James Glassman's 10 Stock Picks for 2017

Having beaten the market in 2016, I'm banking on these 10 stocks to outperform in the year ahead — and beyond.

(Image credit: Savushkin)

I’m baaack! After my annual stock picks trailed Standard & Poor’s 500-stock index in both 2014 and 2015, my choices from a year ago returned 8.0% over the past 12 months, beating the index by 3.4 percentage points. The past 10 lists have topped the index by an average of one percentage point per year. That’s not much, but, like many of you, I enjoy picking stocks and don’t want to put all of my money into index funds.

For two decades, I have been offering a list culled from selections of experts I trust, with a stock I choose tossed in. The 2016 list produced six winners, four losers and a lot of volatility. The top gainer was TAL Education Group (symbol XRS), which offers after-school tutoring in China. The stock, which was held by Wasatch World Innovators Fund (WAGTX), soared 112% over the past year. The biggest loser was Xerium Technologies (XRM), a maker of parts for paper-making machines. Xerium was supposed to be a turnaround story, but it hasn’t quite turned around yet. The choice of Dan Abramowitz, my small-cap maven, the stock lost 54%. (Prices and returns are as of October 31.)

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James K. Glassman
Contributing Columnist, Kiplinger's Personal Finance
James K. Glassman is a visiting fellow at the American Enterprise Institute. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence.