(MONEY Magazine) – Stocks of companies based in Miami outperformed those of 23 other metropolitan areas in the first quarter of 1995, according to the exclusive MONEY/ Nordby Cities Index. The Florida city's 12 stocks averaged a 12.7% gain, topping the 9% return on the Standard & Poor's 500 index by nearly four percentage points. The worst performer, curiously, was the other Florida city we track, Tampa, whose stocks edged down 0.9%.

The MONEY/Nordby Index is composed of a group of 24 local indexes, each consisting of shares of 12 companies with headquarters in a single metropolitan area. Every stock carries equal weight in its local index, which measures only changes in share prices-dividends are not included.

Miami jumped to the top from a 17th place finish in the fourth quarter of 1994, when its stocks dipped 3.7%, and a 23rd place showing for all of 1994, during which it suffered a 9.1% drop. Leaps of more than 30% in three stocks powered the turnaround. The best performer: $800 million (in annual sales) Wackenhut, which surged 50.7% as investors applauded outstanding results in its nationwide privatized prison business. The $5.1 billion health-care and chemicals maker W.R. Grace was the city's No. 2 winner with a 37.9% rise despite the forced resignation on March 2 of chief executive J.P. Bolduc amid charges of sexual harassment (which he denies). Before his dismissal, Bolduc had sold off several divisions to focus the company on its fast-growing core businesses. The third big gainer was $1.3 billion generic drugmaker Ivax, which soared 31.6% on the acquisition of former rival Zenith Laboratories.

The San Francisco Bay Area took second place with a 12.3% return. That was slightly better than its fourth place finish in the previous quarter and its fifth place ranking for all of 1994. Six of the 12 Bay Area stocks scored double-digit gains, led by $14 billion chipmaker Intel, up 32.9%, which recovered from the December flap over flaws in its Pentium chip. Other Bay Area companies posting impressive increases included BankAmerica (22.2%), Hewlett-Packard (20.5%) and trucker Consolidated Freightways (19%).

New York City claimed third place with an 11.6% advance, improving from sixth place in the fourth quarter and 12th in 1994. Seven Big Apple stocks delivered double-digit returns, led by $8.6 billion retailer Woolworth, up 23.3%, which brought in former R.H. Macy president Roger Farah as chief executive in December to turn around its troubled discount store operations.

Tampa, which dropped 0.9%, was the only city to register a loss in the first quarter. Three Tampa stocks suffered sharp declines, including $383 million retailer Sports & Recreation, which plummeted 55.3% after fourth-quarter '94 earnings came in 23% below expectations. A fourth-quarter earnings decline of 34% for $2.4 billion computer products distributor Tech Data sent its stocks down 39.7%. Home Shopping Network, with $1.2 billion in sales, skidded 20%. Profit margins at the TV retailer have been shrinking because its customers are buying fewer high-priced goods such as gemstones. --Jordan E. Goodman