Linda Duessel

0 Comments | USA TODAY, December, 2007

Equity market strategist

Federated Investors

Activision ($26.72 Friday, ticker: ATVI). The video game maker is merging with Vivendi, creating an $18billion-a-year gaming giant. It's immune to downturn because stay-at-home gamers in the world of Wii and Xbox view Call of Duty and Guitar Hero as must-haves, good economy or not.

Nabors Industries ($27.81, NBR). This play on global drilling, with a price-earnings ratio of 8.5, is one of the cheapest energy stocks. Robust international growth will buoy profits as spending on North American drilling slows.

Raytheon ($61.66, RTN). Historically, the military contractor has proved to be a profitable, defensive stock play during periods of economic turbulence. Expected growth in U.S. military...