By Michael Kaye After a remarkably steep -- and quick -- decline, the stock market hit its low point on October 9, 2002. The subsequent sharp recovery has been led by the two sectors that had lost the most favor with investors: information technology and telecommunication services. Both areas have been the best performing groups -- as measured by S&P industry subindexes -- since the Oct. 9 lows, gaining nearly 40% each.
This upward move may be nothing more than a case of investors piling into the most heavily beaten-down sectors at the first whiff of a market upturn. But S&P analysts still think attractive opportunities are available within those two groups. In this week's screen, we've listed the stocks in the info-tech and telecom services group ranked 5 STARS (buy) by our analysts -- meaning that they're expected to outperform the overall market over the next 6 to 12 months.
Affiliated Computer Services (ACS)
Analog Devices (ADI)
Cisco Systems (CSCO)
Electronic Arts (ERTS)
Fair Isaac (FIC)
Microchip Technology (MCHP)
Overture Services (OVER)
WebEx Communications (WEBX) Kaye is a portfolio services analyst for Standard & Poor's