Our Take on 2001's Best-Performing Stocks
Many are selling above our fair value estimates.
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* | |||
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2001 Return | Morningstar Rating | Morningstar Fair Value ( $ ) | |
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McAfee.com has good growth potential, but the stock is too pricey. Read the full Analyst Report. | 578.2 | 1 | 17 |
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Network Associates is clearly in better hands under new CEO George Samenuk. Read the full Analyst Report. | 517.2 | 1 | 17 |
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FTD.com has combined an efficient business model with good management decisions. Read the full Analyst Report. | 409.1 | 3 | 7 |
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We think Priceline.com (PCLN) is one of the better choices among travel stocks. Read the full Analyst Report. | 343.3 | 3 | 6 |
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We'd wait for Expedia's (EXPE) price to settle down before buying. Read the full Analyst Report. | 324.7 | 1 | 30 |
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NVIDIA (NVDA) shares look ridiculously overvalued. Read the full Analyst Report. | 308.6 | 1 | 36 |
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1-800-Flowers.com (FLWS) is one of the few e-commerce stocks worth watching. Read the full Analyst Report. | 278.2 | 1 | 12 |
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Chico's FAS (CHS) still looks great to us. Read the full Analyst Report. | 185.3 | 3 | 43 |
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Service Corp. International's (SRV) problems look grave. Read the full Analyst Report. | 185.1 | 3 | 4 |
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We think Office Depot (ODP) looks fairly valued. Read the full Analyst Report. | 160.2 | 3 | 17 |
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* 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.
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