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PowerRatings Upgrades: WSH, MKC, DNEX

By David Goodboy | TradingMarkets.com
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Despite the recent market volatility, some stocks are being upgraded in the Long Term Power Ratings universe. One moved from 8-9, others from 7-8 , and still more moved up a notch all along the spectrum. Remember, our statistically valid studies clearly indicate that stocks with a 9 rating possess a 79.1% chance of closing higher one year later.

On the other hand, those with a low rating of 1 or 2 have proven to simply be too volatile and risky for the prudent long term investor. Although these low rated, volatile stocks can and do occasionally explode on the upside, they just contain too much risk for the investor.

A well diversified portfolio of 9 and 10 rated stocks has proven itself to be the safest and wisest bet for long term appreciation. Let's drill down into several of today's upgrades:

Mccormick & Company (MKC | Quote | Chart | News | PowerRating) - This spice, flavoring and specialty food company moved from an 8 into the 9 rating today. It is outperforming the Packaged Food Industry sector that has a Long Term Power Sector Rating of 8. MKC just completed an acquisition of its competitor Lawry's from Unilever.

In addition, on Thursday, they reported strong growth and profits reflected in an 11% increase in sales and an 11% increase in Earnings Per Share. Technically, the stock has been in an uptrend since July 1 and is well above both the 50 and 200 day Simple Moving Average.

Dionex (DNEX | Quote | Chart | News | PowerRating) - The Nasdaq-traded maker of Chromatography equipment used in the petrochemical and environmental communities jumped from a 7 to an 8 Long Term Power Rating today. They are reporting strong sales growth worldwide with a jump of over 40% in Asia. It is strongly outperforming its Power Rating Sector rating of 6 and price has bounced off the July lows. Positive guidance from the CEO combined with the upgraded Long Term Power Rating makes DNEX a strong candidate for your long term portfolio.

Willis Group Holdings (WSH | Quote | Chart | News | PowerRating) - Here is an upgraded Power Rated stock that is underperforming its sector Power Ratings. It just climbed from a 7 to an 8, but the sector has the coveted 10 rating. The stock is in the Property and Casualty Insurance sector. The company reported 7% growth in the 2nd quarter and what it calls a "strong" 3% organic growth rate in commissions and fees. The stock appears that it may be bottoming here on the chart. The high sector ratings combined with the upgrade and positive company results makes WSH a good stock to watch.

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 Marketing for a New York City based multi-strategy fund.


>> See more articles by David Goodboy
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