Well, I didn’t get much data that was worthwhile from Trading Market’s PowerRatings system. Since the free tool that they have available allows you to plug in one by one the stocks you’re interested in, I ran 3 separate screens from another site to create a bag of stocks to use. I just picked a random stock screening site and used their built-in screen to search for the best Value stocks, best Growth stocks, and stocks with Recent Brokerage Upgrades.

Overall, I ended up with about 135 stocks to run through the PowerRatings system to see what kind of scores these stocks had, looking for 8’s, 9’s and 10’s to test for good long positions and looking for 1’s for a good short position. Of these, I got the following results:

PowerRating of 1 –> none

PowerRating of 2 –> 4 stocks

PowerRating of 3 –> 41 stocks

PowerRating of 4 –> 54 stocks

PowerRating of 5 –> 31 stocks

PowerRating of 6 –> 5 stocks

PowerRating above 7 –> none

These numbers are especially poor when you take into account that these stocks came from some stock screens that were supposedly filtering for stocks well positioned to grow as being the best-of-breed value (high PEG ratio) or growth (high 1, 2, and 3-5 EPS growth) stocks or have just been given a brokerage upgrade (within past week).

I will gladly share my spreadsheet with you upon request. I’ll try to find time this week to run through the screens again and see how the results go. I’ll also look at other screening tools and see what kind of results I can get.

The PowerRating system is less useful if it doesn’t give strong indicators, and that’s just what I’m seeing here–nothing really leaning strong towards buy or sell. But then again, thinking about the big picture that we’re seeing in the market, maybe PowerRating is doing what it’s supposed to: it’s showing that the market doesn’t have any really clear signs right now. If I were depending solely on PowerRatings, I’d be sitting out of the market earning money market interest levels on my funds just waiting for a buying opportunity to arise.