The Dapper Dozen

12/19/2016


Regular readers know we select stocks based on their individual merits, not their sector or industry classification.

That said, at times we do gravitate toward some industries more than others, mostly favoring groups with solid fundamentals. The chart at right presents the dozen industry groups with the highest average Quadrix Overall scores. Those industries represent just 8% of the 157 groups in our coverage universe but account for nearly 27% of the stocks on our buy lists.

We don't jump into the stock-selection process thinking, "We need a homebuilder on the Buy List." But the 28 homebuilders in our Quadrix research universe average Overall scores of 79, which means they're likely to bubble to the top. The fact that we recommend two airlines says less about our desire to overweight the industry than about our ability to find airlines with investment appeal.

The dozen industry groups presented in the chart represent some of the richest hunting grounds for new Buys. Subscribers who follow our recommendations shouldn't be surprised if we bag some new picks from these groups, while those who like to perform their own research should devote extra time to these industries.

TOP STOCKS IN THE BEST INDUSTRIES
Out of the 12 industry groups with the highest average Overall score, reflecting superior industry fundamentals, we recommend the nine stocks below.
Company (Price; Ticker)
Div.
($)
Yield
(%)
Stock-
Market
Value
($Bil.)
Quadrix
Overall
Score
Industry
Rank
Alaska Air Group
($86; ALK)
1.10
1.3
10.7
97
Airlines
Buy *
Centene ($56; CNC)
0.00
0.0
9.8
91
Managed
care
Focus Buy *
Citizens Financial
($35;  CFG)
0.48
1.4
18.0
97
Regional
banks
L-T Buy
D.R. Horton ($28; DHI)
0.40
1.4
10.7
86
Homebuilding
Focus Buy *
J.P. Morgan Chase
($85; JPM)
1.92
2.3
307.5
88
Divers.
banks
L-T Buy
Lear ($134; LEA)
1.20
0.9
9.7
99
Auto parts
Focus Buy *
Mohawk Indust.
($200; MHK)
0.00
0.0
14.9
94
Home
furnish.
Focus Buy *
Southwest Airlines
($49; LUV)
0.40
0.8
30.8
91
Airlines
Focus Buy *
Zions Bancorp
($42;  ZION)
0.32
0.8
8.6
92
Regional
banks
Focus Buy *
* Also a Long-Term Buy.   Note: Quadrix scores are percentile ranks, with 100 the best.

Current Hotline

Stock Spotlight

Individual Stock Reports

ISRs make stock research easy!

Perhaps the most valuable two page reports available anywhere.

All the data you would normally have to plow through years of 10-K filings, earnings reports, and reams of market data to assemble — yours all in one concise report.

ISRs contain our proprietary Quadrix scores — find out how we rate all the stocks in the S&P 500.

Visit us at individualstockreports.com