Research firm reckons that, together, these 40 will beat its broad-market benchmark. Last week financial research firm Standard & Poor’s unveiled its PowerPicks model portfolio for 2006. (See chart below.) The 40-stock portfolio, gleaned from the 1,500-plus stocks covered by Standard & Poor’s 65 U.S. equity analysts, is meant to exceed the total return – including capital appreciation and dividends paid – generated by the S&P 500 Index during the year.

The PowerPicks concept beat the S&P 500 in five of the eight years it has been around. Last year, for example, the PowerPicks portfolio saw a 9.7% return for the calendar year through 30 November, or roughly twice the S&P 500’s gains through the same period. From its inception in January 1997 through 30 November 2005, the PowerPicks model portfolio added 11.2% on an annualized basis versus a 7.7% increase for the S&P 500 in the same period.

This year’s PowerPicks emphasize large-cap stocks with 27 such stocks in the portfolio. That, says Stephen Biggar, head of Standard & Poor's Equity U.S. equity research, “reinforces the S&P equity research department's stance that large capitalization stocks are poised to resume a leadership position in 2006 following six years of under-performing” S&P’s mid- and small-cap indices.

Standard & Poor’s is a unit of McGaw-Hill, a New York-based publisher. –FWR

S&P 2006 PowerPick Portfolio

Name
Symbol

Close 30-12-05 $

Price/earnings

Market cap $

Aetna
AET
94.31
18.90
26.97b

Altera
ALTR

18.53

26.36
6.72b

Canadian Natural Resources
CNQ
49.62
58.31
26.63b

Capital One Financial
COF
86.40
13.04
23.04b

CenturyTel
CTL
33.16
13.12
4.34b

ChevronTexaco Corp.
CVX
56.77
9.00
127.45b

Cimarex
XEC
43.01
11.65
3.54b

Coach
COH
33.34
30.90
12.67b

Constellation Brands
STZ
26.23
20.52
5.80b

Covance
CVD
48.55
26.54
3.04b

CVS
CVS
26.42
20.75
21.51b

Danaher
DHR
55.78
21.03
17.19b

Duke Energy
DUK
27.45
17.01
25.46b

Electronic Arts
ERTS
52.31
43.48
15.72B

Eli Lilly
LLY
56.59
48.33
64.32b

Endo Pharmaceuticals
ENDP
30.26
25.39
4.02b

Fiserv
FISV
43.27
18.10
7.98b

FMC Corp.
FMC
53.17
11.11
2.02b

FPL Group
FPL
41.56
18.54
16.41b

Goldman Sachs
GS
127.71
11.39
57.57b

Hartford Financial Services Group
HIG
85.89
10.71
25.80b

Hologic
HOLX
37.92
60.58
1.68b

Home Depot
HD
40.48
15.67
85.99b

IndyMac Bancorp
NDE
39.02
9.00
2.50b

Ingersoll-Rand
IR
40.37
10.89
13.36b

Kohl's
KSS
48.60
20.74
16.75b

Landstar System
LSTR
41.74
25.11
2.44b

Manitowoc
MTW
50.22
28.49
1.52b

MetLife
MET
49.00
8.21
37.11b

Motorola
MOT
22.59
14.09
56.27b

Myriad Genetics
MYGN
20.80
N/A
643.84m

Nabors
NBR
75.75
22.29
11.93b

Procter & Gamble
PG
57.88
21.26
137.62b

Robert Half
RHI
37.89
29.86
6.45b

Seagate Technology
STX
19.99
10.91
9.61b

Simon Property Group
SPG
76.63
42.93
16.85b

Standard Pacific
SPF
36.80
6.05
2.53b

Strategic Hotel Capital
SLH
20.58
N/A
N/A

W.W. Grainger
GWW
71.10
19.60
6.36b

Wm. Wrigley Jr.
WWY
66.49
27.82
14.92b

.