5 Rocket Stocks for a Short Trading Week
BALTIMORE ( Stockpickr) -- Investors can thank George Washington and Abe Lincoln for the extra breathing room stocks got yesterday. Short trading weeks can be a godsend, especially when Mr. Market is coming off a major rally move.
The extra reprieve from trading this week should give investors a little bit longer to let emotions die down before deciding on their next moves in the market. With the S&P 500 consolidating sideways just a couple percentage points off of all-time highs, that's a very constructive place for stocks to be.
To take full advantage, we're zooming in on five new Rocket Stock names this week.
For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 188 weeks, our weekly list of five plays has outperformed the S&P 500 by 77.72%.
Without further ado, here's a look at this week's Rocket Stocks .
>>Hedge Funds Hate These 5 Stocks -- but Should You? United Technologies
2013 is panning out to be a good year for United Technologies (UTX) . Shares of the $82 billion firm have climbed more than 10% since the first trading day in January, outpacing even the broad market's brisk climb. UTX is an industrial conglomerate that owns a big portfolio of construction, aviation and security products. The company's brands include everything from Carrier air conditioners to Sikorsky helicopters.
If there's a single word to describe UTX's total business, it's "cyclical."
Each of the key product lines that United Technologies makes is subject to some serious ebbing and flowing with the economic cycle, and as a result, when it rains economically, it pours for this company. To fix that, UTX has been working to diversify its product lineup to include more recession-resistant offerings.
In the meantime, service and parts have been a saving grace for UTX's bottom line. Because the elevators and jet engines that UTX makes are big ticket items, keeping them serviced well is a good investment for the firm's customers -- and it means that UTX can lay claim to consistent, sticky revenues for its troubles.
While acquiring aviation firm Goodrich added considerable debt, the firm's balance sheet is in reasonable shape. Ample cash flows help to finance a 2.36% dividend yield in shares -- and rising analyst sentiment bodes well for this stock right now. eBay