|
Published: June 21, 2010
Stock analysts have taken their fair share
of criticism in recent years.
Some so-called experts are consistently off-the-mark and issue
earnings projections that seem to be little more than
guesstimates. Others simply follow the herd and are reluctant to
raise or lower their outlook until a day or two after the
company itself provides its latest bearing. Anyone can predict
yesterday's weather.
And then there's the inherent conflict of interest that arises
whenever an analyst covers a company that also happens to be a
key investment banking customer. Brokerage firms seldom
jeopardize those relationships by printing bearish comments,
which is why you see far more "buys" than "sells".
But some analysts are razor-sharp observers with impressive
credentials and a granular understanding of the specific sectors
they have been assigned. These analysts' forecasts wield the
power to move the market and send stocks soaring or crashing.
Many companies claim to have the most astute stock pickers, but
in many respects Raymond James is a cut above the rest. The firm
boasts a talented team of 90 senior analysts and research
associates, which are in turn supported by economists, equity
strategists and other experts.
Raymond James has racked up some impressive accolades. In fact,
19 different RJ analysts have taken home the prestigious Wall
Street Journal "Best on the Street" award. Jim Parker, who
covers the airline industry, has won seven first place trophies
all by himself, for example. And last year, 12 of his colleagues
were named to the Forbes "Blue Chip Analyst" survey for superior
estimate accuracy and stock selection.
Such recognition is nice of course, but the
numbers speak for themselves. Last year, Raymond James' Best
Picks list delivered an impressive average return of +54%,
versus +33% for the S&P 500. That outperformance is nothing new
-- the firm has topped the market 13 of the past 14 years.
Typically, these recommendations are disseminated to the firm's
high net-worth clients. But you don't need a million dollar
account to have access to Raymond James' all-star analysts.
Thanks to the Claymore/Raymond James SB-1 Equity (NYSE: RYJ)
exchange-traded fund (ETF), you can get the inside scoop and
own a cherry-picked basket of the firm's best ideas, for a
reasonable charge of just 0.75%.
The fund tracks the Raymond James SB-1 Equity Index, an
equal-weighted
benchmark solely reserved for the select few stocks deemed
"Strong Buy" according to the firm's analysts. These standouts
are expected to hit their price targets within six to 12 months.
The 120-stock portfolio spans the market-cap spectrum -- roughly
one-quarter is invested in large-caps like Home Depot (NYSE:
HD) and Chevron (NYSE: CVX). From a sector
standpoint, the bulk of the fund's assets are sunk in
technology, financial, energy and consumer discretionary stocks.
These are the firm's analytical sweet spots, so it's not
surprising to see the fund ante up in these areas.
Based on Raymond James' exemplary track record, you can probably
guess that shareholders have done well. And they have -- RYJ has
climbed more than +30% in the past 12 months, outrunning the
S&P's +18% gain. The fund has also outrun 99% of its peer group
during the past three years.
Action to Take --> I view
RYJ as a solid core domestic stock fund and will be watching it
as a potential portfolio candidate for my premium newsletter,
The ETF Authority.
The fund is a direct bet on the stock-picking ability of Raymond
James' seasoned analysts. That bet has paid off time and again
during the past decade, and there's no reason to think it won't
continue doing so. You don't beat the S&P 13 out of 14 years by
accident.
-- Nathan Slaughter
Editor
StreetAuthority Market Advisor
The ETF
Authority |
