Analyst Rankings: Taking a Look at Application Software

This week, in our focus on the winning analysts in each industry category from our Analyst Rankings -- Equity 2000 survey, we profile the top analysts tracking the application software industry. (For our last focus, on information technology consulting and services, click here.) Next week, we will digress from our planned tech schedule to look at the top-ranked analysts in the tobacco industry, which has been prominent in the news lately.

The Winners

By name By category By firm Best stock pickers Best firms

Application software stocks have taken a major tumble lately. However, these companies, which develop and produce software designed for specialized applications for the business or consumer market, are benefiting from several important trends. All three of our top-ranked applications software analysts are bullish. They're particularly optimistic about business-to-business names, noting that companies are willing to pay for applications that will improve their relationships with partners and customers and direct their flows of goods more efficiently. Though their favorite stocks vary, Ariba(ARBA Quote) and Oracle(ORCL Quote) show up on more than one list.

Application software analysts warn that we are at the beginning of a long cycle of growth in the sector. They expect consolidation -- and casualties -- along the way. Their best advice: Stick with the market leaders.

Click here to see a calendar of the categories we will feature in the weeks ahead.

Click here to see the sector spotlight on information technology consulting and services.

Click here to see the sector spotlight on Internet software and services.

Click here to see the stories in this series that have already appeared on our site.

Application Software

	1st Place
	Chuck Phillips Morgan Stanley Dean Witter (See Report Card)

	2nd Place (tie)
	George Gilbert Credit Suisse First Boston (See Report Card)

	2nd Place (tie)
	Rick Sherlund Goldman Sachs (See Report Card)

	4th Place
	Jim Moore Deutsche Banc Alex. Brown

	5th Place
	Richard Scocozza Bear Stearns

Rate Their Stock Picks:

Which stock do you like best? Phillips*: Ariba Gilbert: E.piphany Sherlund: Amdocs Ltd.
* Gilbert and Sherlund each gave us their top stock pick. Phillips gave us a list of four picks, from which we chose Ariba.