James Covello Goldman Sachs
second team Timothy Arcuri Citi
third team Christopher Muse Jr. Barclays
James Covello of Goldman Sachs vaults from third place, where he spent the past three years, to the top spot he last held in 2005. Praised by one buy-side booster for his “great understanding of the cyclical nature of the group,” Covello upgraded the sector from neutral to attractive in October 2008, telling clients that the stocks had been beaten down so badly, they would snap back “like a rubber band that had been pulled back too far.” The sector rose 6 percent through August, only 1.8 percentage points behind the broad market. New-product development prompted Covello, 36, to issue a buy rating on Teradyne, a North Reading, Massachusetts, outfit that manufactures chip-testing equipment, in January. The stock had leapt 65.3 percent, from $4.99 to $8.25, by August 31.
Citi’s Timothy Arcuri drops a notch to second place. The San Francisco–based analyst upgraded ATMI, a Danbury, Connecticut–based manufacturer of equipment for flat-panel displays, to buy in November, on rising demand. The stock had zoomed from $12.16 to $17.60 by early June, gaining 44.7 percent at a time when the sector was mostly flat, and Arcuri downgraded it to neutral, on valuation. By late August, ATMI’s shares had slipped 3.5 percent, to $16.99.
Christopher Muse Jr. of Barclays Capital debuts in third. Among the analyst’s best calls of the past year: a valuation-driven buy recommendation on Cymer, a San Diego–based manufacturer of ultraviolet lasers, in March. The stock had returned a glowing 90.5 percent gain by August 31. Muse’s research “helps me understand all kinds of company and industry fundamentals,” says one money manager.
Click here to see the All-America Research Team rankings.
