"Oracle (NASDAQ: ORCL) has fattened itself up by swallowing more than 50 companies in the past five years," says Richard Moroney.

In Dow Theory Forecasts, he suggests, "Oracle has proved itself capable of delivering predictable earnings even during tough times by squeezing higher returns out of its assets, including those inherited via $35 billion worth of acquisitions over the past half-decade."

"While some fear the software giant is choking on its latest meal (Sun Microsystems), the deal makes sense operationally.

"At 12 times trailing earnings, Hewlett-Packard (NYSE: HPQ) trades at a 21% discount to its three-year average valuation and looks cheaper than other U.S. computer giants," says blue chip advisor Richard Moroney.

In Dow Theory Forecast -- a newsletter that has been published for over 5 decades -- he looks at the firm's diversified position and the reasons behind his "long-term buy" rating on the shares.

"For a company that chose its name via a coin toss, Hewlett-Packard takes a deliberate approach to dealing with trouble; its founders designed their first factory so it could be turned into a grocery store if the technology business failed to grow.

"Investors considering high-yield stocks should consider financial strength; in our quantitative model, Quadrix, we assess profit margins, interest coverage, and debt levels," says Richard Moroney.

In Dow Theory Forecasts, a newsletter that has been published for over 5 decades -- he looks at two stocks that score high in this area: drug manufacturer, AstraZeneca (NYSE: AZN) and defense industry player, General Dynamics (NYSE: GD). Here, the advisor reviews the two companies.

"AstraZeneca's operating cash flow jumped 24% in the first half of 2009, allowing the company to retire $3 billion in debt since the end of 2008.

"With high-quality stocks on sale, now seems an opportune time to look for bargains among small and midcap blue chips," suggests Richard Moroney.

In his Upside Stocks advisory, which uses the quantitative-based Quadrix ratings system, he says, "We've found several 'Best Buys' with superior year-ahead potential."

Here, the analyst looks at Aeropostale (NYSE: ARO), Catalyst Health (NASDAQ: CHSI) and Hornbeck Offshore (NYSE: HOS).

"Johnson & Johnson (NYSE: JNJ) has vast holdings, but its strategy is simple: Support a deep pipeline of new drugs and medical devices with an aggressive acquisition strategy and cost controls," notes blue chip investor Richard Moroney.

In his Dow Theory Forecasts, he adds, "And despite the recession, J&J has kept its financial footing, remaining one of the few companies with the top credit rating of AAA." Here's his long term outlook.

"This year the U.S. pharmaceutical market is expected to contract for the first time in 50 years as fewer people visit doctors or start new therapies for chronic conditions.

"Beyond 2009, an economic recovery should reinvigorate J&J, though it is too early to determine whether health-care reform will help or harm the company.

"Midyear is as good a time as any to pause and reflect," says Richard Moroney in Dow Theory Forecasts -- a newsletter with the distinction of having been published for more than 50 years.

Here, he reviews the state of the market and offers a look at trio of favorite stocks which he considers "fundamentally superior" companies: Biogen Idec (NASDAQ: BIIB), Comcast (NASDAQ: CMCSA), and Oceaneering International (NYSE: OII).

Stocks are up this year but not everyone is profiting. One reason is that many investors, stung by the market collapse, have been looking for safety by investing in dividend paying stocks. But Richard Moroney, editor of Dow Theory Forecasts, says that investing for yield is a flawed strategy.

Moroney, a chartered financial analyst, points out that while the S&P 1500 Index is up about 16% so far this year, investors in high-yielding stocks (with yields of 4% or more) have a year-to-date return of just 4%. And he says that stocks that do not pay dividends are up an average of 29%.

We spoke with Richard Moroney to find out why this is the case -- and what income investors should do.

"We screened our database for standouts based on meaningful profit surprises," says quantitative analyst Richard Moroney.

In Upside, a service focused on applying in-depth quantitative analysis to small to mid-cap growth companies, he looks at a trio of stocks earning his "Best Buy" rating -- Priceline (NASDAQ: PCLN), Sybase (NYSE: SY), and Synaptics (NASDAQ: SYNA).

"All things equal, the better a stock's earnings momentum and profit outlook, the more likely it is to outperform in the year ahead.

"In recent months, DirecTV (NASDAQ: DTV) has shown that pay television is recession-resistant; indeed, the company has been dishing up subscriber growth," says Richard Moroney.

