PowerRatings Across The Indexes: MO, JNJ, CHKP, TEVA, WYE, ABT

Stocks are truly topsy turvy this week. Monday saw a nice rally across the board during the Madoff sentencing. However, today, quite the opposite is occurring as consumer confidence fell and jobless rates climbed. Although the bulls are still clearly in control, this is one difficult market to call.

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 possesses 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 Power Ratings 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:

The DJIA

Altria Group (MO | Quote | Chart | News | PowerRating) - This so-called purveyor of vice and sin has been awarded a 7 Long Term PowerRating. They are most famous for owning cigarette maker, Phillip Moris, 20 labels of premium wine, and SAB Miller Plc., as well as other tobacco and alcohol related concerns. The first quarter of 2009 was decent with diluted EPS up 5.4% and their cigarette segments income was up over 10%. The company reaffirmed 2009 guidance with an expected growth rate of 3 to 6%. Technically, price has been channeling between $16.20 and $17.20/share. It is tightly between the 50 and 200-day SMA's currently at 16.55 and 16.26, respectively.

Johnson & Johnson (JNJ | Quote | Chart | News | PowerRating) - This stalwart of the Dow has also been awarded a 7 Long Term PowerRating. 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 out above both the 50 and 200-day Simple Moving Averages which are 54.49 and 56.28, respectively.

Nasdaq 100

Check Point Software (CHKP | Quote | Chart | News | PowerRating) - A data security and management solution company that has climbed to a 7 Long Term PowerRating. They have announced record financial results in the first quarter of 2009. Revenues were up 2%, Operating Income was up 11% and EPS gained by 6%. Technically, shares are channeling between $22.00 and $24.00/share. Price is nicely above the 200-day SMA but right on top of the 50-day SMA as it churns in a narrow range.

Teva Pharmaceuticals (TEVA | Quote | Chart | News | PowerRating) - This Israeli based maker of generic drugs remains the number one ranked stock in the Nasdaq 100. It has earned a 7 Long Term PowerRating. Moody's just upgraded their rating from stable to positive. First quarter results were strong with Net Sales up 22% and Non GAAP Net Income was up 4%. However Non GAAP EPS was down 4% due to the Barr purchase. Technically, shares have been in a ripping uptrend, trading above both the 50 and 200-day SMA's. Price is pushing toward $50.00/share after falling back to near the 50-day SMA.

S&P 500

Wyeth (WYE | Quote | Chart | News | PowerRating) - This major drug maker is the highest ranked stock in the S&P 500 and the entire Long Term PowerRating universe with the highest possible rating of 10. First quarter results were mixed with declining Revenue due to currency exchange but increasing diluted EPS. The second quarter results will be released on July 23rd. Technically, shares are in an uptrend but a double top may be forming around the $45.00 range.

Abbott Laboratories (ABT | Quote | Chart | News | PowerRating) - This major drug maker has earned a 7 Long Term Power Rating. It is the third highest ranked stock in the S&P 500. They just reported a 10.1% increase in worldwide sales, an annual EPS growth of 14.0% and nine new regulatory approvals for 2008. The company reconfirmed a strong outlook for earnings in 2009.  They just declared their 342 consecutive quarterly dividend of 40 cents/share. Interestingly, Centocor Ortho Biotech was just awarded a huge $1.67 billion dollar verdict against Abbott Labs in a patent infringement suit. Centocor Ortho Biotech is a wholly owned subsidiary of our PowerRated stock, Johnson & Johnson.   Technically, price has been uptrending since May 1st but has hit resistance at $48.00/share where a potential double top has formed.

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.