Shares That Start Strong
By Numer de Guia, CFA
This week, we're going to try something a little different and take a long-term view of a short-term phenomenon. To wit: Which stocks have done the best in the first quarter of the calendar year -- in each year of a multiyear period? While there are no guarantees, identifying attractive stocks that have shown seasonal strength -- even in down years -- can be useful in deciding which shares to buy as 2005 gets underway.
We started by looking for those companies that have posted a positive total return -- capital appreciation plus dividends -- in the first quarter of every calendar year since 2000. To add to their appeal, each stock on the list has to pay a quarterly dividend.
Furthermore, those names have to jump through one final hoop. To make sure they show good potential for gains beyond the first quarter, each has to carry an S&P investment ranking of 4 STARS (buy) or 5 STARS (strong buy). S&P equity analysts expect stocks with those designations to outperform the overall market in the next 6 to 12 months.
|Company||Ticker||S&P STARS Rank|
|American Capital Strategies||ACAS||4|
|Glimcher Realty Trust||GRT||4|
|Sovran Self Storage||SSS||4|
|Developers Diversified Realty||DDR||4|
|CBL & Associates||CBL||5|
|Acadia Realty Trust||AKR||4|
|Simon Property Group||SPG||5|
|Pan Pacific Retail Properties||PNP||4|
|Bank of Hawaii||BOH||4|
|McCormick & Co.||MKC||4|
De Guia is an analyst for Standard & Poor's Portfolio Advisors