This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Best-Performing S&P 500 Stocks of 2010

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

3. Cummins (CMI) makes diesel and natural-gas engines, electric-power-generation systems and engine components. Its products are used in industrial equipment and agricultural and construction machinery.

Cummins has benefited from government-infrastructure spending on big projects such as bridges, roads and the like, particularly in emerging markets. It is also getting a boost from the huge demand for mining equipment. The company is known for its quality and it maintains a low-cost business model by manufacturing nearly all its own engine components. In the third quarter, revenue increased 34% including a 56% jump in sales outside the U.S. Cummins' trailing 12-month profit has more than quadrupled from a year earlier.

Outlook: Cummins shares have risen 143% this year, including 21% in the past three months, reaching a record $111.70 on Dec. 23. Although its long-running contract to supply engines to Navistar (NAV) is running out, Cummins is expected to benefit from demand for new trucks as the economy recovers. Commercial vehicles haven't been replaced during the recession at normal intervals, meaning there is significant pent-up demand.

Also, the company is expanding its footprint internationally via joint ventures. This month it announced an engine plant in India with Tata Motors (TTM), and it is building one in China. The company's forward price-to-earnings ratio of 16.3 is beginning to look pricey as its historical norm is 14. Eight analysts rank its shares "buy," one "outperform" and nine "hold," according to FactSet.






2. F5 Networks' (FFIV) Application Delivery Controller (ADC) products help companies manage their computer network traffic more efficiently. It also has products that address security concerns.

F5's customer base has evolved from an initial focus on Internet service providers, Web sites and e-commerce sites to the Fortune 500 corporate IT market. Its clients now include: Citigroup (C) and General Motors (GM).

F5 is taking market share from bigger competitors such as Cisco Systems (CSCO). In fiscal 2010, revenue grew 35% as operating margins expanded to 26.1% from 19.3%.

Outlook: In the fourth quarter, revenue rose 45%, which bodes well for 2011 as the pace of revenue growth increased throughout the year. Analysts' consensus five-year annualized earnings growth forecast is 23.5%, roughly double that of the S&P 500. Analysts give the company mixed reviews, with 14 rating it "buy," two "outperform" and one "sell," according to FactSet.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

5 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,012.35 -18.79 -0.11%
S&P 500 1,979.91 -4.22 -0.21%
NASDAQ 4,500.9220 -17.98 -0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs