85-85 Index Shined In '07; Fertilizer, Solar Names Led

The new year started on a sour note as stocks took a big hit on the first trading session of 2008.

That changed the current market outlook to rally under pressure, which means that investors should hold off on new buys.

Still, we note that few leaders really broke down.

The market had just ended another ground-gaining year. And the best stocks led the way.

IBD's Weekly Review 85-85 index leapt 30.7% in 2007, blowing past Nasdaq's 9.8% and S&P 500's 3.5%.

The outperformance was due to a number of huge moves by fertilizer, solar, farming and oil-related stocks. These groups were among the best performers of 2007.

Growing demand for food -- both as food and fuel -- was a boon to fertilizer makers. But most are now extended from proper buy points.

Mosaic MOS was No. 3 on IBD's list of The Best Stocks of 2007, exploding 342%.

Mosaic's earnings soared 667% and 386% in the latest two quarters. Analysts expect a 380% pop in its current quarter. It reports on Jan. 9.

Group mate Terra Nitrogen TNH wasn't far behind, as it surged 339%. The stock was in a solid uptrend until the July correction, which cut shares in half . It has recovered and gone on to new highs.

Demand for alternative power made solar stocks hot last year.

Suntech Power Holdings STP charged up 142% last year. The Chinese maker of solar power cells gave investors a bumpy ride during the first half of the year.

But it turned around and doubled after clearing a cup-with-handle over 43.63 in October.

Crude's relentless climb proved to be a geyser for some oil stocks.

National Oilwell Varco NOV jumped 140% in 2007. Last month, the maker of oil and gas drilling gear said it would buy Grant Prideco GRP for $7.5 billion in cash and stock.