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Yesterday, we experienced the largest one day point gain of all time in the major stock indexes. Massive government intervention appears to lifting the world's economic system out of its downward spiral. However, 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 PowerRatings to be exactly what long term investors need to evaluate and choose stocks for their portfolios. The proprietary calculating engine behind the PowerRatings 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 PowerRating 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. Eight rated stocks are also likely to outperform their brethren over a year time frame. Stocks rated 4, 5, 6, 7 have proven to simply perform with the market. The low rated 1, 2 and 3 ranked stocks have proven to 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
Proctor & Gamble (PG | Quote | Chart | News | PowerRating) - This giant personal products company is the third ranked member of the Dow Jones Industrial Average. They earned a 7 long term PowerRating as the stock has just bounced off of the 55 range on the chart, and it appears that the uptrend may be restored. They have recently confirmed earnings projections of 8 to 10% growth.

Johnson & Johnson (JNJ | Quote | Chart | News | PowerRating) - The number one rated stock from the Dow 30 Index with an 8 long term PowerRating. The New Brunswick, NJ based drug manufacturer posted an 8.7% increase in sales and a 12.4% increase in earnings per share for the 2nd quarter. Technically, market conditions appear to have knocked this stock down to the 52 level where it has found a base, bouncing back up hard.

The Nasdaq
Paychex (PAYX | Quote | Chart | News | PowerRating) - Has earned a 5 rating. Price has bounced off of a low near 26. It has recently announced an increase in earnings, revenues, and income making this 5 rated stock one that should be watched closely for upgrades.

Amgen Inc (AMGN | Quote | Chart | News | PowerRating) - This venerable biotechnology company is the second highest ranked stock in the Nasdaq. It has earned a 7 long term PowerRatings. 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, price is bouncing off the 45 level that appears to be support.

The S&P 500
Medtronics (MDT | Quote | Chart | News | PowerRating) - This medical equipment maker earned an 8 long term PowerRating. It is the fourth highest ranked stock in the index. They recently announced that first quarter revenue was up 19%. Technically, the stock was knocked down a bit, but appears to be in the process of recovery.

Baxter International (BAX | Quote | Chart | News | PowerRating) - A medical equipment and supply company that has earned an 8 long term PowerRating. They recently posted a 31% second quarter earnings per share increase and have raised their full year guidance. Technically, the company appears to have hit a bottom around 52 and has bounced up from this level.

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