| Daily Analysis |
Stock Spotlight: Lincare Holdings
Wednesday, May, 14 2008 Lincare Holdings is far from the fanciest stock in the market. But with its high Long Term PowerRatings and high Industry PowerRating, Lincare Holdings is more than qualified to be our featured in our PowerRatings Stock Spotlight of the week. More >>
More Analysis >>
|
|
|
How To Use Industry PowerRatings
Many money managers and professional investors
like to apply a top-down approach to investing. This means, they first look at
the economy, then decide which industries and stocks will benefit most from
their outlook.
Industry PowerRatings uses a proprietary
methodology to identify the industries which are showing substantial money
flowing into them. From 1995-2006, the industries which have had a PowerRating
of 10 have achieved annualized returns of over 35%. Meanwhile, industries which
have had a PowerRating of 1 have on average lost money on an annualized basis.
Here are the simulated returns from 1995-2006. As
you can see, the higher the PowerRating, the better the performance has been.
(click here to enlarge)
Ideally, investors should be invested in
industries with high PowerRatings. Investors should avoid, or be short,
industries with low PowerRatings. This can be done with the use of ETFs, or
other derivatives, that focus on specific stocks/sectors within these
industries.
You can also go a step further with Industry
PowerRatings. You can potentially identify industries with high PowerRatings,
and then stocks within those industries which also have high PowerRatings.
PowerRatings for stocks can be obtained from the Long Term PowerRatings section of this site.
If you would like to learn more about how to invest with Industry PowerRatings, click here to watch a video presented by Steve Primo, PowerRatings Director of Education.
|
|
|
