A tepid Wall Street in 2000 shouldn't expect a hot flash in 2001. Still, there's money to be made, if investors just know where to look.

        “There's some good values out there,” said Mark Hogan, executive vice president and portfolio manager at O'Sullivan, Sims & Hogan downtown. “Some good stocks out there have been beaten up.”

        Local analysts point to financial, health care and even technology stocks as ones that could be winners in 2001. Most important, companies that have strong fundamentals and good earnings growth are the ones that will succeed in a fickle market.

        “Earnings matter,” said Marilyn Osborn, a partner in the Osborn & Kelly investment advisory firm downtown.

        And the earnings outlook is strong for banking and other financial services companies, especially if the Federal Reserve lowers interest rates at its next meeting Jan. 30-31.

        But Mr. Hogan predicts that the stock market — particularly financials — could take a big hit if the Fed doesn't perform as expected. Banking stocks still stand to gain, however, from the continued wave of merger activity across the country.

        Pharmaceuticals and health-care stocks also look strong for 2001, in part because of their strong earnings picture, but also be cause Texas Gov. George W. Bush won the presidency. A Republican government could mean less regulation and greater profits for the industry.

        And despite many technology stocks having their values all but obliterated in 2000, Mr. Hogan said some could stage a comeback in 2001.

        “Tech will do well probably toward the second part of the year,” he said.

        Not all of tech, however. Many overvalued dot-coms may never see values they hit in early 2000. Mr. Hogan recommends sticking to those that — what else? — have solid fundamentals and strong earnings growth.

        “They've been down the most, plus they'll have much easier earnings comparisons,” he said. “Within the next couple of months will be the best time to buy them.”

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