A more defensive ‘Baker’s Dozen’

Sabrient Systems’ annual “Baker’s Dozen” stock picks have mostly outpaced the broader market over the last decade.

Last year’s portfolio notched an average total return of 26.5 percent, including dividends, by the end of the year. By compari410 5+( 5$0'$3' 113’s

500 index had a total return of 20.2 percent over the same period.

In compiling this year’s 13-stock portfolio, Sabrient looked for stocks that, given the market’s run-up in 2017, wouldn’t be overpriced.

“We wanted to be more defensive than we had been the last few years,” says David Brown, the firm’s chief market strategist. “We don’t want to be buying the companies that are the most overvalued,

even if they appear to have a lot of growth coming this year.” Brown is betting there are big values to be had in energy. This year’s list includes three energy companies: Cabot Oil & Gas, +(7310 $0' $3$5+10 (531.(6/

He also expects semiconductor companies like Lam Research and ON Semiconductor to be big gainers as demand ramps up for connecting devices to the internet.

“We’re very positive on the smart chips, on the internet of things,” Brown says.