Boeing Dreamliners lined up at a Seattle airport. c. Elaine Thompson, AP photo

Compiled from StockScouter ratings by Verus Analytics

Something special in the air? You might think so, judging from Stockscouter's latest list of 10 stocks to watch this week. Two airlines and an airplane manufacturer make the lineup.

Delta Air Lines (DAL) gets a perfect "10" rating from StockScouter, meaning it is expected to significantly outperform the market in the next six months. The airline announced on Feb. 14 that employees earned record profit-sharing payouts due to a year of strong results. Last month, it reported better-than-expected earnings due to lower fuel costs and higher ticker prices, and issued a rosy outlook for 2014.

Read the full Scouter report on Delta here.

Southwest Airlines (LUV) also carries a "10" from StockScouter. Reuters reported this week that Southwest is looking to add service in areas where other carriers have been cutting back. And in January, Southwest reported record profits for the fourth quarter and the full year of 2013.

Read the full Scouter report on Southwest here.

Boeing (BA) made the list with an "8" rating, and is also expected to outperform. The manufacturer's stock had a huge year in 2013 despite production and labor issues, and even after a pullback early this year it's up more than 70% over the past 12 months. Analysts that watch the stock overwhelmingly rate it a buy.

It did get a relatively low score from Scouter for valuation. Read the full Scouter report on Boeing here.

StockScouter Top 10 for Feb. 14

Company

Sector

Dividend yield

Forward P/E

Scouter score

Delta Air Lines (DAL)

Airlines

0.8%

10.8

10

Southwest Airlines (LUV)

Airlines

0.7%

12.2

10

Medtronic (MDT)

Medical devices

2.0%13.39

Dow Chemical (DOW) 

Chemicals3.2%12.89

Freeport-McMoran Copper & Gold (FCX)

Mining3.8%11.89

PDL Biopharma (PDLI)

Biotech

7.3%

2.9

 9

Boeing (BA)

Aerospace

2.3%

16.8

8

Caterpillar (CAT)

Farm & construction equipment

2.5%

12.6

8

Conoco-Phillips (COP)

Oil & gas

2.8%

9.7

8

Merck (MRK)

Drug manufacturing

1.8%

14.5

8

StockScouter beats the market

We think the StockScouter rating system developed by Verus Analytics for MSN Money is one of the best tooks you can use when you're trying to decide where to invest.

StockScouter looks for stocks whose business fundamentals, price behavior, valuation and stock-ownership characteristics appear to predict a rising price in the future, based on how those factors have influenced stock prices in the past.

The system assigns each stock an expected six-month return and balances that return against the stock's expected volatility.

Scouter rates stocks on a scale of 1 to 10, and ratings can change daily. Ratings and data in the chart above were current as of this article's publication date.

In addition to the daily top 10 list described above, StockScouter is used by investment research firm Verus Analytics (previously known as the quantitative business unit of Gradient Analytics) to generate a monthly benchmark portfolio of stocks that, refreshed monthly, has outperformed the market since its inception in August 2001.

An investor who began in 2001 by investing in each of the benchmark portfolio's top 10 stocks at the start of the month, selling them at the end of the month and then starting fresh with a new group of 10 stocks, would have generated returns, before trading costs and taxes, of 1,039 percent through Dec. 31, 2013.

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Writer Jon Markman, at the time a columnist for MSN Money, collaborated with company researchers on the tool.

Markman suggested rolling over the top 10 stocks every six months to hold down trading costs, a strategy that might be a better fit for most investors; that would yield different results, which would vary based on your starting point.

Performance through Jan. 31, 2014

Full 50 position portfolio    

Index

1 month

3 month

6 month

1 year

Since
inception

Average
annual
return

Portfolio

-3.1%

2.2%

6.9%

18.9%

557.7%

16.8%

Nasdaq

-1.7%

4.7%

13.2%

30.6%

102.5%

7.8%

S&P 500

-3.6%

1.5%

5.8%

19.0%

47.2%

4.3%

DJIA

-5.3%

1.0%

1.3%

13.3%

49.2%

4.3%

Top 10 portfolio

Index

1 month

3 month

6 month

1 year

Since
inception

Average
annual return

Portfolio

5.8%

2.4%

1.%

5.4%

973.0%

20.7%

Nasdaq

-1.7%

4.7%

13.2%

30.6%

102.5%

7.8%

S&P 500

-3.6%

1.5%

5.8%

19.0%

47.2%

4.3%

DJIA

-5.3%

1.0%

1.3%

13.3%

49.2%

4.3%

Inception: August 2001