Best Four Opportunities in the Dow--Right Now!

When you hear talk of market weakness, one of the first things you should to is point your browser to PowerRatings.net.

While other long-term traders and investors are scaring themselves into selling their shares when markets move lower, traders familiar with our PowerRatings know that market weakness is not a reason to sell, but an opportunity to get out your shopping lists and think about buying.

This morning, our Long Term PowerRatings are reflecting a number of opportunities in some of the best-known, widely-traded and invested in stocks in the world. Of these numerous stocks, four sit at the top of the Dow Jones Industrial Average as the best opportunities for investors looking to add to their stock portfolios--or to build a stock portfolio from scratch.

All of the four Dow stocks in today's discussion have PowerRatings of 9. Our research, based on thousands and thousands of simulated trades going back to 1995, shows that 9-rated stocks are among the stocks most likely to be higher after one year. Specifically, we found that stocks with PowerRatings of 9 have been higher one year later more than 79% of the time. Compare this to the average stock, which has been higher one year later less than 68% of the time since 1995.

Not only have 9-rated stocks been more reliable than the average stock, but also these high PowerRatings stocks have tended to produce better returns after one year on average compared to most stocks. While the average stock has gained between 12-13% after a year, stocks with PowerRatings of 9 have gained, on average, more than 18%.

Advantage: high PowerRatings stocks.

Let's take a look at our four, high PowerRating Dow stocks for the day, all of which represent excellent opportunities right now for investors and long-term traders looking for stocks that will higher in a year's time.

Procter & Gamble (PG@PG | Quote | Chart | News | PowerRating) has been a high PowerRating stock for months, maintaining its attractiveness as an investment or long-term trade even its price as varied from as high as $74 in December 2007 to as low as $63 in late January 2008. The stock is currently lurking below its 200-day moving average in an increasingly tight consolidation between $64 and $68.

Has there been a blue chip stock that has had a better past 30 days than Walt Disney Company (DIS@DIS | Quote | Chart | News | PowerRating)? Shares of Disney fell as low as $27 in mid-January, after trading as high as $34 in December. But since mid-January, Disney has been on a true tear, rallying to regain almost all of its losses from the December to January correction. The stock is now en route to a test of resistance at its 200-day moving average at the $34 level.

When it comes to "good houses in good neighborhoods" a stock like Johnson & Johnson (JNJ@JNJ | Quote | Chart | News | PowerRating) is hard to beat. Not only does Johnson & Johnson feature an impressive PowerRating of 9. But also the stock belongs to an industry group, Major Drug Manufacturers, that is top-heavy with high PowerRatings stock such as fellow 9-rated name, Abbott Laboratories (ABT@ABT | Quote | Chart | News | PowerRating), as well as 8-rated stocks like Eli Lilly (LLY@LLY | Quote | Chart | News | PowerRating), Bristol-Meyers Squibb (BMY@BMY | Quote | Chart | News | PowerRating), Novartis AG (NVS@NVS | Quote | Chart | News | PowerRating), and Pfizer (PFE@PFE | Quote | Chart | News | PowerRating).

Johnson & Johnson has one of the more interesting PowerRatings charts of all the stocks in today's discussion. Johnson & Johnson had an excellent PowerRating of 9 throughout late November and December. However the stock's PowerRating was dramatically downgraded in the final days of 2007 as the stock began moving sharply higher.

Time to buy or time to sell? Once again: advantage PowerRatings. After rallying above $69 per share in the first half of January, Johnson & Johnson's PowerRating downgrade finally caught up with it as the stock fell from the high 60s to the low 60s by late January.

Since then, shares of Johnson & Johnson have oscillated between $61 and $64, as the stock has moved higher to test its 200-day moving average for resistance going into February.

Last, but certainly not least, Coca Cola (KO@KO | Quote | Chart | News | PowerRating) was just a part of our Featured Stock Spotlight last week. The stock, like some of the others in today's discussion, has also been a high PowerRating stock since the fall of 2007, when its PowerRating actually climbed to as high as a perfect "10."

Since then, Coca Cola has pulled back from the mid-low $60s to the mid-low $50s. The stock since late January has found consistent support on the back of its 200-day moving average. The stock has moved down in PowerRating from its perfect 10 to a 9 over the past three sessions, which could reflect growing interest in the stock on the part of investors and long-term traders.