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

5 Rocket Stocks to Buy as Stocks Sell Off

Stocks in this article: V DE BAX JNJ MCD

BALTIMORE ( Stockpickr) --Well, the worst week for stocks since November 2008 is finally over, but that doesn't mean that the selling is.

Watching last week's 7.19% slide in the S&P 500 was a lot like watching a train wreck; even when the selloff seemed over, it still had more to go. The selling officially shoved the S&P 500 into negative territory for 2011, a major psychological blow for investors who've been holding out for higher ground. Let's not forget that just a few weeks ago, major indices were taking a stab at multi-year highs -- today, we're breaking records in selling and volatility.

Standard & Poor's downgrade of the U.S.'s AAA credit rating is bound to be the biggest driver of the equity markets as a new week kicks off. While the potential for a downgrade to AA+ had already been priced into stocks, some knee-jerk reaction from investors should be expected this week. We're already seeing it take shape early in today's trading.

Related: 2 Pair Trades for a Volatile Market

That doesn't necessarily mean that you should step away from stocks right now. We've got the recipe for outsized gains right now: it's all about the Rocket Stocks.

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 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.

It's a strategy that's been working out pretty well. In the last 115 weeks, Rocket Stocks have outperformed the S&P 500 by a very material 78.9%.

With that, here's a look at this week's Rocket Stocks.

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