MILLBURN, N.J. (Stockpickr) -- Since peaking this summer on July 22, the equity market has tumbled. Despite a slight recovery, it remains well below the summer highs. There are a variety of reasons to account for the "Summer Crash," most notably the continued weakness in the European credit markets and concerns for a double-dip recession in the U.S.From July 22 to Sept. 2, the S&P 500 declined by 12.72% -- but not all stocks declined to that degree, and many, in fact, actually rose. Further, some of these stocks are poised for further outperformance for the balance of the year. Related: 2 Pair Trades for a Stagnant Economy Stock picking is all about finding the right stocks. To this end, I've performed a screen of U.S. stocks that outperformed the S&P 500 from July 22 to Sept. 2. I've excluded stocks with market capitalizations below $100 million, stocks with prices below $5, takeover targets and ETFs. Here are seven top-performing stocks that I expect to continue to outperform the market in the near future.
Sturm RugerSturm Ruger ( RGR) makes and sells firearms. The stock has been on a tear lately, most notably since reporting its results for the June quarter. Earnings are growing in the mid-teen percentages and are expected to do so in the future. Compare this with the company's more popular yet smaller competitor, Smith & Wesson Holdings ( SWHC), which has struggled to grow sales and earnings the past few years. Carl Icahn had built up large positions in Smith & Wesson through the summer of 2010 only to sell of out the stock later in the third quarter of that year. Perhaps that has focused investor attention away from Smith & Wesson and onto Sturm Ruger. Sturm Ruger sells at 16 times 2012 earnings expectations, which is quite reasonable given earnings growth expectations. Sturm Ruger is one of TheStreet Ratings' top-rated leisure goods stocks. Two other stocks, which I have discussed recently, belong on this list. First is Green Mountain Coffee Roasters ( GMCR), which rose 11.70% during the period in question and which I featured in " 6 Stocks to Win the Race. The second stocks I Con Edison ( ED), which rose 4.65% and also paid a dividend of 60 cents (just over 1%) during the period. I highlighted Con Edison as one of " 6 Low-Volatility Stocks for a Volatile Market." -- Written by Scott Rothbort in Millburn, N.J.
Twitter and become a fan on Facebook.