Time to Consider Diversifying Your Portfolio with some Storage Stocks
The S&P 1500 Computer Storage & Peripherals subindustry index has seen an improvement in its rolling 12-month price performance over the past few weeks. Year to date through Sept. 7, the Computer Storage & Peripherals subindustry index gained 7.3%, vs. a 2.8% rise for the S&P Composite 1500 index, which consists of the large-cap S&P 500, MidCap 400, and SmallCap 600 indexes.
Take a look at the accompanying chart, which shows this subindustry index’s rolling 12-month price performance compared with that for the S&P 1500. Any point above 100 indicates sector outperformance vs. the S&P 1500 over the prior year, while points below 100 show sector under-performance. The red line is a rolling nine-month moving average, while the two green bands indicate one standard deviation above and below the index’s longer-term mean relative strength.
There are 13 companies in the S&P Computer Storage & Peripherals subindustry index. Seven have S&P STARS rankings, of which four have 4 STARS (buy) or 5 STARS (strong buy) designations: EMC (EMC; $19; 5 STARS), Network Appliance (NTAP; $27; 4 STARS), QLogic (QLGC; $13; 4 STARS), and Western Digital (WDC; $22; 4 STARS).
