UHS, WTNY and ORI: Three Top Stocks from Top Rated Industries

Most investors might not consider hospitals, regional banks and insurance companies to be particularly swanky. But when it comes to investing, these three industries represent three of the top five industries as rated by our PowerRatings (for Industries) ratings.

The best industries, industries that receive a 10 PowerRatings (for Industries) rating, have dramatically outperformed other industries according to our research looking at the entire market of industry groups going back to 1995. Specifically we found that from 1995 to 2006, industries with a 10 PowerRating (for Industries) rating provided investors with average annual returns that were more than 35%.

This is more than twice the average annual return for the average industry group.

Of the top five industry groups, the five 10 rated groups, three industry groups featured at least one stock that itself had an impressive Â"in the greenÂ" PowerRating (for Investors) rating. By not only spotting the top industry groups, but also the top stocks within those groups, investors can build a portfolio of the Â"best of the bestÂ" that will provide exposure to both sectors AND stocks that are likely to outperform in the years to come.

LetÂ's take a look at the stocks and their industries:

Universal Health Services (UHS) with a PowerRating (for Investors) rating of 8 is the top stock in the hospitals industry group, a group with a 10 PowerRating (for Industries) rating. UHS owns and operates a wide variety of health care facilities, from hospitals to ambulatory surgery centers. Based on its 8 PowerRating (for Investors) rating, Universal Health Services is a significantly more attractive investment candidate than some of its peers such as Lifepoint Hospitals (LPNT) with a PowerRating (for Investors) rating of 6 and Tenet Healthcare (THC) with a PowerRating (for Investors) rating of 5.

While the headlines continue to scream about subprime mortgages, the regional banks - southeast industry group continues to shine with a PowerRating (for Industries) rating of 10. Here, the belle of the ball is a stock called Whitney Holding Company (WTNY). Whitney Holding Company is based in New Orleans, Louisiana and operates in the five-state Gulf area. With a PowerRating (for Investors) rating of 8, WTNY edges out Alabama-based Regions Financial Corporation (RF) which has a PowerRating (for Investors) rating of 7.

Rounding out our group of top stocks in top industries, we leave the south for the Windy City and a 9 rated stock in a 10 rated industry. Surety and title insurance is the industry with the 10 PowerRating (for Industries) rating, and Old Republic International Corporation (ORI) is the 9 rated, PowerRatings (for Investors) stock. ORI is an insurance underwriter, doing most of its business in commercial liability for industrial, transportation and financial firms. Old Republic International Corporation is clearly the top investment pick in this group, with peers First American Corporation (FAF) and Fidelity National Financial, Inc. (FNF) both earning 7 PowerRatings (for Investors) ratings.

Top Stocks from Top Industries Recap:

Top Industry: Hospitals. PR Industries: 10.

Top Stock: Universal Health Services (UHS). PR Investors: 8

Top Industry: Regional - SE Banks. PR Industries: 10

Top Stock: Whitney Holding Company (WTNY). PR Investors: 8

Top Industry: Surety & Title Insurance. PR Industries: 10

Top Stock: Old Republic International Corporation (ORI). PR Investors: 9

David Penn is Senior Writer at TradingMarkets.com