6/13/2014 8:15 PM ET
Chip makers lead 10 stocks to watch
StockScouter's latest list of 10 recommended stocks is dominated by semiconductor manufacturers.
Compiled from StockScouter ratings by Verus Analytics
Apple (AAPL), fresh off a 7-for-1 stock split, tops StockScouter’s list of 10 stocks to watch for the second straight week. But while retail investors are no doubt excited to see the iPhone and iPad maker's stock trade for under $100 for the first time in years, what goes into Apple's popular devices might be just as big an investing story right now.
No fewer than five chip makers also crack this week's top 10, led by Taiwan Semiconductor Manufacturing (TSM). Intel (INTC), Broadcom (BRCM), Marvell Technology (MRVL) and Qualcomm (QCOM) also make the cut.
Apple and TSM both get a ‘10’ from the StockScouter rating system on MSN Money, the highest score possible. Based on StockScouter’s analysis, shares of Apple and TSM are both expected to significantly outperform the market over the next six months with less than average risk.
- Also on MSN Money: 5 cheap stocks ready to take off
StockScouter Top 10 for June 13
Activsion Blizzard (ATVI)
Taiwan Semiconductor Manufacturing (TSM)
AmBev SA (ABEV)
|Brewers and beverages||3.3%||17.8||9|
Brocade Communications Systems (BRCD)
Juniper Networks (JNPR)
Marvell Technology Group (MRVL)
StockScouter beats the market
We think the StockScouter rating system developed by Verus Analytics for MSN Money is one of the best tools 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 1,057 percent through May 31, 2014.
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 May 31, 2014
Full 50 position portfolio
Top 10 portfolio
Inception: August 2001
VIDEO ON MSN MONEY
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
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