A Pair of Top PowerRatings Upgrades for Investors: EW, TECD
Knowing what stocks to buy is only half the equation. Knowing when to buy those stocks can make the difference between a timely investment and one that may take an uncomfortably long time to outperform.
There is some leeway when it comes to our Long Term PowerRatings in terms of how soon active investors need to make a move once stock’s PowerRatings move into the “consider buying” zone of 8, 9 or 10. But it is clear that active investors benefit from knowing at any given time just which stocks have the high Long Term PowerRating “seal of approval”.
And whether or not investors choose to strike immediately, or simply to put high Long Term PowerRatings stocks on a watchlist for further study, knowing just when stocks have made the grade can ensure that investors are always open to the best investment opportunities as they happen.
Both of the stocks in today’s report have experienced PowerRatings upgrades in recent days. Not only that, but both stocks have had their PowerRatings upgraded from the same point to arrive at the same point: a respectable Long Term PowerRating of 8 that suggests that both stocks are likely to outperform the average stock in a year’s time.
First up is Edwards Life Sciences [EW@EW]. This 8-rated stock hails from the Medical Appliances and Equipment industry group, an industry with an average PowerRating of 6.
Edwards Life Sciences specializes in products designed for the treatment of cardiovascular disease. Headquartered in Irvine, California, the company is the number one maker of heart values in the world and had sales in 2007 in excess of $1 billion.
Credit Suisse recently reiterated its “outperform” rating for Edwards Life Sciences and set a target price of $70. The stock most recently closed at about $60 per share.
The other half of our pair of PowerRatings upgrades consists of Tech Data Corporation [TECD@TECD]. Tech Data Corp also has a Long Term PowerRating of 8, but differs from Edwards Life Sciences in that Tech Data comes from an industry, Wholesale Computers, that has an industry PowerRating of 10 — our highest rating.
Remember that industries that receive PowerRatings of 10 have outperformed the average industry, according to our historical testing, by a wide margin. Specifically, we discovered that 10-rated industry groups produced average annualized returns of more than 35% between 1995 and 2007. The average industry group, by comparison, managed average annualized returns of approximately 14.61% over the same time period in our historical testing.
Tech Data Corp is a Florida-based company and one of the leading providers of technology products from many of the world’s most relied-upon hardware and software producers. A member of the Forbes 500, Tech Data Corp recorded over $23 billion in sales as of the end of the fiscal year in January 2008.
Tech Data Corporation most recently announced that its board of director had authorized a $100 million share buyback program. The move is the latest in a series of stock buybacks the company has organized, having spent $300 million in stock buybacks over the past three years.
Looking for more long-term solutions to your investing problems? Don’t let the volatility of this market lead you to miss out on stocks you’ll be glad to have bought a year from now.
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David Penn is Senior Editor of PowerRatings.net.