Among the month's best performers in the portfolio of S&P analysts' top picks for the year: Lear, Apache, and Sybase
By Ken Shea
The -- representing S&P analysts' top picks for the year -- got off to a good relative start for the year vs. its benchmark, the S&P 500 index, in January. The portfolio declined 2.0% on the month, vs. the index's loss of 2.8%.
The portfolio's biggest gainers in January were Lear (+21%), Apache (+10%), and Sybase (+7%). The worst PowerPicks performers on the month included Kraft (-18%), Synopsys (-16%), and Overture (-15%).
During the 2003 portfolio's initial month, 22 stocks beat the "500", while 18 did not.
About the S&P PowerPicks 2003 Portfolio
The portfolio represents the collective "best ideas" of the Standard & Poor's equity research staff.
Each of the 35 industry analysts on S&P's equity research staff has chosen one of the stocks they follow as the best-positioned for superior growth. The S&P PowerPicks 2002 Portfolio is diversified across all the 10 S&P economic sectors comprising the S&P 500 index.
The portfolio is a "frozen" one, meaning that it will undergo no changes throughout the entire year. The objective of the portfolio is to exceed the total return (capital appreciation plus dividends paid) generated by the S&P 500 during the year.
Market Cap $bil.
Favorable shift in product mix, low valuation
New CEO, better vendor relations
Prospects for improved ad market
Exceptional growth characteristics
Market share gains, margin improvements
Toys "R" Us
Free cash flow and p-e should grow
Continued market share gains, strong growth
Defensive appeal, superior prospects
Positive sales trend continue
Shares attractively valued
Natural-gas activity rising
EPS growth to 2005 beats peers
Stronger earnings growth
Shares trading at a big discount to historical valuation
Strong franchise, undervalued, takeover candidate
Strong free cash flow and profit margins
National Commerce Financial
Strong market demographics
Undervalued vs. peers, with less risk
Explosive growth prospects
Strong performance expected from all business segments