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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Top Rocket Stocks for the Week of Oct. 1

As crack spreads near their lowest level in some time, pressure has been put on refiners such as Valero and Tesoro (TSO) and could affect operating margins. With tons of cash on the books and a price-to-earnings (P/E) ratio of 7, Valero likely is going to move, playing catch-up to oil next week. I believe it could easily trade to $72.

Weekly Catalyst: Look for a rebound in crack-spread margins to help boost Valero among other refiners; this could rocket shares, which have not been following crude oil prices.

Next on the list is FreightCar America (RAIL), which has been on a horrible slide ever since it posted subpar earnings back in late July. It is down some 33% from its early-July highs. That makes the stock now worth a look.

With a short position of 18% leaning on the stock, it is no wonder FreightCar America has had trouble moving. However, with investors such as Warren Buffett and other large hedge funds investing in the rail space, shorting such stocks will likely backfire. My guess is that Buffett is indirectly playing international growth via the rails; it is the safest way for him.

FreightCar America manufactures, rebuilds, repairs and sells freight cars that are used for hauling coal and other commodities, and it seems like a great way to indirectly play the current transition back into the rails. With a $17-per-share book value and $1.3 billion in revenue and zero debt, look for FreightCar America to move higher this coming week.

Weekly Catalyst: It's about to move much higher as it sports zero debt and a high book value. It's also a great play on the transition back into rails.

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