Stocks That Bucked the Bear
S&P culls 19 buy-rated companies whose shares have gained in 60% or more of the 29 months since the last market peak
Has it really been just two-and-a-half years since the Standard & Poor's 500-stock index hit its all time high of 1527.46? (It happened on Mar. 24, 2000, to be exact.) For many investors, it must seem like a lifetime ago. One tech bubble, one recession, numerous corporate scandals, and one ferocious bear market later, the index is languishing over 40% lower.
And looking at the S&P 500's performance on a month-by-month basis shows that the weakness has been pretty consistent over that period. In the 29 months that followed the index' peak (through the end of August, 2002), it has appreciated in only 11 months (based on month-end prices), or just 37.9% of the time.
A LITTLE BONUS. Not every stock goes down in lockstep with the index, of course. And in this week's screen, we looked for issues that have managed to buck the trend. We searched for companies that have had monthly price appreciation in 60% or more of the 29 months since the S&P 500's peak (based on month-end prices). That's a pretty good batting average.
Past performance tells only part of the story. We sifted through that list for stocks with good potential for future gains by screening for issues with S&P's top investment ranking, 5 STARS (buy). Stocks with that designation are expected by S&P analysts to outperform the overall market in the next 6 to 12 months. And we used one final filter to add a little something extra: Each stock had to pay a regular dividend.
These 19 issues emerged:
• Alberto-Culver (ACV )
• Ambac Financial (ABK )
• Amsouth Bancorporation (ACO )
• Bank Of America (BAC )
• Banknorth Group (BKNG )
• Block (H&R) (HRB )
• Chelsea Property (CPG )
• Commerce Bancorp (CBH )
• FedEx (FDX )
• Fortune Brands (FO )
• Hospitality Properties Trust (HPT )
• JLG Industries (JLG )
• Lennar (LEN )
• Longs Drug Stores (LDG )
• National Commerce Financial (NCF )
• PepsiCo (PEP )
• Smucker (J.M.) (SJM )
• Union Pacific (UNP )
• UnitedHealth Group (UNH )
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