Monday PowerRatings Upgrades: BIIB, LMT, BIDU

It looks like volatility has returned to the stock market with the VIX index spiking over 13% this morning. Negative news from the global economic front is weighing heavily on shares as selling is intensifying across the board. The World Bank has cut its forecast for international growth to negative 2.9% in 2009.

We are back in the classic tug of war between market forces and governmental intervention. An epic battle between government supported bulls and the fierce bears of the free market is raging with stocks being the pawns. It's a toss up as far as which way the stocks will go for the rest of the year. Equally compelling arguments exist on both sides of the equation.

Regardless of overall market direction, there are always individual stocks that outperform. Long term investors need proven tools to locate these shares that stand the best odds for top performance over the next year. We have conducted studies and testing over the last 13 years to determine exactly what it is that distinguishes these winners from the herd of mediocre and downright loser stocks.

The results of this extensive research into the inner nature of equities have been boiled down to our Long Term 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 a 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 close look at several of the upgraded stocks this week:

Biogen Idec (BIIB | Quote | Chart | News | PowerRating) - A leader in therapeutic drugs focusing on lymphoma, multiple sclerosis, and rheumatoid arthritis. They were just upgraded from a 5 to a 6 Long Term PowerRating. The first quarter was good to the company with a 10% increase in Revenue, and GAAP earnings up 56%. These gains were driven by increased sales in 3 products produced by the company. On the chart, shares have been uptrending since the first of May. However, resistance was hit at $55.00/share knocking price back down to the 50-day SMA then forming a potential double top formation. Price has since been knocked back down to the 50-day SMA where it is piercing this support level today.

Lockheed Martin (LMT | Quote | Chart | News | PowerRating) - This venerable aerospace defense products company was just upgraded from a 5 to a 6 Long Term PowerRating. 2008 was a solid year with gains across all the major financial metrics. They were just awarded two developmental contracts from NASA and a contract from the US Air Force for an infrared night system. Shares have been uptrending since March 9th and price is above both the 50 and 200-day SMA's. However, resistance appears at $87.50/share

Baidu (BIDU | Quote | Chart | News | PowerRating) - The so called "Chinese Google" has just been upgraded from a 4 to a 5 Long Term PowerRating. Goldman Sach's kept their buy rating on the company that gets 74% of all Chinese search volume. First quarter 2009 was strong with a 41.1% increase in Revenue and a 23.5% increase in Net Income. Shares have been on a raging uptrend since March 9th. Price is above both the 50 and 200-day SMA, however, resistance was hit in the $320.00/share range with price falling hard today.

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.