TheStreet.com Ratings: Seven to Own in '07

We may not have a crystal ball to peer into the future, but we do have proprietary statistical models using key financial metrics that can give us a good idea of what to expect over the next 12 months. And looking at these models, we have selected the following seven investments we expect to be among the best performers a year from now.

You'll notice that this isn't a list of just seven stocks or seven funds; for this list we combed every investment vehicle we analyze to give you the best edge on what we see happening in the year ahead. You won't be able to do that by just sticking with one type of vehicle. In 2007, you'll need every type of arrow for your quiver.

1. We don't see any end in sight for increased defense spending, so we believe PowerShares Aerospace & Defense Portfolio (PPA Quote) is a strong play.

The A-rated exchange-traded fund returned 20% in 2006. It is 50% invested in aerospace/defense, 13% in media, 11% manufacturing, 8% electronics, 5% computers and 4% metal fabricate/hardware. The largest holdings are Boeing (BA Quote), United Tech (UTX Quote), Lockheed Martin (LMT Quote) and Honeywell (HON Quote). ...