Stocks to Defy the January Barometer
By Michael Kaye
By now, most investors have probably heard of the January Barometer. That market predictor says if the S&P 500-stock index rises in January, the index usually goes on to post a full-year gain. Our colleague Sam Stovall has written about this effect as it applies to S&P sectors (see BW Online, 02/03/03, "January's Glum Precedent for the Year"). We thought we'd take it one step deeper, to zero in on individual stocks.
So we set out to look for quality issues that posted a strong performance in January. We screened our database for stocks that had double-digit returns in January despite the S&P 500's decline of 2.75%. Then we added one more criterion. From that list, we looked for those issues ranked 4 STARS (accumulate) or 5 STARS (buy) by Standard & Poor's analysts, meaning they're expected to outperform the overall market over the next 6 to 12 months.
These 21 names emerged:
Kaye is a portfolio services analyst for Standard & Poor's