PowerRatings Weekly Outlook: PAS, NDSN, RSG, MSFT, BAC, C

• By Dave Goodboy
• On 11:14 am EDT, Friday September 18, 2009

David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.

Stocks are set for a strong opening on this final trading day of the week. Analyst recommendations for several key names and quadruple witching should keep things active and bullish today.

Monday started off on a positive note with Citigroup advising that it will payback the TARP funds with stocks closing higher on the day. Increased US/China trade tensions did little to stem the enthusiastic buying. The next day had two hyper bullish announcements of Buffett stock buying and Bernanke saying the recession was over. This pushed shares even higher on the week. Wednesday's release of Bloomberg's Global Confidence Index signaling a record high counteracted bearish news of more trouble in the banking sector. Stocks climbed still higher midweek. Thursday the market took a breather dropping slightly on the back of lower than expected earnings from several important names.

Even in the most bullish times long term investors need proven tools to choose stocks most likely to outperform over the long term. Our Long Term PowerRatings are one such proven tool. The ratings are a ranking from 1 to 10 that are based on statistically valid 14 year study across most market conditions. The lower the rating, the less suitable the stock is for long term investment. Stocks that are rated 1-3 are simply too volatile, thus risky to make wise investments. The midrange ratings, 4, 5, 6, 7, have been shown to match the overall market performance. The top rated stocks 8, 9, 10 are proven to have increased odds of being higher one year later.

In fact, our extensive studies clearly show that stocks with a 9 rating have a 79.1% chance of being higher one year later, and a 10 rating has a 81% chance of the higher close. These are strong statistical odds that will provide you an edge in stock picking.

Here are a few of the highlights this week from our Long Term PowerRatings Screener:

PepsiAmericas (NYSE:PAS - News) - The world's second largest seller, manufacturer and distributor of PepsiCo beverages. They have revenues of over $4 billion and serve a 19 state area in the United States plus Central and Eastern Europe. The company was just upgraded from a 7 to an 8 Long Term PowerRating. They experienced a solid second quarter with adjusted EPS up 3%, US revenue up 5% and they increased full year 2000 outlook. Technically, price gapped up on August 1st and has hit resistance at $28.50/share where a double top may be forming.

Nordson Corp (NasdaqGS:NDSN - News) - One of the world's largest producers of machinery that applies adhesives during manufacturing processes. They were just upgraded from a 6 to a 7 Long Term PowerRating. The company has launched a firm wide cost cutting initiative that has enabled it to perform well despite the slowing economy. Technically, price has been uptrending since July 13th. The company is trading nicely above both the 50 and 200-day SMA at 47.15 and 36.04 respectively.

Republic Services (NYSE:RSG - News) - A waste management company that has just been upgraded from a 6 to a 7 Long Term Power Rating. They just raised their EPS 2 cents, raised the free cash flow numbers $25 million dollars and increased full year guidance for 2009 in the second quarter. A quarterly divided of 19 cents/share was announced to be paid on October 15th, 2009. On the chart an uptrend is in place with the 50-day Simple Moving Average acting as support.

Microsoft (NasdaqGS:MSFT - News) - This king of software companies is the highest ranked stock on our most requested screener today with a 7 Long Term PowerRating. They are best known for the monster success of the Windows operating system and their founder Bill Gates. This fiscal year, ending in June, the major fundamental metrics were down across the board. However, they did up the dividend 7 cents. Technically, shares have been uptrending since mid June. However, they have exhibited a series of erratic bursts, gaps and falls during this time. $25.50/share appears to be solid technical resistance with price approaching this figure once again. Shaky support appears at $23.00/share.

Bank of America (NYSE:BAC - News) - This money center bank has hit the most requested screener in the number 1 position. It has earned just a 3 Long Term PowerRating. The company has been in the news over the last several days as 5 of their executives have been subpoened to testify concerning the Merrill acquisition. All the main metrics were down this quarter. There is much unknown about the future course of this company given the present situation. On the chart, a steep uptrend is in place with resistance at $18.00/share.

Citigroup (NYSE:C - News) - Another beat down volatile financial institution that has earned a 3 Long Term PowerRating. Net income is substantially higher last quarter and has been exhibiting a nice upward trend. EPS has turned positive last quarter after being negative for quite some time. The stock is well off its lows but price has hit resistance in the $5.25/share range falling back to $4.25. Nearby support exists at the 50-day SMA currently resting at $3.88/share.

Stocks In The News

Here are several names catching my eye:

Bronco Drilling (NasdaqGS:BRNC - News): Soared 22.30% or 99 cents to $5.43/share after a research firm stated it was the least expensive in the driller sector.

Sealed Air (NYSE:SEE - News): Was upgraded to "buy" at Bank of America sending shares higher by 5.83% or $1.11 to $20.16.

Winnebago (NYSE:WGO - News): The RV maker may run out of cash next year per Barons sending shares tumbling 3.95% or 51 cents to $12.41.

Zoran (NasdaqGS:ZRAN - News): Needham & Co upgraded the company to "buy" sending shares higher by 5.33% or 57 cents to $11.27.

Yahoo (NasdaqGS:YHOO - News): Climbed 5.46% or 84 cents to $16.41/share after being upgraded at Sanford Bernstein to "outperform".

Royal Caribbean Cruises (NYSE:RCL - News): Floated 8.97% or $1.95 to $23.70/share higher to upon being marked a "buy" at Bank of America.

Martha Stewart Omnimedia (NYSE:MSO - News): Soared 19.42% or $1.33 to $8.18/share after agreeing to a deal with Home Depot to develop an exclusive product line.

Citigroup : Fell 8.85% or 40 cents to $4.12/share after word that the Treasury may start dumping acquired shares in October hit the street.

This Week's Top Performers

Euro Disney (Nasdaq:EUDSF - News)

Belo Corp (NYSE:BLC - News)

Zoom Tech (NasdaqCM:ZOOM - News)

This Week's Worse Performers

DynTek (Nasdaq:DYNE - News)

Pinnacle Bankshares (Nasdaq:PPBN - News)

KK daVinci (Nasdaq:KKDAF - News)

What To Expect Next Week

Monday: Leading Indicators

Tuesday: Durable Orders

Wednesday: Crude Inventories

Thursday: Initial Claims

Friday: New Home Sales, Mich. Sentiment

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. Go to TradingMarkets.com to get your copy of the "5 Secrets to Successful Stock Investing" today!

Buzz up!