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Here's how Wall Street analysts' favorite -2-

   Intuit Inc.                                 INTU                                       48.4%                                  52%                $252.68                                       $240.17                                                     -5%                                     163% 
   Accenture PLC Class A                       ACN                                        48.3%                                  69%                $165.24                                       $172.50                                                      4%                                     120% 
   Cboe Global Markets Inc.                    CBOE                                       48.3%                                  53%                 $95.44                                       $107.53                                                     13%                                     104% 
   Philip Morris International Inc.             PM                                        48.0%                                  59%                 $91.17                                        $89.39                                                     -2%                                      34% 
   Idexx Laboratories Inc.                     IDXX                                       46.5%                                  63%                $219.43                                       $244.75                                                     12%                                     142% 
   Mastercard Incorporated Class A              MA                                        43.7%                                  90%                $230.76                                       $242.30                                                      5%                                     115% 
                                                                                                                                                                                                                                                                                           Source: FactSet 

On this ROIC-selected list, six of 10 companies outperformed the S&P 500 through Friday, while one, HP Inc. (HPQ), was close behind, with an 83% return.

But VeriSign Inc. (VRSN), which had the highest ROIC, was the second-worst performer on the list and did far worse than any company on the first list of analysts' favorites from five years ago. And shares of Boeing Co. (BA) were down 47% for five years through Friday, while the worst performer on the analysts' list, Humana Inc., had a positive return of 32% for five years.

Other observations about the data:

The lists of analysts' 10 favorites and of the top ROIC performers five years ago are mutually exclusive.There were five companies on the analysts' list with triple-digit five-year returns, and there were six of those on the ROIC list.

In conclusion, the ROIC analytical method would have worked out better when judged by the number of winners, but the analysts' list would have turned out to be safer.

Both approaches can be useful. Investors should consider all sources of information available, including financial performance and analysts' ratings, targets and estimates, when forming their own opinions about potential investments.

Click here for Tomi Kilgore's detailed guide to the wealth of information available for free on the MarketWatch quote page.

Don't miss: Nvidia is no longer Wall Street's favorite stock. This company is.

-Philip van Doorn

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03-26-24 0703ET

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