Power Ratings Stock Spotlight: IFF

Today we are going to spotlight a truly under the radar, behind the scenes company that most readers use its products everyday, yet many have likely never heard of it. The company has achieved the highest Long Term Power Rating possible of 10 and resides in a sector known as synthetics that also earns a 10 rating.

Our extensive studies over the last 12 years have shown that stocks with a 10 rating have an 81% chance of being higher one year later. Long term portfolios built with 9 and 10 rated stocks have readily outperformed the market making the Long Term Power Ratings a crucial item to check prior to adding any stocks to your portfolio.

Ever wonder how the butter smell gets into margarine, the lemon smell gets into dish detergent or how fruit flavors get into the various quasi fruit beverages? The focus stock this week is the company that changes the way many consumer items smell and taste.

International Flavors and Fragrances (IFF | Quote | Chart | News | PowerRating). IFF has a diverse product base. From toiletries to dairy, from bubble gum to fabric care, it is very likely that this New York City based company supplied the producer with the ingredients to improve its the taste or smell. They have been in business for over 170 years and work with the world's leading brands. 70% of IFF's revenue comes from outside the United States and they have facilities in 30 countries making the "International" in their name truly meaningful. In the second quarter Sales are up 11% broken down with Flavor Sales up 15% and Fragrance Sales up 8%. This company appears to be growing steadily, is constantly innovating and is considered non cyclical.

Technically, price has recently bounced off of a low, breaking through the 50 day Simple Moving Average at $40.28/share but is still below the 200 day SMA at 43.57/share. Today, price is pushing past the 200 week SMA at 40.35 which many technical analysts consider critical for an uptrend to start.

IFF is definitely worth taking a close look at for a solid long term performer for your portfolio.

Best Wishes!

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