This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"HMS Holdings Corp. (NASDAQ: HMSY), which makes its money by correcting errors in Medicaid payments and recovering misspent money, is my top pick for 2009," says growth stock specialist Dave Dyer.

In his Dave Dyer's Newsletter, he explains, "This is a company whose fundamentals appear to improve as the economy declines.

"If you think that the unemployment rate will rise in 2009, then you ought to love HMS Holdings. They recently raised their 2009 guidance because they expect higher unemployment.

"The company stated that the unemployment rate is the most important leading indicator of growth in the Medicaid program, which in turn, is one of the most important drivers of their revenue.

"Medicaid is funded by the federal government and administered by the individual states. With 40 of the 50 states under contract, HMSY essentially has a monopoly in this market.

Health care has long been considered a recession-resistant business. Given the current economic challenges, it's little surprise that in our survey of favorite stocks for the coming year, a number of leading advisors turned to this classic defensive sector.

In this year's Top Stock Picks from 75 advisors report, we found an intriguing group of medical-related stocks, from speculation in emerging biotech to well-established pharmaceutical firms, and from medical products makers to medical services firms focused on increasing health care efficiency and early disease detection.

Mike Cintolo, editor of The Cabot Market Letter, thinks Myriad Genetics (NASDAQ: MYGN) could be a "big winner in 2009," The company is a lead in the new field of cancer predisposition testing. For Mike's full report, read Top Stock Picks '09: Myriad Genetics.

Chuck Carlson, editor of The DRIP Investor, sees both quality and potential in Bristol-Myers Squibb (NYSE: BMY). For Chuck's full report, read Top Stock Picks '09: Bristol-Myers Squibb.

MOST NOTEWORTHY: Adobe Systems Inc (ADBE), CA Inc (CA) and DSW Inc (DSW) were today's most notable initiations:

• Adobe Systems Inc (NASDAQ: ADBE) was initiated with an Outperform rating and $47 target at Credit Suisse. The firm said Adobe is one of the best-positioned large-cap software companies given its leading position in digital media and growing presence in enterprise mobile and Web 2.0 markets.

• CA Inc (NYSE: CA) was initiated with a Hold rating and $27 target at Jefferies. While CA is being looked at by private-equity players, Jefferies believes shares are richly valued.

• DSW Inc (NYSE: DSW) was initiated with a Sell rating and $30 target at Wedbush, as they believe the consensus' 3-5 year annual EPS growth rate of 20% to be too high.

OTHER INITIATIONS:

• Credit Suisse started Southern Union Co (NYSE: SUG) with an Outperform rating and $33 target.

• Needham assumed coverage of Ikanos Communications Inc (NASDAQ: IKAN) with a Hold rating, as the firm believes a rebound of VDSL spending is unlikely until the second-half of 2007.

• Morgan Joseph is positive on Denny's Corp (NASDAQ: DENN) improving operations and started the food retailer with a Buy rating and $7 target.

• Jefferies started HMS Holdings Corp (NASDAQ: HMSY) with a Buy rating and $25 target. The firm believes HMS Holdings is positioned to serve the needs of government healthcare programs.

• Credit Suisse initiated WebEx Communications Inc (NASDAQ: WEBX) with a Neutral rating at $50 target based on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).