PowerRatings Across The Indexes: JNJ, MCD, TEVA, AAPL, WYE, BCR

The sell off in stocks continued today as investors take profits and digest the reality of the stress test results. Soaring oil prices and falling home prices are keeping the fear alive in the market despite the recent optimistic performance.

It's important to note that markets never go straight up, even in the best of times, therefore picking the right stocks is critical for your long term portfolio. Long term investors need proven tools to keep them in the right stocks to benefit from the potential brewing bull market.

Our Long Term PowerRatings are one such dynamic tool. This tool fills the niche by being built upon 13 years of extensive, statistically valid studies across most market conditions. Our studies indicate that stocks earning a 10 Long Term PowerRating have an 81% chance of being higher one year later.

Those with a 9 rating possess a 79.1% chance of trading higher one year later. Conversely, stocks that are awarded low ratings of 1 or 2 have clearly shown to be simply too volatile and risky for prudent, conservative long term investors. You can clearly see the statistical advantage in building a long term portfolio consisting of 9 and 10 rated stocks, while avoiding the lower ratings. Interestingly, the Long Term PowerRatings are starting to increase across the board signaling the worse may be over.

Here are several Long Term PowerRated stocks from each of the 3 major indexes that may be worth a deeper look:

The DJIA

Johnson & Johnson (JNJ | Quote | Chart | News | PowerRating) - This is the number one ranked company in the DJIA earning an 8 Long Term PowerRatings. In April, the major drug maker announced a 6.5% dividend increase. 1st quarter results indicate declines across the major fundamental metrics. Sales were down 7.2%, negative currency impact of 12.6% and Net Earnings took a 2.5% hit. However, EPS matched last year at $1.26 and the company reconfirmed its earning guidance of $4.45 to $4.55/share for 2009. The CEO, William Weldon, sounded very optimistic about 2009 despite the slightly negative results. On May 19th, the company is hosting a conference with analysts regarding its new NEVO stent product. It's likely good news, but only time will tell for sure. Technically, price has burst our above the 50-day SMA and is hitting resistance at $55.00/share. The 200-day SMA is resting at 59.03 and is the next hard technical resistance level.

Mc Donald's (MCD | Quote | Chart | News | PowerRating) - This international fast food hamburger chain has earned a 7 Long Term PowerRatings. It is the second highest ranked company in the DJIA. World wide sales increased 7.1% in January with a stronger increase in Asia. The entire 2008 year was positive for the company with an astounding 58 million customers served per day. A share repurchase deal and plans to open over 1000 new restaurants bodes well for success into 2009. April showed a 6.9% increase in Global Comparative Sales, a good start for this quarter. Technically, shares have been channeling between the 50 and 200-day SMA's located tightly together at 54.17 and 57.21 respectively.

The Nasdaq

Teva Pharma (TEVA | Quote | Chart | News | PowerRating) - This stock remains the number one ranked stock in the Nasdaq index with a 7 Long Term PowerRatings. The firm is headquartered in Israel and is the world's largest maker of generic drug products. First quarter 2009 results have been very strong with a 22% increase in Net Sales and a 4% improvement in GAAP income. This is despite negative U.S. Dollar strength adversely effecting sales. Technically, price is above both the 50 and 200-day SMA's but is finding resistance at $45.50/share.

Apple (AAPL | Quote | Chart | News | PowerRating) - This pioneer computer company led by visionary entrepreneur, Steve Jobs, is the 6th highest ranked stock in the Nasdaq today. It has been awarded a 5 Long Term PowerRatings. They have recently had great success with the category busting iPhone with a new version due to be released shortly. However, rumors of Steve Jobs being in near death health conditions have capped the enthusiasm somewhat. Shares have been on a tearing upward since March 9th, bursting through the 50-day SMA and recently through the 200-day SMA at 112.65. It appears that resistance was hit at $130.00/share and the major SMA's are about to cross over

S&P 500

Wyeth (WYE | Quote | Chart | News | PowerRating) - A top ranked drug stock with an 8 Long Term PowerRatings. If you remove the negative impact of foreign exchange, Revenue grew by 2% during the first quarter of 2009. Several products experienced huge Revenue gains and EPS gained by 1%. Price has been climbing higher currently at $44.50/share.

CR Bard (BCR | Quote | Chart | News | PowerRating) - A 7 Long Term PowerRated stock. They are a medical supply/product company who recently obtained FDA approval for their “LifeStent” vascular product.  Revenue was up 9% in the fourth quarter and Net Income was up 11%. CEO Timothy Ring had very positive words about the quarter and gave optimistic guidance into the future.  On the chart, price has bounced off the $70.00/share support level and is presently finding resistance at the 50-day SMA at $75.42.

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.