Unusual stock picks from a quantitative expert
Sabrient Systems has a strong track record, which is why its annual 'Baker's Dozen' list is getting attention.
Stuff you and I could never fathom.
So when one of the more respected quantitative investment shops releases its stock picks, people pay attention. And when that investment shop becomes known for beating the market year after year with those picks -- well, a lot of people pay attention.
And that's how Sabrient Systems -- and its annual picks -- got a nice writeup Friday in The Wall Street Journal. The company uses its algorithms and technological tools to pull 13 picks out of thousands of stocks.
Over the past three years, Sabrient's "Baker's Dozen" stock picks have returned 36%, 21% and 7.3% -- handily beating the Standard & Poor's 500 index ($INX).
Sabrient tells the Journal that it looked for stable, affordable stocks with the most potential for growth. "We're looking for stocks that won't vary wildly after they report earnings and will generate steady returns for one year," the chief market strategist said.
The list is remarkable because it doesn't have many well-known names. You won't see Apple (AAPL) there or any of the Dow Jones industrials.
Here's the list:
Seagate Technology (STX), which makes disk drives
Western Refining (WNR), a crude-oil refiner
Ocwen Financial (OCN), a mortgage loan servicer
Watson Pharmaceuticals (WPI), which sells generic Lipitor and other generic drugs
United Therapeutics (UTHR), which makes blood pressure medication Remodulin
Cloud Peak Energy (CLD), a Wyoming coal miner
Globe Specialty Metals (GSM), a silicon alloy maker
Dana Holding (DAN), an auto parts maker
AGCO Corp. (AGCO), an agricultural equipment maker
DXP Enterprises (DXPE), which sells industrial equipment
Kronos Worldwide (KRO), which sells pigments for coatings and plastics
United Rentals (URI), which rents equipment
Ameristar Casinos (ASCA), which owns a number of casinos throughout the country
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.
Investors are anxious to see if hiring can maintain its strong pace in the second half of the year.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.