PowerRatings Best of the Requests: CVX, PG, EEP, MMM
The stocks that active investors and long term traders are researching right now include companies with different types of exposure to the booming oil market, a major conglomerate and a tried ‘n’ true personal products firm.
It is little surprise, with crude oil topping $135 per barrel in recent days, to find active investors looking for stocks that will let them get a piece of the action of a rising oil price. And one of the stocks that investors have been looking at is Chevron Corp [CVX@CVX], one of the Big Three or “Major Oils”.
Chevron officially belongs to the Major Integrated Oil and Gas industry, an industry group that has earned our top industry PowerRating of 10. This makes the Major Integrated Oil and Gas industry among the best places for investors to look for stocks.
Our research into industry group behavior going back to 1995 indicates that industries that had PowerRatings of 10 – our highest rating – achieved average annualized returns of more than 35%.
Compare this to the average industry group, which produced average annualized returns of 14.61%.
Chevron, which sits near the top of this industry group, has a Long Term PowerRating of 8. Stocks with 8 PowerRatings have been higher one year later more than 74% of the time in our testing. This is better than the average stock, which has been higher one year later less than 68% of the time.
Maybe it was the fact that our next Most Requested high PowerRating stock was also featured in our Wednesday Stock Spotlight. But investors and long term traders wanted to know more about Procter & Gamble [PG@PG]. Procter & Gamble has a Long Term PowerRating of 9, which makes it among the most attractive stocks for active investors right now. We found that stocks with Long Term PowerRatings of 9 were not only higher one year later more than 79% of the time. 9-rated stocks also tended to gain more than 18% after one year. Both of these figures compare favorably to the average stock.
Another 9-rated stock is also one that investors looking for oil exposure turned to over the past 24 hours. This stock is Enbridge Energy Partners LP [EEP@EEP]. This stock has been mentioned in the past also, in our PowerRatings article on alternative ways to get exposure to the oil market by investing in oil and gas pipeline companies such as EEP.
As a member of the Oil and Gas Pipelines industry, EEP has plenty of high PowerrRating company. Also at the top of this 10-rated industry group are stocks such as Nustar Energy [NS@NS] and Teppco Energy [TPP@TPP] – both with Long Term PowerRatings of 9, and six stocks with Long Term PowerRatings of 8.
Our last high PowerRating stock among those stocks that investor were looking to find more information about in the past 24 hours is 3M [MMM@MMM]. 3M does not show up on stock lists very often.
However widespread the company’s products are (and there’s a good chance that at least one of 3M’s products is within arm’s reach of everyone reading this article right now), the stock is not the kind of name that usually draws a great deal of attention.
But PowerRatings investors have been paying attention to this 8-rated stock, which sits at the top of an industry with an impressive Industry PowerRating of 9.
We’ve already discussed the reliability and performance aspects of 8-rated stocks in our look at Chevron. It is worth pointing out that with an Industry PowerRating of 9, the Conglomerate industry of which 3M is a part is another place where investors can begin looking for quality stocks.
Industries with PowerRatings of 9, according to our research, achieved average annualized returns of more than 24%. Although not quite as impressive as 10-rated industries such as Major Integrated Oil and Gas or Oil and Gas Pipelines, this kind of performance in our historical testing is the kind of performance that investors should demand from the industries in which they invest.
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David Penn is Senior Editor of PowerRatings.net.