In his Dow Theory Forecasts, the advisor explains why the satellite-TV system operator is among those select stocks consider to be "Focus List" buys -- the top long-term buy rating in their model portfolio.

"In the nearly 15 years since DirecTV sold its first satellite-television system, the company has grown to serve more than 18 million U.S. subscribers, or 16% of the country's households. DirecTV also operates in Latin America, where it generates 12% of revenue.

This post is part of a 12-article feature on the best bets for investing in China. To see all the other recommendations in this special report, click here.

"The rollout of China's 3-G cell-phone network offers huge potential for Qualcomm (NASDAQ: QCOM)," suggests Richard Moroney in the blue chip advisory, Dow Theory Forecasts.

"Third-generation networks offer higher download speeds for phones that browse the Internet and download songs and movies.

"We are still finding attractively valued growers in tech," says quantitative analyst Richard Morney.

In his Upside stock advisory newsletter, he notes "We have found several especially promising tech stocks with solid track records, strong finances, and attractive growth prospects."

Here, the advisor reviews three stocks that earn his top 'best buy' rating: Akamai NASDAQ: AKAM), Synaptics (NASDAQ: SYNA) and TeleCommunications Systems (NASDAQ: TSYS).

"We see smooth seas ahead for deepsea driller Oceaneering International (NYSE: OII)," says Richard Moroney.

The editor of the blue chip advisory, Dow Theory Forecasts, explains, "Most of the world's untapped oil reserves lie under the ocean floor, and oil producers are spending an increasing portion of their capital budgets on deepwater drilling."

"While oil prices don't directly affect Oceaneering International's profits and cash flows, they do move the stock. Oil prices fell by two-thirds in the second half of 2008, pushing Oceaneering shares under $20 for the first time since July 2005.

"Long-time healthcare investors can be forgiven their confusion; drug stocks are supposed to be defensive, but many of the largest drugmakers have been pounded," observes Richard Moroney.

Nevertheless, in the blue chip Dow Theory Forecasts, the advisor sees two favorite healthcare and pharmaceutical issues as long-term opportunities: AstraZeneca (NYSE: AZN) and Johnson & Johnson (NYSE: JNJ).

Moroney explains, "Healthcare companies' profits are supposed to remain fairly steady regardless of the economic situation. But hospitals' capital spending fell in the December quarter, and many consumers are putting off medical care because they cannot afford it.

"What's going on with Transocean (NYSE RIG), the owner of the world's biggest fleet of offshore drilling rigs?" asks Richard Moroney, a specialist in blue chip stocks.

In his Dow Theory Forecasts, he explains, "The shares plunged 67% - nearly $100 a share - in 2008, and we can't blame the usual suspects." Here, he explains why he continues to rate thes stock a "Focus List Buy" in his blue chip-focused advisory service.

"Poor operating performance? Wall Street expects 2008 per-share profits of $14.34, up 68%. Shaky future? Transocean is expected to grow per-share earnings 4% in 2009 and 10% annually over the next five years.

"Fundamentals eroding? Not at all. The balance sheet is sturdy and the backlog stout at $41 billion, or three times expected 2009 revenue. Rather, we see two chief contributors to Transocean's steep slide, and neither should jeopardize long-term prospects.

"One of my favor defensive sectors is healthcare," says Elliott Gue; the contributing editor to Personal Finance looks to Quality Systems (NSDQ: QSII), a company that helps automate medical records.

Quantitative analyst Richard Moroney also sees opportunity in the same niche sector. In his Upside newsletter, he looks to a competing play, Cerner (NASDAQ: CERN). Here are their reviews.

"The President made health care a centerpiece of his campaign, including investments in health care-related information technology (IT).

"Health care IT systems can save doctors' offices and hospitals significant administrative costs as well as prevent mistakes. In addition, some major health insurance firms are already putting heavy pressure on their physician networks to adopt these systems."

"Medical offices and hospitals are seeking to automate many functions, from storing patient records online to automatically submitting insurance claims for reimbursement.

"It's estimated that as much as 90% of health care records at smaller medical practices are still maintained in paper form, while even bigger hospitals keep close to half of their records manually.

"Quality Systems, a holding in our growth portfolio, is a leading provider of such systems. It sells software used to manage electronic patient records, billing, scheduling and other common administrative functions for medical and dental practices.