PowerRatings Across The Indexes: JNJ, BA, TEVA, IACI, WYE, LH

Monday's strong stock rally is continuing today. Super positive news from the housing front and final resolution of the General Motors situation extended the optimism into Tuesday morning.

It clearly appears that the bulls are in control. The improving economic underpinnings combined with government assistance are fertile ground for growing stocks. It's important to note that markets never go straight up, even in the best of times, therefore picking the right stocks is critical for your long term portfolio.

Long term investors need proven tools to keep them in the right stocks to benefit from the potential brewing bull market. Our Long Term PowerRatings are one such dynamic tool. This tool fills the niche by being built upon 13 years of extensive, statistically valid studies across most market conditions. Our studies indicate that stocks earning a 10 Long Term PowerRatings have an 81% chance of being higher one year later.

Those with a 9 rating possess a 79.1% chance of trading higher one year later. Conversely, stocks that are awarded low ratings of 1 or 2 have clearly shown to be simply too volatile and risky for prudent, conservative long term investors. You can clearly see the statistical advantage in building a long term portfolio consisting of 9 and 10 rated stocks, while avoiding the lower ratings. Interestingly, the Long Term PowerRatings are starting to increase across the board signaling the worse may be over. Here are several Long Term PowerRated stocks from each of the 3 major indexes that may be worth a deeper look:

DJIA

Johnson & Johnson (JNJ | Quote | Chart | News | PowerRating) - This company remains the highest ranked stock in the DJIA with an 8 Long Term PowerRatings. In April, the major drug maker announced a 6.5% dividend increase. 1st quarter results indicate declines across the major fundamental metrics. Sales were down 7.2%, negative currency impact of 12.6% and Net Earnings took a 2.5% hit. However, EPS matched last year at $1.26 and the company reconfirmed its earning guidance of $4.45 to $4.55/share for 2009. The CEO, William Weldon, sounded very optimistic about 2009 despite the slightly negative results. Technically, price has burst our above the 50-day SMA and is hitting resistance at $56.00/share. The 200-day SMA is resting at 57.63 and is the next hard technical resistance level.

Boeing (BA | Quote | Chart | News | PowerRating) - This 5 Long Term PowerRated aerospace company specializes in commercial aircraft, satellites, missile defense, military aircraft and human space flight among other related areas. They employ over 160,000 people and are considered to be the world's leader in the aerospace field. The company just announced an annual dividend of .42 cents/share, however has reported less than stellar first quarter results. EPS was down 47% mainly due to the commercial aircraft division's issues with 747's. Fortunately, revenues were up 3% and they have a $339 billion dollar order backlog which should provide business into the future. Technically, despite the slowing fundamental picture, shares have been uptrending since March 9th recently bursting out above the 200-day SMA.

Nasdaq

Teva Pharma (TEVA | Quote | Chart | News | PowerRating) - This stock remains the number one ranked stock in the Nasdaq index with a 7 Long Term PowerRatings. The firm is headquartered in Israel and is the world's largest maker of generic drug products. First quarter 2009 results have been very strong with a 22% increase in Net Sales and a 4% improvement in GAAP income. This is despite negative U.S. Dollar strength adversely effecting sales. Technically, price is above both the 50 and 200-day SMA and has surged higher over the last several days. A double top may be forming at $46.50/sharer daily resistance level.

Interactive Corp (IACI | Quote | Chart | News | PowerRating) - A 6 ranked Long Term PowerRated stock in the internet sector. They just re-launched Ask.com, own the popular dating site Match.com and posted a 64% increase in operating income in the 4th quarter. First quarter 2009 has improved with a 93% increase in free cash flow and having $2 billion in cash and marketable securities. Shares have been uptrending since a May 18th low and are trading above both the 50 and 200-day SMA's.

S&P 500

Wyeth (WYE | Quote | Chart | News | PowerRating) - A global pharmaceutical concern earning an 8 Long Term PowerRatings. The first quarter resulted in a net revenue decrease of 6%. However, if one removes the negative foreign exchange impact, they increased by 2%. Strong sales from core product franchises provided the company a great start into 2009. The charts reflect the optimism with shares being in an uptrend since April 27th. The 50-day SMA is above the 200-day SMA at 42.68 and 38.81 respectively. However, resistance appears at the $45.00/share level with 2 failed attempts at breaking through.

Laboratory Corp of America (LH | Quote | Chart | News | PowerRating) - A 7 Long Term PowerRated medical company.   This medical diagnostic and testing company had strong results in the first quarter of 2009. Net Earnings, EPS and Revenues showed improvement. CEO David King reiterated 2009 focus of obtaining new customers, maintaining price and controlling costs. He is upbeat about the future prospects of the company. Technically, shares have dropped off a mid May high but have found support at the 50-day SMA now at $61.28/share.

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 Business Development for a New York City based multi-strategy fund.