PowerRatings Upgrades: BTI, HEW, OMI

Stocks are climbing ever so closer to the resistance level marked on the Dow Jones Industrial Average at 9600. An early surge during the middle of the week session has pushed all sectors higher after a brief sell off at the open.

It's a tough call whether or not there is enough momentum and belief in the economic recovery to push the market above the mid term resistance levels. Will the bulls or the bears take control during this notoriously bearish month of September? Truth is, no one really knows for sure what the future holds. Therefore, savvy stock traders need proven tools to place the odds firmly in their favor when choosing stocks for their long term portfolios.

Tools that have proven to be effective regardless of market or economic conditions. Our Long Term PowerRatings are such a tool. The PowerRatings method is based upon 13 years of extensive, statistically valid studies spread across most market and economic conditions. 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 or 2 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% over a one year timeframe. Our studies clearly indicate that conservative, long term investors should avoid stocks with low PowerRatings and build a portfolio with high rated stocks.

Let's take a closer look at several of the upgrades today:

British American Tobacco (BTI | Quote | Chart | News | PowerRating): This cigarette company was just upgraded from an 8 to a 9 Long Term PowerRating. The last quarterly report showed 18% higher profits, 14% increased revenue and a 17% positive move in earnings per share. The CEO, Jan Du Plessis spoke very highly and positively about the future of the London based company. The firm has been uptrending since June 8th with a recent push above the double top formed at the $63.00/share level.

Hewitt Associates (HEW | Quote | Chart | News | PowerRating): This Illinois based human resources consulting and benefit company has obtained a PowerRatings upgrade from an 8 to a 9 rank. The firm experienced a great third quarter with a 34% increase in EPS and 4.10% growth in operating margin. However, revenues were down 6% with some negative currency transaction impact factored into the loss. CFO, John Pack, stated that they are increasing EPS guidance by 10 cents due to favorability in income and taxes. Technically, shares have been in a sharp untrend since early August. Price has hit resistance at $36.00/share and appears to be building a base on the $35.00/share level.

Owens & Minor (OMI | Quote | Chart | News | PowerRating): A medical equipment company that was just awarded with a Long Term PowerRating upgrade from an 8 to a 9 rank. The company beat the $2 billion dollar in revenue mark for the second quarter and income was up 13.6%. Strong fundamentals are reflected in the technical picture with an uptrend since early June. However, resistance may be evident at the $46.00/share range.

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.