H&R Block Financial Advisors Announces Top Equity Picks for 2007
Firm Expects the Current Slowing U.S. Economic Climate to Continue
in 2007 Putting Pressure on Domestic Corporate Earnings While
Alleviating Inflation Pressures
KANSAS CITY, Mo.--(BUSINESS WIRE)--Dec. 8, 2006--The most attractive total return potential for investors in 2007 is projected to come from the Technology and Health Care sectors, according to the H&R Block Financial Advisors (HRBFA) "Top Picks List" released today. Six equities from these two sectors made the annual list.
The complete list of 20 equities was compiled by HRBFA's independent internal team of sector analysts and is based upon rigorous analysis around the fundamental factors of valuation, competitive position, and market conditions.
"Based on our proprietary research and market outlook for the coming year, we believe these companies are well-positioned to outperform in 2007," said Lyle Schonberger, director of the firm's Investment Management Department. "Not all companies perform equally in a slowing economic environment, making sector analysis more difficult and significantly more important. As investors transition their expectations, it is our mission to identify those companies we believe are best-positioned to outperform in this climate, and critical that appropriate sector diversification is maintained."
"The Top Picks for 2007 primarily follow a large-cap, value bias," said Marc A. Zabicki, CFA, Senior Market Strategist for HRBFA. "Historically, at this position in the business cycle, large-cap and value styles take the lead, so from that perspective we are encouraged by the prospects for these companies. Continued global economic growth is also a theme that may prove valuable in 2007. We believe the international exposure many of these companies have developed could translate into benefits for shareholders with many regions of the world continuing to show unusually persistent growth."
All equities are selected from separate industry focus lists that analysts at the firm maintain on an ongoing basis. Following are the 20 stocks that represent the Top Picks List for 2007, which are grouped according to sector.
HRBFA Top Picks List:
Company Ticker Exchange Sector
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Consumer
Bed Bath & Beyond BBBY NASDAQ Discretionary
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Consumer
Comcast Corp. CMCSA NASDAQ Discretionary
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Pepsi Bottling Group Inc. PBG NYSE Consumer Staples
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Walgreen WAG NYSE Consumer Staples
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National Oilwell Varco NOV NYSE Energy
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Superior Energy Svcs. Inc. SPN NYSE Energy
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Bank of America BAC NYSE Financial Services
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E* Trade Financial Corp. ET NYSE Financial Services
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National Financial Partners NFP NYSE Financial Services
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Barr Pharmaceuticals BRL NYSE Health Care
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Coventry Health Care CVH NYSE Health Care
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Johnson & Johnson JNJ NYSE Health Care
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Industrials /
CSX Corp. CSX NYSE Materials
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Industrials /
Embraer-ADR ERJ NYSE Materials
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Industrials /
Newmont Mining Corp. NEM NYSE Materials
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EMC Corp. EMC NYSE Technology
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Microsoft Corp. MSFT NASDAQ Technology
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Western Digital Corp. WDC NYSE Technology
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Sprint Nextel Corp. S NYSE Telecommunications
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Aqua America WTR NYSE Utilities
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Disclosure: Unless otherwise indicated, comments in this document should not be construed as an investment opinion or recommendation of the securities mentioned. A full research report is available which includes potential conflict and other important disclosures. To receive a copy of the full report, please contact your HRBFA advisor, log on to your hrblock.com account and visit the "Investments" section, or send a written request to H&R Block Financial Advisors, Inc., 719 Griswold Street, Suite 1700, Detroit, MI, 48226.
About H&R Block:
H&R Block Inc. (NYSE: HRB) is a leading provider of tax, financial, mortgage, accounting and business consulting services and products. H&R Block is the world's largest tax services provider, having prepared more than 400 million tax returns since 1955. The company and its subsidiaries generated revenues of $4.9 billion and net income of $490 million in fiscal year 2006. In fiscal year 2007, it is operating in four principal business segments: Tax Services (income tax preparation and advice via in-office, online and software solutions); Mortgage Services (wholesale mortgage originations and loan servicing); Consumer Financial Services (investment and financial advisory services, retail mortgage loans, and banking products and services); and Business Services (tax, accounting and consulting services for midsized businesses). Headquartered in Kansas City, Mo., H&R Block markets its services and products under three leading brands - H&R Block, Option One and RSM McGladrey. For more information, visit our Online Press Center at www.hrblock.com.
H&R Block Financial Advisors provides brokerage services and investment planning in the U.S. Services offered include traditional brokerage services, as well as annuities, insurance, fee-based accounts, online account access, equity research and focus lists, model portfolios, asset allocation strategies and other investment tools and information. H&R Block Financial Advisors, Inc. is a registered broker-dealer with the SEC and member of the NYSE, SIPC and NASD.
CONTACT: H&R Block Inc.
Stacie Fleming, 816-512-2324
HRBFA Corporate Communications
stacie.fleming@hrblock.com
SOURCE: H&R Block Inc.