Our POWR Ratings system makes it easy to find stocks that are more likely to outperform. Investors just need to look for stocks that have an overall grade of A or B. But, you can go a step further, and only invest in A or B stocks in industries rated an A or B. That's why investors should consider Gartner , Inc. (NYSE:IT), Signet Jewelers (NYSE:SIG), and CRA International, Inc. (CRAI), which are three such stocks.The S&P 500 may be up 6% for the month, but that doesn't mean stocks will continue rising through the end of the year. There are still a host of concerns that investors are grappling with, including inflation, labor shortages, and supply constraints. Since there could be some more volatility ahead, it's best to consider stocks that have a stronger chance to outperform in the months ahead.
As you may know, our POWR Ratings system was designed to find the stocks that have the best potential for outperformance. The system weighs 118 different factors for every stock. These factors help contribute to a stock's likelihood of outperformance. Stocks that have an overall grade of A or B are likely to outperform. But we can take it up a notch. The POWR Ratings also include six Component Grades and an Industry Grade.
Our research found that picking top-rated stocks in top-rated industries increases the potential for outperformance. Our analysis shows that stocks in an A or B-rated industry, on average, are more likely to outperform. So, I ran a screen for stocks with an overall grade of A in an A-rated industry. This resulted in stocks such as Gartner, Inc. (IT), Signet Jewelers (SIG), and CRA International, Inc. (CRAI).