Top PowerRatings Across the Indexes: KMB, BUD, PG, DIS, CEPH, PAYX

The S&P 500 takes top billing this week with a Long Term PowerRated stock of 10. The personal products company Kimberly Clark (KMB | Quote | Chart | News | PowerRating) has the honor of the highest possible rating. Our statistical studies clearly indicate that stocks that obtain a 10 rating are 81% more likely to increase in price one year later.

KMB not only has a 10 rating but it reported net sales increase of 11% and increases in every business unit, last week. Strong performance in emerging markets is credited with the positive results. Here is the chart for KMB and as you can see it's climbing off a low right now.

Another top rated stock in the S&P 500 is Anheuser-Busch (BUD | Quote | Chart | News | PowerRating). This 9 Long Term PowerRated stock has agreed to combine with InBev creating the largest beverage maker in the world. They have just increased the dividend by 12.1% and the stock has been in a ripping uptrend since April, 2008

Chart here

The DJIA also contains several top rated stocks this week. Another personal products company, Proctor and Gamble (PG | Quote | Chart | News | PowerRating) takes top billing with a Long Term PowerRating of 9. Stocks with a 9 have demonstrated a 79.1% chance of being higher one year later. This company has been paying dividends without interruption since the 1800’s and has recently declared another one of .40 cents payable on or after August 18th 2008. It is climbing off of its early July bottom on the chart and looks poised for greater gains.

Walt Disney (DIS | Quote | Chart | News | PowerRating) is another top rated DJIA stock, coming in with an 8 Long Term PowerRating. Its film division is turning out creative and box office successful movies. The company continues to innovate in the entertainment space making it an interesting choice for longer term investment. Technically, DIS price has bounced off the mid July lows and appear poised for an assault on the 50-day Simple Moving Average at 32.

The Nasdaq 100 Index contains an 8 rated stock and several have obtained the 7 rating. The Long Term PowerRating 8 honors go to the drug company Cephalon (CEPH | Quote | Chart | News | PowerRating). CEPH has just received really good news from a study on its TREANDA drug. It’s up over one dollar today, although it has been trading in a channel between 60-80 for some time. I would watch this channel for a breakout to trigger a longer term entry.

Paychex (PAYX | Quote | Chart | News | PowerRating) is another top rated Nasdaq 100 stock. It has a 7 rating. Price has bounced off of a low near 30 and a double bottom appears to be potentially forming on the daily chart. It has recently announced an increase in earnings, revenues, and income, making this 7 rated stock a strong candidate for the long term trader.

Best Wishes!

David Penn is Senior Editor for PowerRatings.net