PowerRatings Best of the Requests

The Power Rating community has been looking at a wide variety of stocks in diverse industries this week.  Everything from banking, airlines, to heavy construction companies have appeared on the communities radar screens.  The market has truly been volatile and uncertain over the last several weeks. Long Term Power Ratings are designed to assist you in choosing stocks most likely to perform over the long term, while avoiding dog stocks.  Our studies clearly indicate that stocks that have earned a 10 rating have an 81% chance of being higher one year later.  Conversely, those awarded a low rating of 1, 2, or 3 have proven to simply be too volatile, thus risky for prudent long term investment for the conservative investor.  Building a portfolio with highly rated stocks while avoiding the lower ratings is one way to get an edge in stock portfolio design.  Let’s take a closer look at several of the most requested stocks this week:

Chevron (CVX | Quote | Chart | News | PowerRating) - This 7-rated oil company stock is in an industry that has earned a Long Term Power Rating of 10.  Their 2nd quarter income was up 11% and sales revenue also climbed nicely.  Technically, the stock appears to be basing between $80-$90/share.  Given the high rated nature of the sector, this stock is lagging in the ratings.  However, it’s a good one to watch closely for potential future ratings upgrades.

Jacobs Engineering (JEC | Quote | Chart | News | PowerRating) - A construction company that has earned a Long Term PowerRating of 6 in an industry that has an 8 rating.  Despite the slow down in the US economy, Jacobs’ numbers are strong.  They reported an increase of 47.3% in diluted Earnings Per Share for the 3rd quarter which is a record for the firm.  In addition, they have a backlog of work lined up for the near future.  Technically, the stock is at the lows of the year near $70.00/share.  Given the fundamental factors within the company, it may be in for improvement soon, I would watch it with a keen eye.

Freddie Mac (FRE | Quote | Chart | News | PowerRating) - Here is an example of a potentially highly volatile stock whose future is very uncertain.  It was assigned a 2 Long Term Power Rating matching its sector rating of 2.  This beat down mortgage giant has been in a severe downtrend since October, 2007 losing over 90% of its value.  There is even talk on the street about it losing 100% of its value should the Federal Government take it over.  Although nimble day traders may want to try to catch the inevitable short term jumps in price, it is a stock that prudent, conservative investors should avoid.

Victor Sperandeo. Gil Morales. Raghee Horner. Gary Kaltbaum. Steve Nison. These are just a few of the top traders in stocks, forex, options, futures and exchange-traded funds who will be speaking and working with traders just like you at TradingMarkets 2008. Don't miss the special event! Click here for more details!

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