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Top Rocket Stocks for Week of March 24

 

Updated from 7:13 a.m. EDT

With so much liquidity hitting this market coupled with the fact that stocks in general are cheap, an inevitable snapback rally happened.

Since the start of the Rocket Stocks column, I've each week compiled a list of stocks that I believe have the catalysts to send them soaring in the coming days.

But before we get to this week's Rocket Stocks portfolio, let's take a look at how last week's picks fared.

  • Goldman Sachs (GS): Up 26.5% on the week after beating analysts' earnings estimates Tuesday.
  • Level 3 Communications (LVLT): Up 8.1% on the week as a pure snapback play.
  • Tesoro (TSO): Up 3.7% on the week.
  • UltraShort Oil & Gas ProShares (DUG): Up 3.4% as oil fell 6% on the week.
  • Gilead (GLD): Up 2.1% on the week.
  • Enzon Pharmaceuticals (ENZN): Up 2% on the week.
  • Aluminum Corp. of China (ACH): Up 0.5% on the week after reporting lower-than-expected earnings Tuesday.
  • Hollywood Media (HOLL): Down 0.8% on the week.
  • Market Vectors Global Agribusiness ETF (MOO): Down 3.4% as agricultural stocks lagged the overall market this week.
  • Southern Union (SUG): Down 4.3% on the week as natural gas prices fell.

Now let's look at some of the picks from this week's Rocket Stocks.

First up this week is Robbins & Myers (RBN), a diversified machinery and oil pumping company that is set to report fiscal second-quarter earnings on Thursday.

Robbins & Myers is divided into two main business platforms:

  1. Fluid Management supplies Robbins & Myers with a substantial part of its total revenue. Fluid management, especially its pressure pumping systems, is essential in keeping oil rigs squeaky clean, allowing them to pump as much oil as they physically can. With oil at record prices, it's only natural to assume this part of the business is booming.
  2. Process Solutions deals with the chemical and pharmaceutical sectors. Its Romaco division, which has been very volatile in the past, saw large orders at the beginning of the first quarter. Most analysts have yet to add Romaco's earnings potential into their overall estimates. Once they see a second quarter of steady growth and orders in Romaco, analysts are likely to boost their estimates.

While weaker industrial goods orders may slow down some of its domestic sales, 60% of the Robbins & Myers' total revenue comes from outside the U.S, making this slowdown hardly an issue. Also, the dollar is 12% weaker since the company last reported earnings.

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