Best stocks for 2008

Fortune found ten stocks that will thrive despite - or even benefit from - the troubles facing the markets next year.

<a href='http://money.cnn.com/quote/quote.html?symb=DNA'>Genentech</a>
P/E Ratio: 20
Yield: 0%
Once the darlings of biotech investors, Genentech shares have been in a prolonged slump since topping out at $96 in 2005. But the company itself remains a standout, and recent news provides the opportunity to buy the shares at a discount. On Dec. 5, the stock was pounded, plunging 10% in a few hours. The reason: An FDA advisory panel voted against expanding the use of Avastin - a blockbuster Genentech drug already approved to treat colon and lung cancer - for breast cancer.

Even with the FDA setback, Genentech is still expected to grow earnings 18% next year. And it's not as if Avastin is the only thing Genentech has going for it. There are early indications that its cancer drug Rituxin holds hope for treating autoimmune diseases like multiple sclerosis and lupus. It also has Herceptin - considered a miracle drug for certain types of breast cancers - and Lucentis, which treats macular degeneration and might one day be used for vision loss related to diabetes.
Last updated January 02 2008: 5:32 PM ET
Annaly Berkshire Hathaway Dick's Sporting Goods Electronic Arts Genentech General Electric Jacobs Engineering Merrill Lynch Petrobras St. Joe
Price/earnings ratios based on estimated 2008 earnings
Stocks set to sizzle Fortune's Jon Birger looks ahead at the best investing bets for 2008. (more) video
Six standout funds Picking the right fund takes a skillful eye. We found six standouts led by masters old and new. (more)
Top foreign stocks for 2008 The year ahead poses challenges for the global economy - but here are some strategies that should prove fruitful. (more)