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Watch List Summary

The companies on our Nasdaq 100 Watch List from October 18, 2010 have averaged a 6.36% gain in the intervening period. The complete list of 21 companies can be found here.

In the same period, October 18 to November 9th (based on the closing price), the Nasdaq 100 has gained 3.46%. FLIR Systems (NASDAQ:FLIR) gained 9.93% while Intel (NASDAQ:INTC) gained 9.52%. When including the dividend paid by Intel, the stock increased in value by 11.13% The laggard of the group was Apollo Group (NASDAQ:APOL) with a decline of -1.15%. The chart below shows all of the Nasdaq 100 stocks from October 18th.

click to enlarge images

Nasdaq 100 Watch List

Symbol Name Price P/E EPS Yield P/B % from Low
WCRX Warner Chilcott plc $20.89 10.28 2.03 N/A 2.66 5.67%
APOL Apollo Group, Inc. $36.84 10.19 3.62 N/A 4.01 5.80%
TEVA Teva Pharmaceutical In $50.81 15.64 3.25 1.40% 2.11 8.13%
ISRG Intuitive Surgical, Inc. $277.96 33.08 8.4 N/A 5.44 8.96%
AMGN Amgen Inc. $54.93 11.87 4.63 N/A 2.17 9.29%
PAYX Paychex, Inc. $27.77 20.71 1.34 4.40% 6.99 12.66%
XRAY DENTSPLY . $31.64 17.12 1.85 0.60% 2.49 13.98%
URBN Urban Outfitters, Inc. $33.27 21.65 1.54 N/A 4.07 14.61%
GRMN Garmin Ltd. $30.01 8.2 3.66 4.90% 2.04 14.94%
DISH DISH Network Corporation $19.91 11.94 1.67 N/A N/A 14.95%

Top Five Performance Review

In our ongoing review of the Nasdaq 100 Watch List, we have taken the top five stocks on our list from November 6, 2009 and have check their performance one year later. The top five companies on that list are listed below with the closing price for November 6, 2009 and November 9, 2010.

Name Symbol 2009 Price 2010 Price % change
Apollo Group APOL 55.99 36.84 -34.20%
Cephalon CEPH 58.26 65.23 11.96%
Genzyme Corp GENZ 52.28 70.65 35.14%
Phama. Prod. Develop. PPDI 19.26 25.79 33.90%
Gilead GILD 46.26 38.51 -16.75%
Average 6.01%
Nasdaq 100 1730.76 2176.88 25.78%
Nasdaq Composite 2112.44 2562.98 21.33%

As a group, the top five companies on our Nasdaq 100 list averaged a gain of 6.01% in the last year. This compares with the Nasdaq 100 Index gain of 25.78% and the Nasdaq Composite gain of 21.33% in the same one year time frame. Of the two companies that took large loses, Gilead Sciences (NASDAQ:GILD) appears the most appealing from a research standpoint. Apollo Group (APOL) appears unable to right itself due to signifcant governmental and industry pressures.

Disclaimer

On our current list, we excluded companies that have no earnings. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and extensive due diligence. We suggest readers use the March 2009 low (or companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. The November 2008 to March 2009 time frame fits that description. It is important to place these companies on your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety. It is our expectation that, at the most, only 1/3 of the companies that are part of our list will outperform the market over a one year period.

Disclosure: No positions

Source: Top 10 Nasdaq 100 Stocks for Research