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PowerRatings Best of the Requests: LNCR, ETE, IFF

By David Goodboy | TradingMarkets.com
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The Long Term Power Rating Community was very active this week with stocks that spanned the spectrum from a 1 to a 10 rating.  However, interestingly, 8 out of 10 of the stocks that hit the Most Requested Screener are top ranked stocks with an 8-10 rating. 

The community is definitely focused on searching out top performers this week.  Our studies have shown that stocks with a 9 Long Term Power Rating have a 79.1% chance of closing higher one year later, and those with the coveted 10 rating possess an 81% chance of being higher one year later.  On the other hand, those with low 1, 2, or 3 Long Term Power Ratings have proven to simply be too volatile, thus risky for conservative, prudent long term investment. 

Our studies were done over the last 12 years, across most market conditions in a statistically sound manner.  The current volatile and uncertain market environment makes knowing the Long Term Power Ratings mission critical.   Let’s take a closer look at several of the “Most Requested”.

Lincare Holdings (LNCR | Quote | Chart | News | PowerRating) - A Florida based home health care company that has earned a 9 Long Term Power Rating. Fundamentally the company looks strong with an 8% increase in second quarter revenues and a 31% increase in diluted Earnings Per Share.  The aging population in the Southern United States will likely continue to grow at a relatively fast rate providing a continued stream of clients for the company.  Technically, the company has been in a strong uptrend since the end of June, 2008 rising above both the 50 and 200-day Simple Moving Averages.  A bullish leaning crossover occurred earlier in the week on the 50/200-day SMAs.  The 9 rating, the fundamental picture and technical outlook makes LNCR a stock to consider for your long term portfolio.

Energy Transfer Equity (ETE | Quote | Chart | News | PowerRating) - This 9 Long Term Power Rated Texas based limited partnership operates natural gas pipelines and processing plants. Their net income was up 35% in the second quarter.  Technically, the company has jumped up off of its late August lows and is trading above the 50-day Simple Moving Average.

International Flavors & Fragrances (IFF | Quote | Chart | News | PowerRating) - This 8 Long Term Power Rated stock was the featured stock several weeks ago.  They are a behind the scenes type of company creating flavors and fragrances that improve the quality and taste of many consumer products.  The second quarter results were strong with sales up 11% and a 13% increase in Earnings Per Share.  Technically, the stock tested the 50-day Simple Moving Average on Tuesday, and is now moving up off of it.  It is up off of its early August lows and looks healthy technically.

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


>> See more articles by David Goodboy
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