Power Ratings Across The Indexes: IBM, PFR, ADBE, SIAL, D, MDT

The market uptrend appears to be continuing today, despite an aggressive sell off on Friday prior to the Labor Day Holiday. The DJIA is currently about 100 points away from the short-term high set on August 11th. No one really knows what is going to happen in the market next. Long term investors need a tool to build a portfolio of the stocks most likely suited for gains over the next year.

Twelve years of extensive, statistically valid studies have proven our Long Term Power Ratings to be exactly what long term investors need to evaluate and choose stocks for their portfolios. The proprietary calculating engine behind the Power Ratings is constantly scanning the universe of stocks ranking them in a 1 to 10 rating system.

Our studies have clearly proven that stocks with a 9 Long-Term Power Rating have a 79.1 % chance of being higher one year later. Those that earned a 10 rating possess an 81% chance of being higher one year later. 8 rated stocks are also likely to outperform their brethren over a year time frame. 4,5,6,7 rated stocks have proven to simply perform with the market. The low rated 1, 2 and 3 ranked stocks have proven to simply be too volatile thus risky for prudent long term investment. Although, sometimes these jumpy stocks can produce stellar returns our studies have proven that they are far too dangerous for conservative, long term investment. Let’s take a closer look at several top ranked stocks across the 3 major indexes.

The DJIA

International Business Machines (IBM | Quote | Chart | News | PowerRating) - This old school computer maker has transformed itself into a powerhouse, innovative global enterprise. It’s earned an 8 Long-Term Power Rating and holds the number one position in worldwide server revenue. Technically, the stock has been trading in a channel between 120 and 130 recently.

Pfizer (PFE | Quote | Chart | News | PowerRating) - This 8 rated drug company has recently announced strong 2nd quarter results and reaffirmed positive guidance for the rest of 2008. Technically, price is above the 50-day Simple Moving Average but below the 200-day Simple Moving Average at $20.22

Nasdaq

Adobe Systems (ADBE | Quote | Chart | News | PowerRating) — A 7 rated software company that announced strong second quarter results with 19% revenue growth. The CEO stated that they are well positioned for solid growth for the rest of the year affirming guidance. Technically, the stock is trading above both the 200 and 50-day Simple Moving Averages.

SigmaAldrich (SIAL | Quote | Chart | News | PowerRating) - This biochemical Life Science company earned a 7 rating. The company recently announced a dividend and they just hit record sales numbers in the second quarter. A 16.7% increase in diluted Earnings Per Share also ads to the fundamental appeal of this firm. Technically, the stock has bounced off its 50-day Simple Moving Average and is in the process of breaking the 200-day Simple Moving Average on the upside.

S&P 500

Dominion Resources (D | Quote | Chart | News | PowerRating) — A 9 rated energy company that just received approval to build a coal and biomass plant in South West Virginia. Their earnings were up in the second quarter compared to last year and the CEO reaffirmed positive guidance for the rest of 2008. Technically, the stock has been in an uptrend since the first week in August and is above its 200 day Simple Moving Average.

Medtronics (MDT | Quote | Chart | News | PowerRating) - This medical equipment maker earned a 9 Long-Term Power Rating. It has been in a steady uptrend since November, 2007. They recently announced that first quarter revenue was up 19%.

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