This column was originally published on RealMoney on July 27 at 12:49 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.The anointed winners are becoming clear from this quarter's earnings and they won't be changing anytime soon. They will just be accentuated. Here's the list.
- First it's Merck (MRK), which is now best in show after a huge litigation-related banging. That's over, the country's turning on the class action lawyers, and Merck's the biggest beneficiary. As a corollary, Pfizer's (PFE) done going down. That should be obvious to pretty much everyone. Amgen (AMGN) is now the biotech world's new fave.
- Altria's (MO) going up on earnings, not the break-up. The earnings change is Kraft (KFT), which put in a respectable quarter for the first time in ages.
- Comcast (CMCSA) and AT&T (T) are now perceived as classical winners and can rally forever given how compressed they are.
- Tech doesn't have much to recommend, but Motorola's (MOT) now the loved player. High-multiple-wise, it is all about Akamai (AKAM).
- Just about any oil works, but I believe people will gravitate to Conoco (COP) for a clean quarter. Schlumberger (SLB) is going higher as a best-of-breed play in that department.
- We've got a new winner in supermarkets, and that's Safeway (SWY). It's thing-of-beauty quarter changed peoples' minds for good. Walgreen's (WAG) delivers; it gets loved again.
- Soft drinks: Both Coca-Cola (KO) and Pepsi (PEP) are now on the loved bandwagon.
- For banks, Wells Fargo (WFC) is so adored right now that I can't see it quitting anytime soon.