TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.
Almost a third of stock
returned more than 10% last month, when the
S&P 500 Index
Among those 63
, three that invest in chemical and technology companies might be worth buying before the economy rebounds. The funds -- Fidelity's Select Chemicals Portfolio, Select Materials Portfolio and Advisor Technology Fund -- each returned about 14% last month.
Chemical stocks are likely to gain as the recession lifts because manufacturers need them for their products. Technology shares will rise when companies start upgrading their computer systems and consumers can afford to buy electronic devices again.
Fidelity Select Chemicals Portfolio's
top two holdings are
. The stocks have returned 12% and 13% this year, respectively, doubling the 5.4 rise of the S&P 500 Chemicals Index.
Chemical companies make up more than half of the
Fidelity Select Materials Portfolio
. The fund holds some of the same stocks as the chemicals fund, but offers exposure to metals through
. Freeport-McMoRan jumped 25% in March on optimism about
Fidelity Advisor Technology Fund
invests heavily in
, companies that have been named as potential suitors for
now that talks with
have broken down. The U.S. General Services Administration has named Hewlett-Packard the centralized buyer for information technology products and services, giving it the inside track to bid on $50 billion in projects.
These funds ranked among the top third of "hold"-rated funds at the end of February. They could be upgraded to "buy" in light of their March performances.
TheStreet.com Ratings, recently cited for Best Stock Selection from October 2007 through February 2009 , is an independent research provider that combines fundamental and technical analysis to offer investors tremendous value in volatile times. To see how your portfolio can use this research,
Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.