Dow Stocks Getting Better All the Time

BOSTON (TheStreet) -- Dow stocks with the highest ratings move from strength to strength.

Such companies have growth potential yet are financially stable. As investments, Dow stocks such as Pfizer(PFE), Coca-Cola(KO) and Hewlett-Packard(HPQ) are hard to beat in the long run.

>>Dow Stocks: Part 1

>>Dow Stocks: Part 2

>>Dow Stocks: Part 3

Dow stocks are the oft-cited gauge for equity performance in the U.S. and targets for many large-cap fund managers. The simplest way, in theory, for a manager to best the market would be to buy the market but kick out the least attractive Dow stocks.

Picking the top-performing Dow stocks is no easy task. This week we're ranking Dow stocks based on TheStreet.com Ratings' proprietary quantitative model. The model takes into account financial strength, volatility, growth potential, performance and dividends to project those most likely to perform well over the coming year.

Today's batch of stocks is exclusively "buy"-rated. The group features strong growth potential and great financial strength -- with one glaring exception.

#12. United Technologies(UTX)

Price/Equity: 14.7 (Industrials Average: 29.6)

Debt/Capital: 31.3% (Industrials Average: 38.8%)

Price/Free Cash Flow: 13.8 (Industrials Average: 25.17)

United Technologies may not be a household name, but there's a good chance you came across its products. Otis, a maker of elevators and escalators, and Carrier, a heating and cooling company, are owned by United Technologies. The company also deals in aeronautics and has its hand in defense contracting through subsidiaries Pratt & Whitney and Hamilton Sundstrand.