Second-Half Stars

This morning brought a mixed bag of economic reports that supplied fodder for bulls and bears alike. The unemployment report was flat and the headline durable goods number wasn't awful, but digging a bit deeper showed that the internals aren't pretty. The data shows us an economy that may be better, but still not good. There is fear of further declines in the economy and in the stock market. I won't make any predictions (as I have a flawed macro crystal ball), but I am taking steps to be ready if there's a larger inventory-creation event.

So, I screened stocks with the highest 12-month performance rankings from Standard and Poor's that are also trading below book value. The ensuing list would make a solid portfolio all its own, regardless of market performance in the second half. These stocks are cheap enough to be long-term winners, and one of the best and oldest research services on Wall Street believes they will outperform in the near term as fundamentals improve....369 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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