PowerRatings Best of the Requests: JNJ, ABT, CVX

Today is starting out with a slew of good news on the economic front. Foreclosures declined 6% in May, Retail Sales numbers are climbing and the Jobless figures were slightly improved over estimates. There is definitely a bullish sentiment in the air, but stocks are still very edgy on the climb higher.

It's very uncertain how long this stock positive energy will last. One thing is for certain, it's a much better environment than several months ago when gloom and doom ruled the marketplace. I would describe this market period as “positive uncertainty”. Meaning no one really knows for sure what the future holds, but there is an optimistic undertone growing rapidly in frequency. Regardless of what happens, long term investors need proven tools to help locate stocks most likely to outperform over the next year. The Long Term PowerRatings are one such proven tool. For those of you unfamiliar with our Long Term PowerRatings here is a brief overview. High rated stocks have proven to outperform their low rated brethren by a statistically relevant factor. In fact, 9 rated stocks have been proven, via significant testing, to possess a 79.1% chance of being higher one year later. Those with a 10 rating have proven to have an 81% chance of closing higher one year later. On the other hand, those with a low rating have shown to be simply too volatile, thus risky for the prudent long term investor. These low rated stocks can and do experience extreme price moves that potentially can work for or against you, however the fact remains that this type of volatility is simply too risky for conservative long term investment. Let's take a closer look at a sampling of the Long Term PowerRatings communities most requested stocks.

Johnson & Johnson (JNJ | Quote | Chart | News | PowerRating) - Interestingly, the number one requested stock on our screener is also the highest ranked stock in the DJIA and one of the highest in the S&P 500. This behemoth of a drug maker has earned an 8 Long Term PowerRating. 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. Technically, price has burst our above the 50 day SMA and is hitting resistance at $56.00/share. The 200-day SMA is resting at 57.30 and is the next hard technical resistance level.

Abbott Labs (ABT | Quote | Chart | News | PowerRating) - Another drug company is the second highest rated stock on the most popular screener earning a 7 Long Term PowerRating. They just reported a 10.1% increase in worldwide sales, an annual EPS growth of 14.0% and nine new regulatory approvals for 2008. The company reconfirmed a strong outlook for earnings in 2009.    However, the chart is not reflecting the good fundamental news. Share steeply dropped at the end of February, breaking through both the 50 and 200-day SMA's. It looks like a base is forming at the $46.00/share range and a bounce appears to have started.

Chevron (CVX | Quote | Chart | News | PowerRating) - Earning a 6 Long Term PowerRating, this oil and gas company hit our most popular screener today. Needless to say, it isn't surprising with the price of oil rapidly increasing as the economy slowly improves. The company is struggling in the first fiscal quarter of 2009, along with the other major oil firms. Earnings declined a whopping 64%.   This is due to sharply lower prices across the board, however, as you know this is quickly changing. Technically, a triple bottom appears at $64.00/share and price just broke above the 200-day SMA currently at $69.97/share.

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.