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. ...