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Our Picks

Watch Lists by Sector

Track great companies in each Morningstar sector.

If you've used Morningstar's Portfolio X-Ray or Quicktake Reports, you know that we break portfolios down into 10 economic sectors. That allows us to answer questions like: Is this fund manager overweighting technology stocks? Is your portfolio tilted toward industrial cyclical stocks? Or, does your portfolio lack exposure to a major economic sector like health or technology?

For those of you who need to plug holes in a portfolio, we've created some lists of stocks in each sector that are worth tracking in Portfolio Manager. Below, you'll see watch lists of stocks in each sector that meet two criteria: 1) we assign star ratings to them, and 2) we like the companies. Many of these companies boast strong competitive positions--or economic moats--that put them a notch above the competition. In fact, many are good enough to make the "Bellwether 50" that appears in Morningstar StockInvestor.

Right now, many of these stocks receive low star ratings, but owing to the strength of the companies, they're the kind of stocks we'd love to buy at the right price. That makes them perfect candidates for watch lists.

First, the Mechanics
To monitor the stocks on any of the sector lists I've broken out below, simply:

  • Click on one of the links provided. If you haven't already registered on, you'll be asked to do so. (Don't worry, it's free.)
  • Name your watch list.
  • When the holdings pop up, click "Save Portfolio." (No need to worry about the number of shares and so on--unless you want to.)

The whole process should take about 30 seconds.

Consumer Durables: Create This Watch List
Stocks included: Harley-Davidson (HDI), Sony (SNE), and Liz Claiborne (LIZ).

Consumer Staples: Create This Watch List
Stocks included: Avon Products (AVP), Colgate-Palmolive (CL), Gillette (G), William Wrigley (WWY), and Procter & Gamble (PG).

Energy: Create This Watch List
Stocks included: ExxonMobil (XOM), Royal Dutch Petroleum (RD), and Schlumberger (SLB).

Financials: Create This Watch List
Stocks included: Citigroup (C), Berkshire Hathaway (BRK.B), White Mountains (WTM), and AIG (AIG).

Health: Create This Watch List
Stocks included: Tenet Healthcare (THC), HCA-The Healthcare Company  (HCA), UnitedHealth Group (UNH), Express Scripts (ESRX), Cardinal Health (CAH), and Boston Scientific (BSX).

Industrial Cyclicals: Create This Watch List
Stocks included: Alcoa (AA), Caterpillar (CAT), DuPont De Nemours E.I. (DD), Emerson Electric (EMR), General Electric (GE), Kimberly-Clark (KMB), and Nucor (NUE).

Retail: Create This Watch List
Stocks included: Abercrombie & Fitch (ANF), Costco (COST), Walgreen (WAG), Wal-Mart (WMT), Jo-Ann Stores (JAS.A), CDW Computer Centers (CDWC).

Services: Create This Watch List
Stocks included: Automatic Data Processing (ADP), eBay (EBAY), FedEx (FDX), Learning Tree  (LTRE), McDonald's (MCD), McGraw-Hill (MHP), Paychex (PAYX), SBC Communications (SBC), and Southwest Airlines (LUV).

Technology: Create This Watch List
Stocks included: Boston Scientific (BSX), AOL Time Warner (AOL), Dell Computer (DELL), First Data (FDC), Microsoft (MSFT), IMS Health (RX), Intel (INTC), and Nokia (NOK).

Utilities: Create This Watch List
Stocks included: Duke Energy (DUK) and Southern (SO).