Monday PowerRatings Upgrades: KMB, FPL, VVC

The Indian stock market ripped higher today after the Congress Party took control. The win knocked the Communists out, making way for free market reform. In fact, after climbing 17% circuit breakers kicked in closing trading on the highs of the day.

The U.S. stock market is following suit with a strong bullish move after better than expected earnings from Lowe's and optimism surrounding the housing figures. Our PowerRatings are climbing higher across the board supporting the notion that the bull market has returned. However, no one really knows for sure what will happen, despite the bullish signals.

A proven stock picking system is required to make sure you stay invested in stocks that are likely to appreciate over the long term. Regardless of what the future holds, it's critical to remember that within even within the most extreme overall market conditions one can locate pockets of relatively stable stocks that are likely to outperform over the long term. We have conducted studies and testing during the past 13 years to determine exactly what it is that distinguishes these winners from the herd of mediocre and downright loser stocks. The result of this extensive research into the inner nature of equities has been simplified into our PowerRatings ranking system.

This system rates stocks on a scale from one to ten based on the likelihood of them being higher one year forward. Stocks that have earned a 10 rating have an 81% chance of trading higher one year from now. Those with a 9 rating have proven to have a 79.1% chance of being higher a year later, and so on down the scale. Building a portfolio of top rated stocks and avoiding those volatile and risky ones on the bottom of the rating scale has proven to be a successful method across most market conditions.

Let's take a closer look at several stocks earning upgrades this week:

Kimberly-Clark (KMB | Quote | Chart | News | PowerRating) - This consumer product giant was just upgraded from a 7 to an 8 Long Term PowerRating. Net Sales were off by 6.6% and diluted Net Income was down slightly in the first quarter of 2009. This is due to the unfortunate effects of currency exchange, whereas, actual organic growth was approximately 3%. In fact, double digest organic growth took place in emerging and developing markets. The company just declared its regular quarterly dividend of .60 cents/share payable on July 2nd, 2009. They are a major brand name that has over 1.3 billion people using their products on a daily basis. Flagship brands like Kleenex, Scott, Pull-Ups, and Huggies are just part of their large and successful product line. Technically, shares have been uptrending since March 9th with price trading above the 50-day SMA but still below the 200-day SMA at 53.63. Resistance is currently in the $52.00/share range.

FPL Group (FPL | Quote | Chart | News | PowerRating) - Florida Power and Light is a regulated subsidiary of the FPL Group. They have just been upgraded from a 6 to a 7 Long Term PowerRating and announced strong first quarter results via their Next Era subsidiary. Adjusted Net Earnings Per Share climbed 18% and Lew Hay, the CEO provided very optimistic guidance into the rest of 2009. Technically, shares are trading above both the 50 and 200-day SMA's. However, resistance with a double top formation was created at $58.00/share.

Vectren Corp (VVC | Quote | Chart | News | PowerRating) - Another utility company that has just earned a Long Term PowerRating upgrade from 6 to 7. They are an energy holding firm headquartered in Indiana. Consolidated Net Income was up slightly in the first quarter 2009, but EPS is down .04 cents due to issuing of additional shares. The CEO had positive words about the company and expected performance into 2009. On the charts, shares have been uptrending since March 9th and price is above the 50-day SMA. However, resistance was met at the 200-day SMA at 23.50.

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.