New book by Larry Connors Click here Improve your trading - See how
 |
|
Receive Alerts Free For One Week! Short Term PowerRatings Use PowerRatings every day to find the stocks for tomorrow to focus on and the ones to avoid. Sign Up Now >>
Long Term PowerRatings
Gary Kaltbaum Intraday Breaking Setups
Kevin Haggerty's Professional Trading Service
|
| TradingMarkets.com
Stocks that active investors have been studying over the past 24-hours at PowerRatings.net include the world's most popular soft drink company, and a number of sub-par, low PowerRatings stocks in otherwise top-rated industries.
It is little surprise that investors and long-term traders are turning their attentions toward Coca Cola (KO@KO | Quote | Chart | News | PowerRating). Analysts recently upgraded Coca Cola after determining that the company was likely to benefit greatly from increased sales overseas - especially in Latin America.
Coca Cola has a Long Term PowerRating of 8. Our research, involving thousands and thousands of simulated stock trades between 1995 and 2007, indicates that stocks with Long Term PowerRatings of 8 have been higher one year later more than 74% of the time. Compare this to the average stock, which has been higher less than 68% of the time.
Coca Cola is the highest PowerRating stock in the Beverages - Soft Drinks industry, which has an "average" PowerRating of 6.
Coca Cola is also the only high PowerRating stock in our Best of the Requests list for today. And while there are a number of low, Long Term PowerRating stocks also on today's list, what is interesting is that these low PowerRatings stocks often come from industries with high PowerRatings. Does this mean that we can go straight to those industries and find better stocks than the ones investors are currently researching?
Let see what we find. For example, investors were doing some PowerRatings research on ConocoPhillips (COP@COP | Quote | Chart | News | PowerRating) which has an "average" Long Term PowerRating of 6, but belongs to the 10-rated Major Integrated Oil and Gas industry. Surely, there is a higher rated stock in this top-rated industry than ConocoPhillips, right?
You better believe it. Looking at the list of stocks that make up the Major Integrated Oil and Gas industry, we find a stock like Chevron (CVX@CVX | Quote | Chart | News | PowerRating) which has a Long Term PowerRating of 8. We even find three stocks in this industry with Long Term PowerRatings of 7 which, while not the sort of truly high Long Term PowerRatings we prefer to see in stocks, still represents a superior opportunity - all things considered - to a 6-rated stock like ConocoPhillips.
One more example. Investors were curious about Broadcom (BRCM@BRCM | Quote | Chart | News | PowerRating), according to our PowerRatings Most Requested list. However, Broadcom has a Long Term PowerRating of 3 - a rating that suggests investors should "consider avoiding" the stock. At the same time, Broadcom belongs to an industry group - Semiconductors - Integrated Circuits - with an Industry PowerRating of 8. This suggests that there are better stocks for active investors in this group. Can we find them?
There are no high Long Term PowerRatings articles in this industry group. However, for active investors who feel that they have to have a semiconductor stock in their portfolio, there are clearly superior choices to Broadcom. Perhaps the best alternative is the 7-rated Micrel Inc. (MCRL@MCRL | Quote | Chart | News | PowerRating), though there are five other stocks which, while only earning Long Term PowerRatings of 6, are still better bets than a 3-rated stock like Broadcom.
Looking for more long-term solutions to your investing problems? Don't let the volatility of this market lead you to miss out on stocks you'll be glad to have bought a year from now.
| Click here to get a copy of our special, Free Report on the "5 Secrets to Successful Stock Investing," |
Learn what you need to know as an active investor looking to invest in companies with a history of financial strength and a track record for growth. Click the link above or call us at 888-484-8220 extension 1 to get your copy of the "5 Secrets to Successful Stock Investing" today!
David Penn is Senior Editor for PowerRatings.net.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
