Power Rated Stocks Across the Indexes

Long Term Power Ratings locate stocks expected to outperform across the 3 major indexes. Our studies indicate that stocks with a 9 rating have a 79.1% chance of being higher one year later. Those with a 10 rating have been proven to have an 81% chance of trading higher one year later. On the flip side, those stocks that receive only a 1, 2, or 3 rating have proven to be too volatile and risky for longer term investment purposes. The statistically valid studies span 12 years in most market conditions making them something every trader should look at prior to choosing stocks for investment. Here are several stocks worth watching from each of the 3 major indexes:

DJIA

Coca Cola (KO | Quote | Chart | News | PowerRating) - This soft drink giant was awarded an 8 rating in an industry that garners a Industry Power Rating of 10. They recently announced a 19% earnings per share increase, sales volume is up, and operating income is up 18%. It’s important to note that the 19% earnings increase is due to considering items that impact compatibility. If this was not considered, a loss of 24% follows. Technically, the stock has been in a slight uptrend since the first week in July.

International Business Machines (IBM | Quote | Chart | News | PowerRating) jumped from an 8 to a 9 Long Term Power Rating. The sector only has a 5 rating, so IBM is clearly outpacing its brethren. The company is constantly expanding and innovating to keep up with the ever changing technology world. It has been in a steady uptrend in 2008 and price has increased over 20% this year. Expansion and success into emerging markets appears to be the prime driver for this sector leader.

AT&T (T | Quote | Chart | News | PowerRating) - Revenue has been in a steady uptrend since 2003 for this communication icon. It has earned an 8 rating in an industry that has a Long Term Power Rating of 9. They just signed a large contract with Boeing and technically the stock may just be coming off of a bottom here.

Nasdaq

Amgen Inc (AMGN | Quote | Chart | News | PowerRating) - This Biotech company is heartily outperforming its sector that has a 7 rating. Earnings have increased by 2%, revenue by 1% and full year revenue guidance was raised from $14.2 billion to $14.6-14.9 billion. The CEO stated that the first 6 months of 2008 showed stability and they are very pleased with the outcome of various tests on new drug products. Technically, the stock has broken out of a base formed in April, May, and June and a nice uptrend has been in place since July.

Cephalon (CEPH | Quote | Chart | News | PowerRating) maintains the top power rating in the Nasdaq 100 of 8. It matches the sector rating of 8 and has recently announced great results with new drug products. They are maintaining positive guidance for 2008. It has been trading in almost perfect channel between $60 and $80/share.

Linear Technology Corp (LLTC | Quote | Chart | News | PowerRating) - This California based semiconductor company has an 8 Long Term Power Rating in a sector with a 9 rating. It has just announced record quarterly and annual revenues, as well as earnings per share. Over the next 2 years, they are planning on buying back up to 20 million shares of stock. These are very positive fundamentals for LLTC. Technically, the stock has appeared to have bottomed around 30 and is bouncing up.

S&P 500

International Flavors and Fragrances (IFF | Quote | Chart | News | PowerRating) -This New York City based 10 rated stock in an industry rated 10 creates fragrances and flavors for other companies to use in their products. It has had double digit increases in adjusted earnings per share and climbing sales numbers. Technically, the stock seems to basing around the 40 level.

Proctor and Gamble (PG | Quote | Chart | News | PowerRating) - The consumer products giant has a Long Term Power Rating of 9. Stocks with a 9 have demonstrated a 79.1% chance of being higher one year later. This company has been paying dividends without interruption since the 1800’s and has recently declared another one of $0.40 payable on or after August 18th 2008. It is climbing off of its early July bottom on the chart and looks poised for greater gains.

Baxter International (BAX | Quote | Chart | News | PowerRating) - The medical supply company is clearly outperforming its 6 rated sector with a Power Rating of 9. They have had strong second quarter results and have recently declared a dividend. The stock has been in a slow steady uptrend since March and is definitely worth a close look if you are considering adding to your portfolio.

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 Goodboy is Vice President of Marketing for a New York City based multi-strategy fund.