How 2005's picks fared
Some of last year's FORTUNE 40 have risen so much they're off the list -- and some have dropped precipitously.

NEW YORK (FORTUNE) - We're pleased to report that the FORTUNE 40 turned in a stellar year. From June 24, 2005, to June 2, 2006, our diversified group of small, mid-sized, and large domestic and international equities returned 17 percent. The S&P 500 gained 10 percent over the same period.

In fact, last year's portfolio was so successful that we used largely the same methodology to choose this year's stocks. Some of our winners, like top performer Lincoln Electric (Charts) - up 95 percent - have risen so much that they no longer meet the requirements of our screens. (Lincoln is off in part because it has grown too large to qualify for our small-cap category.)

Picks to help you weather the market's wild swings.

Other winners - such as Petroleo Brasileiro (Charts), Brazil's state-owned oil company, up 84 percent - remain on, despite their share gains, because their prospects are still so strong.

And, of course, we've dumped some losers, like our worst dog, Boston Scientific (Charts), which tumbled 25 percent, thanks to a disastrously expensive $27 billion takeover deal for Guidant (after an epic bidding war with Johnson & Johnson (Charts) that, frankly, we wish it had lost).

Here is a complete list of last year's picks. Top of page

Growth & Income «click a ticker for latest data»
Company (Ticker) Total return
Abbott Labs (ABT) -9.70
Altria Group (MO) 15.51
Coca-Cola (KO) 6.12
Colgate-Palmolive (CL) 21.67
General Mills (GIS) 5.25
Pfizer (PFE) -12.21
Procter & Gamble (PG) 4.24
Wyeth (WYE) 8.58

Bargain growth «click a ticker for latest data»
Company (Ticker) Total return
Accenture (ACN) 23.25
Boston Scientific (BSX) -24.75
Dover Corp (DOV) 38.44
Furniture Brands (FBN) 3.54
Harley Davidson (HDI) 0.54
Home Depot (HD) 0.22
Progressive (PGR) 10.70
Stanley Works (SWK) 13.01

Deep value «click a ticker for latest data»
Company (Ticker) Total return
Banta (BN) 12.39
Burlington Resources (BR) 67.94
Kellwood (KWD) 20.12
Liz Claiborne (LIZ) -1.69
Loews (LTR) 34.32
Lubrizol (LZ) 1.88
Pulte Homes (PHM) -22.74
Thor Industries (THO) 65.60

Small wonders «click a ticker for latest data»
Company (Ticker) Total return
American Woodmark (AMWD) 22.67
Arkansas Best (ABFS) 43.88
Briggs & Stratton (BGG) -0.83
Dycom Industries (DY) 17.27
Ethan Allen (ETH) 17.60
Helen of Troy (HELE) -23.54
Lincoln Electric (LECO) 94.52
Winnebago (WGO) -10.42

Foreign value «click a ticker for latest data»
Company (Ticker) Total return
AstraZeneca (AZN) 37.24
Matsushita Electric (MC) 48.63
Petroleo Brasileiro (PBR) 83.65
Sanofi-Aventis (SNY) 16.49
Telefonos de Mexico (TMX) 14.84
Total (TOT) 17.85
Unilever NV (UN) 7.92
Vodafone Group (VOD) -0.21

Cumulative returns  
Fortune 40 16.74
S&P 500 10.05

Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?