Stocks with Upward Momentum in a Turbulent Market

Which issues have shown strength even as the major indexes tumble? S&P's newest screen turned up 22 top-ranked examples

By Arnie Kaufman

Many investors are now scouring the new low list for stocks that may be oversold in the aftermath of sector rotation, tax selling and window dressing. Another approach, one that many professionals favor, is to buy issues that have been strong recently. The factors that have pushed a stock upward in a generally sloppy market, it is reasoned, will propel it forward once the overall investment climate improves.

We searched our database for stocks that are selling within 10% of their 52-week highs and that have been experiencing increasing relative strength over this period. The issues have done at least three times as well as the S&P 500 over the past 52 weeks, five times as well as the S&P 500 over the past 13 weeks and seven times as well as the "500" over the past four weeks. In addition, all of the stocks must be ranked five-Stars, indicating S&P analysts expect them to outperform the market over the next 52 weeks.

The following issues emerged:

Allstate (ALL )

Ambac Financial (ABK )

American General (AGC )

BJ's Wholesale (BJ )

Bank of New York (BK )

CVS Corp. (CVS )

Cablevision (CVC )

Clayton Homes (CMH )

Constellation Brands (STZ )

Eaton Vance (EV )


Kinder Morgan (KMI )

Lincare Holdings (LNCR )

National-Oilwell (NOI )

PNC Financial (PNC )

Pfizer (PFE )

Philip Morris (MO )

Renal Care Grp. (RCGI )

Scholastic Corp. (SCHL )

Seitel Inc. (SEI )

TXU Corp. (TXU )

Wellpoint Health (WLP )

Kaufman is editor of Standard & Poor's weekly investing newsletter, The Outlook

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