriasis—and inflammatory disease medication Remicade showed strong growth performance worldwide.

11.McDonald's

McDonald's

:

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MOST ADMIRED

Top 50 rank: 11
Rank in Food Services: 1
(Previous rank: 1)
Overall score: 8.27
Ticker: MCD

Why it's admired:

A rise in beef prices haven’t kept this admired company from bringing in a hefty profit. New menu items and long operating hours have helped this fast food restaurant beat out competitors like Burger King. The company showed a strong 4Q earnings report with a profit of $1.38 billion, up nearly 11% from a year earlier.

10.Southwest Airlines

Southwest Airlines

MOST ADMIRED

Top 50 rank: 10
Rank in Airlines: 3
(Previous rank: 3)
Overall score: 6.08
Ticker: LUV

Why it's admired:

Like most airlines, a key part of the business plan for Southwest is keeping fuel prices down. The recent spike in the cost of oil to above $100 caused Southwest to slightly raise the price on its flights, a move that many other carriers have copied. Southwest beat expectations for earnings in the fourth quarter, reported in January, and expanded its reach thanks to its purchase of AirTran in May.

Frankly, if any company has the chops to face a turbulent market, it is Southwest. Unlike several larger companies, it has tremendous brand strength as a reliable, low-cost carrier.

9.Procter & Gamble

Procter & Gamble

MOST ADMIRED

Top 50 rank: 9
Rank in Soaps and Cosmetics: 1
(Previous rank: 1)
Overall score: 8.10
Ticker: PG

Why it's admired:

Procter & Gamble has had to make major changes to adjust to a challenging consumer market. The world's largest consumer-products company is up against slow growth in developed markets.

To offset those problems, P&G will cut 1600 jobs, the company announced in January, which should save $240 million. P&G will also continue to focus on growing its businesses overseas, which account for 80% of the company's sales growth and 37% of its total sales. This year, P&G is also gearing up for the 2012 summer olympics with an accompanying marketing push at that it predicts will bring in $500 million in incremental sales.

8.Starbucks

Starbucks

MOST ADMIRED

Top 50 rank: 8
Rank in Food Services: 2
(Previous rank: 3)
Overall score: 7.85
Ticker: SBUX

Why it's admired:

Since returning to Starbucks in 2008, Fortune's 2011 Businessperson of the Year has restored the iconic company he founded and taken it to new heights, posting record revenue and profits. Howard Schultz distinguished himself in another way in 2011, taking steps to raise funds for job creation and to fight political dysfunction in Washington. The White House paid attention.

7.Berkshire Hathaway

Berkshire Hathaway

MOST ADMIRED

Top 50 rank: 7
Rank in Insurance: Property and Casualty: 1
(Previous rank: 1)
Overall score: 7.34
Ticker: BRKA

Why it's admired:

Berkshire Hathaway remains one of the most admired companies in the Fortune 500, due to the sage leadership of its CEO Warren Buffett. In a poll, Fortune readers voted Buffett the business person of the year for 2011. Buffett suggested that most likely happened because he's been outspoken about his opinion that America's wealthiest citizens should pay a greater percentage of their income in federal taxes than they currently do.

In this year's annual letter to shareholders, Buffett also outlined his thoughts on why investing in stocks still beats investing in gold and bonds. Berkshire has also begun to welcome some tech companies into the fold. Last November, Berkshire purchased shares in Intel, DirecTV and IBM.

6.FedEx

FedEx

 MOST ADMIRED
Top 50 rank: 6
Rank in Delivery: 2
(Previous rank: 2)
Overall score: 7.31
Ticker: FDX

Why it's admired:

While the global carrier faced some recession-related setbacks, it fared better this year. FedEx serves as a bellwether for the economy in general, and it seems as if people are shipping again.

In December 2011, FedEx reaffirmed its positive guidance for 2012. And in the first quarter of 2012, FedEx boosted its net income to $497 million, up 76% from the same period the previous year. The company's stock is also up 9% year-to-date. What's more, FedEx continues to combat one of the main challenges to its business, the cost of fuel, by adding more efficient aircraft to its fleet. The company plans to purchase 27 new 767-300F aircraft by 2018.

5.IBM

IBM

MOST ADMIRED

Top 50 rank: 5
Rank in Information Technology Services: 1
(Previous rank: 1)
Overall score: 7.79
Ticker: IBM

Why it's admired:

In 1911, Big Blue was born from the merger of three disparate-seeming businesses to become the Computing-Tabulating-Recording Company. Fast forward a century later, the company celebrated its 100th anniversary with record annual profit of $15.9 billion, a 7% year-over-year increase. Much of that came from healthy revenue growth in BRIC countries -- Brazil, Russia, India, and China -- business analytics, cloud services, and Smarter Planet, IBM’s ongoing campaign to solve real-world problems, from traffic congestion to water management.

4.Coca-Cola

Coca-Cola

MOST ADMIRED

Top 50 rank: 4
Rank in Beverages: 1
(Previous rank: 1)
Overall score: 6.69
Ticker: KO

Why it's admired:

The soda industry may be struggling, but Coke has managed to hold strong through the storm. The beverage giant leads the industry in market share despite sales of its original Coca-Cola brand having slowed in North America. (The Coke brand is growing globally.) The secret? Expanding the brand beyond the sugary sparkling beverages. Coke has seen a moderate growth in its still beverage brands, including Powerade and Gold Peak Tea.

3.Amazon.com

Amazon.com

MOST ADMIRED

Top 50 rank: 3
Rank in Internet Services and Retailing: 2
(Previous rank: 2)
Overall score: 7.45
Ticker: AMZN

Why it's admired:

Unlike many other large tech companies, Amazon is comfortable sacrificing profits in the short-term for long-term gains. That’s why, despite the fact that 2011 revenues climbed to $48 billion, net income dropped 55% to $631 million.

The company leveled much of its capital at expansion efforts, including plans to open 17 new fulfillment centers. Later in the year, Amazon unleashed the Kindle Fire, a tablet which by one estimate may have sold sold as many as 6 million units last holiday season.

2.Google

Google

MOST ADMIRED

Top 50 rank: 2
Rank in Internet Services and Retailing: 1
(Previous rank: 1)
Overall score: 7.74
Ticker: GOOG

Why it's admired:

For Google, 2011 proved a period of transition. Eric Schmidt passed the CEO reins onto co-founder Larry Page in April, who not long after essentially streamlined the company into six major product areas, including search, social, mobile, and ads.

Google made several acquisitions, spending $12.5 billion for Motorola Mobility and $125 million for Zagat, among others. Consumer-facing services like Gmail, YouTube, and Google Reader saw significant updates, and the company finally unveiled its social network, Google+. Android also continued to dominate. According to Andy Rubin, SVP of mobile, 700,000 Android devices are now activated every day.

1.Apple

Apple

MOST ADMIRED

Top 50 rank: 1
Rank in Computers: 1
(Previous rank: 1)
Overall score: 8.42
Ticker: AAPL

Why it's admired:

To say it was another big year for Apple would be a gross understatement. With the passing of Steve Jobs, questions swirled around the company’s future. But under new CEO Tim Cook’s guidance, Apple continues to prosper.

The company’s annual revenues climbed to $108 billion, led by an 81% increase in iPhone sales -- a jump that doesn’t factor in the runaway success of the iPhone 4S -- and a 334% spike in iPad sales, due in no small part to the revamped iPad 2. Increased sales across the board explain why shares soared 75% during the company’s fiscal year to $495.