New ETF Book by Larry Connors - Click here to read more
 |
|
Receive Alerts Free For One Week! Short Term PowerRatings Use PowerRatings every day to find the stocks for tomorrow to focus on and the ones to avoid. Sign Up Now >>
Long Term PowerRatings
Gary Kaltbaum Intraday Breaking Setups
Kevin Haggerty's Professional Trading Service
|
The Fed decided not to move interest rates from their all time lows yesterday but the market reacted in a severe negative manner. Interestingly, stocks anticipated the decision by creeping higher into it, then once it was made official the selling waves started. It was a classic buy the rumor, sell the news scenario. This move caught many traders and investors off guard. The question on every investors mind is will the bulls stay in control or will the bears have their day in the sun? Truth is no one really knows for sure.
One thing is for certain; our Long Term PowerRatings have been creeping ever higher across a variety of stocks and sectors. For those of you unfamiliar with our Power Rating method is based upon 12 years of extensive, statistically valid studies spread across most market and economic climates. The results are downright impressive resulting in an easy to use, numerical rating system that can pinpoint those stocks that truly have the best odds of top performance over the longer term. Stocks that have earned a 10 Long Term PowerRating have been proven to have a 81% chance of being higher one year later, those with a 9 rating possess a 79.1% chance of being higher one year later. Conversely, those with the lowest 1,2, or 3 ratings have shown to simply be too volatile, thus risky for prudent long term investment.
Due to the extreme volatility of the low rated stocks, of course, several will outperform, sometimes returning many fold percentages. However, 65% have been proven to lose money over a year time period. In fact, they lost an average of 5% of the year timeframe. Our studies clearly indicate that conservative, long term investors should avoid stocks with low Power Ratings and build a portfolio of those with high ratings.
Let's take a closer look at 3 of the top rated stocks today.
JM Smucker (SJM | Quote | Chart | News | PowerRating) - This packaged food company, perhaps best known for its jams and jellies, has earned a 10 Long Term PowerRating. It is the number one ranked stock on our most popular list today. In the early 2000's, they bought the JIF and Crisco brands from Proctor & Gamble giving the company leading positions in 7 food categories. They just added Folgers's Coffee to their portfolio which has been ultra successful so far. The fiscal fourth quarter was tremendous with an 81% increase in net sales, doubling of net income, a 19% increase in EPS and they increased fiscal 2010 estimates. A dividend of 35 cents/share was paid on September 1st. Richard Smucker, CEO, stated that they expect to continue to deliver long term growth and shareholder value. On the chart, price has been uptrending since May 1st and is trading above the 50 and 20- day SMAs. Price gapped higher to $55.00 plus/share then quickly dropped back to the 50-day SMA and has since bounced back forming a crude triple top.
Microsoft (MSFT | Quote | Chart | News | PowerRating) - This king of software companies is the second highest ranked stock on our most requested screener today with an 8 Long Term Power Rating. It has been creeping higher over the last several weeks. They are best known for the monster success of the Windows operating system and their founder Bill Gates. This fiscal year, ending in June, the major fundamental metrics were down across the board. However, they did up the dividend 7 cents. Technically, shares have been uptrending since mid June. However, they have exhibited a series of erratic bursts, gaps and falls during this time. $26.00/share appears to be solid technical resistance with price approaching this figure once again. Support appears at $24.00/share at the 50-day SMA.
Abbott Labs (ABT | Quote | Chart | News | PowerRating) - This old PowerRating favorite has earned a position as the third highest ranked stock on the most popular screener with a 7 Long Term PowerRating. 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 343 consecutive quarterly dividend and have several exciting products in the pipeline for approval and or release. Technically, price is above the 50-day Simple Moving Average and is currently hitting resistance at the 200-day SMA at $47.00/share.
| Click here to start your free, 7-day trial to our Short Term PowerRatings! |
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.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
