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Great Brands and Great Stocks: Part 1

Interbrand this week released its updated 2013 brand rankings, which saw Apple leap to the No. 1 spot, followed by other tech players and, of course, Coca-Cola. Having a powerful brand is, obviously, an invaluable tool -- one that bewitches consumers and investors alike. And, over time, each of the five top picks have been great long-term holdings. However, a quick glance at Interbrand's top picks shows just two that have outperformed the S&P 500 this year. When it comes to stock picking, the lesser valued brands may have greater upside potential in the coming years. Here are a few to look at.

The Top 5 as ranked

The top five brands, according to the research and consulting firm, are as follows: Apple, Google, Coca-Cola, IBM, and Microsoft. Now, Interbrand's ranking is certainly not entirely based on investment performance (though the companies' financial returns do play a part), but it's interesting to note that only Google and Microsoft have outperformed the market at large. For reference, Google is up nearly 22% year to date, while the S&P 500 has gained slightly less than 20%. Microsoft has gained 20.5%.

The biggest year-over-year riser in Interbrand's ranking, Apple, has lost one-tenth of its market value this year.

Looking further down the list gives investors a glimpse into brand names that are growing fast and whose stocks may not be as closely scrutinized by Wall Street analysts, and potentially offer investors greater upside potential.

A few good names

Coming in at No. 72 in the rankings, but also one of the biggest gainers on the list, is Prada. The 100-year-old luxury goods maker holds one of the most iconic badges to grace a purse, and is far from going stale.