This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Rocket Stocks: Yum!, Costco, Travelers

Stocks in this article: TRVCOSTYUM

BALTIMORE ( Stockpickr) -- Major stock indices gained nearly 3% last week, and investors are left wondering if the market can hand over further gains as a new week begins. Sources point to yes, because last week's move higher was largely technicals-based. That means that it was a gain that was driven by the market's price action, not one that was predicated on a shift in economic fundamentals.

This week, however, with a slew of new economic data set to come out -- and mushy market support at 1220 -- stocks have a chance at leveraging their latest move higher for another year-end rally. That timing isn't insignificant either. With the end of the year fast approaching and 2010 highs within investors' sights, the bulls will be aching to end on a high note.

>>Also: 3 Downtrending Stocks to Avoid

But regardless of what happens with stocks this week, we've got a game plan.

Once again, we'll turn to our weekly Rocket Stocks list to outperform the market this week. For the uninitiated, Rocket Stocks are our weekly list of companies with short-term gain catalysts and longer-term growth potential. In the last 81 weeks, Rocket Stocks have outperformed the S&P 500 by 78.31%.

Here's a look at this week's potential plays.

It's about time that we turned to Yum! Brands (YUM) for some upside potential. Yum! was a frequent component of our weekly Rocket Stocks list in 2009, and this year we're counting on repeat successes ahead of the firm's investor and analyst conference on Wednesday.

>>Also: 10 Restaurant Winners of 2010

Yum! is a fast food giant, home to such brands as Taco Bell, KFC, and Pizza Hut. Its quick-service chains also enjoy some of the best emerging market penetration in the industry, making the firm an attractive choice for growth-hungry investors right now.

Part of that success comes from prescient positioning several years ago. Yum! was among the first American restaurant firms to embrace China; today, those Chinese restaurants see industry-leading average annual unit sales of $1.2 million and constantly improving margins. Initially, Yum's strategy had been relegated to deploying its existing brand portfolio abroad. Today, however, the firm also owns several localized brands that help Yum drill down its offerings to fit demands in the markets it serves.

>>Who Owns Yum!?: Lone Pine Capital

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs