Top Rocket Stocks for Week of May 5

Update from 7:01 a.m. EDT

Each week, in my research for potential rocket stocks, I look for the possible near-term catalysts that could drive specific stocks higher. I'm searching for stocks that are likely to have the most volatility in the coming days, with the idea that the odds are greater that the volatility will move in a positive direction.

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

• Flowserve FLS: Up more than 12% at one point during the week, and ending the week with a 9% gain. The company posted positive earnings results and raised its 2008 profit guidance.
• bebe stores BEBE: Up about 5% for the week, despite posting a drop in sales.
• UltraShort Oil & Gas ProShares DUG: Up 4.5% on the week as oil and natural gas pulled back.
• Oil States International OIS: Ended up 3.2% after posting earnings that beat Wall Street estimates.
• Walter Industries WLT: Up 2.9% on the week following earnings.
• Manitowoc MTW: Ran up 4% ahead of earnings on Monday, but finished the week up just 1%. Manitowoc reiterated its 2008 profit outlook of $3.20 to $3.40 per share; analysts, however, were looking for an average of $3.41.
• GulfMark Offshore GLF: Down 2.8% on the week, despite reporting an earnings-per-share beat.
• Yamana Gold AUY: Finished the week down 5.2% as the dollar strengthened and gold stocks sold off.
• FreightCar America RAIL: Down 6.6% on the week after reporting a sharp earnings miss.

Now let's take a look at the Rocket Stocks for the Week of May 5-9.

First up is Blackboard BBBB, which provides software and database applications to various colleges and universities throughout the U.S. and aboard.

The company is slated to report first-quarter earnings on Wednesday, and with college seasons still in full swing, overall server and software demand has the potential to come in ahead of current analyst expectations. Blackboard shares have pulled back nicely from an all-time high of nearly $50. The stock closed Friday at $35.36.