Our Take on 2001's Best-Performing Stocks
Many are selling above our fair value estimates.
In a tumultuous year for stocks, most equity investors had to cope with losses, rather than gains. But for those fortunate enough to own shares in a handful of security-software companies, online travel firms, and online florists, it was definitely a year to remember. (In fact, two stocks from this group, Office Depot (ODP) and Service Corp. International (SRV), were holdings in our Tortoise Portfolio, a model portfolio that appears in Morningstar StockInvestor.)
Now that these stocks have already had huge runups, we think more caution is warranted. Although companies such as McAffee.com and 1-800-Flowers.com (FLWS) still have good prospects for growth, price risk is becoming much more of an issue; as the table below illustrates, many of these stocks are now selling above Morningstar's estimate of their fair value and therefore receive below-average star ratings. To find out more about our take on 2001's standouts, Premium Members can click on the Analyst Report links below.
|Top-Performing Stocks in 2001*|
| Morningstar |
| Morningstar |
( $ )
|McAfee.com has good growth potential, but the stock is too pricey. Read the full Analyst Report.||578.2||1||17|
|Network Associates is clearly in better hands under new CEO George Samenuk. Read the full Analyst Report.||517.2||1||17|
|FTD.com has combined an efficient business model with good management decisions. Read the full Analyst Report.||409.1||3||7|
|We think Priceline.com (PCLN) is one of the better choices among travel stocks. Read the full Analyst Report.||343.3||3||6|
|We'd wait for Expedia's (EXPE) price to settle down before buying. Read the full Analyst Report.||324.7||1||30|
|1-800-Flowers.com (FLWS) is one of the few e-commerce stocks worth watching. Read the full Analyst Report.||278.2||1||12|
|Chico's FAS (CHS) still looks great to us. Read the full Analyst Report.||185.3||3||43|
|Service Corp. International's (SRV) problems look grave. Read the full Analyst Report.||185.1||3||4|
|We think Office Depot (ODP) looks fairly valued. Read the full Analyst Report.||160.2||3||17|
|* Table includes the top-performing stocks in Morningstar's coverage universe. |
Data is through 12-31-01.
Morningstar Analysts does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.