Today's PowerRatings Stocks on the Move

U.S. stocks eked out modest gains on Tuesday despite high oil prices and weak housing starts. Oil prices remained over $69 and Commerce Department data showed that housing starts for May dropped 2% vs. April. Stocks were also hurt by weak results at Best Buy (BBY@BBY | Quote | Chart | News | PowerRating), which has a PowerRating (for Investors) of 7. The best news for stocks came from the bond market, with the benchmark 10-year rate easing to 5.09% Tuesday vs. 5.14% on Monday.

On Wednesday investors will be focused on earnings from Best Buy's rival, Circuit City (CC@CC | Quote | Chart | News | PowerRating) and from Morgan Stanley (MS@MS | Quote | Chart | News | PowerRating). Circuit City has a PowerRating (for Investors) of 6 and Morgan Stanley has a PowerRating of 7. (A rating of 10 is highest.) In addition, Reuters confirmed that a deal is underway for Sempra Energy, discussed below.

This morning we highlight some of the market's winners and losers, with a focus on stocks with high PowerRatings (for Investors). Our data from 1995 through 2006 show that on days that stocks returned 20.2% over the next year on days when they had PowerRatings of 10. So these stocks are a good place to start for investors who seek growth and safety.

Stocks with a PowerRating of 10 :

• Sempra Energy (SRE@SRE | Quote | Chart | News | PowerRating) rose 5.2% on Tuesday to $62.03. The stock jumped after reports that the Royal Bank of Scotland plans to buy Sempra's commodity trading business. Sempra operates utilities and provides gas and electric services to 29 million people throughout North America, Europe, and Asia. The firm has a market capitalization of $16.4 Sempra Energy stock has a PowerRating (for Investors) of 10, the highest rating. The stock has risen 10% since it was upgraded to a PowerRating of 10 on January 22.
  

• Plains All American Pipeline (PAA@PAA | Quote | Chart | News | PowerRating) rose 3% on Tuesday to close at $63.25. The shares benefited from continued strength in energy stocks. In addition, the company raised its earnings guidance on May 29, and analysts have revised earnings estimates upwards. Plains All American gathers, stores and markets natural gas through 15,000 miles of pipelines in the U.S. and Canada. The stock has a market capitalization of $6.9 billion, and the shares have risen 16.6% since they were upgraded to a PowerRating of 10 on January 25.
  

• Dresser-Rand Group Inc. (DRC@DRC | Quote | Chart | News | PowerRating) rose 1.9% on Tuesday to $39.90. There was no specific news that drove the company higher. The stock may have gotten a boost from a rise in one of its peers, since the shares of General Electric (GE@GE | Quote | Chart | News | PowerRating) rose 3.2% on Tuesday. The shares may have also benefited from enthusiasm for energy stocks since over 90% of the firm's revenues come from the oil and gas industry. Dresser-Rand has a market cap of $3.4 billion. The company makes pumps, gas and steam turbines, compressors, and other processing equipment. The stock has a PowerRating (for Investors) of 10. The stock has risen 24.5% since it was upgraded to a PowerRating of 10 on April 13.

Wednesday had its share of losers, too. We have a complete list of them under Stocks to Avoid, and these are stocks with a low PowerRating (for Investors). History shows that these stocks tend to underperform the market over the next twelve months.

Harvest Natural Resources (HNR@HNR | Quote | Chart | News | PowerRating) dropped 3.9% Tuesday to close at $12.97. This follows a massive gain of 37.5% on Monday. Harvest Natural had gotten a boost from good news about its properties in Venezuela, where it explores for oil and gas. Although the deal gives the Venezuelan government a significant stake, the news was a relief for investors, who had been prepared for the worst. The firm has a market cap of $490 million and a PowerRating (for Investors) of 3. The stock has risen 5% over the last twelve months.

Rob Martorana is Director of Content for PowerRatings.net.

Rob was most recently at TheStreet.com as the Director of Content for Professional Products. Robert has spent 22 years on Wall Street, and was a portfolio manager and head of U.S. equity research at Barclays Private Bank. Robert also managed small-cap stocks at Schroder Capital Management International, was an equity analyst at Vontobel USA, and was an editor and senior industry analyst for The Value Line Investment Survey.