5 Rocket Stocks to Buy for Earnings Season
And the early indications suggest that they will.
Other economic fundamentals have been throwing off some auspicious hints of their own over the last couple of weeks. Unemployment's holding steady at the lowest rates since the Great Recession, housing numbers are picking up, and it looks likely that guidance -- rather than earnings releases themselves -- will take the spotlight starting this week.
If the first week of 2013 is any indication of what we should expect for the year ahead, we're in store for some big gains. Last week, the S&P 500 put 4.57% in between its opening value and Friday's close. I've been talking about the possibility of a rally for a while now, but earnings season should give that outlook its first real test.
Still, as well as the S&P did last week, our list of Rocket Stocks managed to do one better, ending just shy of 4.9% for the week. That's reason enough to take a closer look at a new set of Rocket Stock names for 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 183 weeks, our weekly list of five plays has outperformed the S&P 500 by 73.2%.
Without further ado, here's a look at this week's Rocket Stocks.