Dow Stocks -- The Top Six Picks

BOSTON (TheStreet) -- There are no losers in the Dow Jones Industrial Average. Dow stocks, even those with the lowest ratings, are like students admitted to Harvard Business School -- you have to be among the best to get in.

>>Dow Stocks: Worst to Best

>>Dow Stocks: Crossing Over to 'Buy'

>>Dow Stocks: Ones You Can't Live Without

>>Dow Stocks: Getting Better

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 selection is the cream of the crop. This group features all-around quality companies that receive at least a B-plus from TheStreet.com Ratings' model.

#6. IBM(IBM)

P/E (price-to-earnings): 12.6 (Technology Average: 32)

P/S (price-to-sales): 17 (Technology Average: 4.8)

P/FCF (price-to-free cash flow): 9.5 (Technology Average: 23.9)

Big Blue comes in at No. 6 with a grade of B-plus and a "buy" rating based on solid numbers all around. The stock has climbed about 36% over the past year and is still undervalued compared with competitors. The technology company saw only a slight slowdown in its performance trends despite the deepest economic recession in 80 years.