BALTIMORE ( Stockpickr) -- Spain's continued drama is gut-punching Mr. Market this morning - and taking some of the attention off corporate that have handily bested Wall Street's expectations so far this earnings season.
Of the 121 S&P 500 stocks that have announced earnings this week, for instance, approximately 90% have overshot Wall Street's estimates on profits. That tells us that investors have been way off base this earnings season -- and that stocks could have more upside ahead of them if market prices are to stay line with the values investors can find right now. Based on price and earnings, the S&P is already discounted more than 20% versus where it was just a year ago.
It's not hugely surprising that Europe is shoving stocks underwater this morning: Equities have been conducting an orderly rally for the last few months, and increasingly anxious investors are still looking for any crumbling foundations to the climb in price. That said, a lack of truly new information in Europe combined with an earnings season data dump this week should refocus investors' attention in the next few days.After all, big names such as Apple (AAPL) and Merck (MRK) are slated to announce their earnings numbers this week, and more than 170 total S&P names are reporting in the next five days. That's why we're turning to a new set of Rocket Stocks this week. >>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now! 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 weekly 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. After all, where analysts' expectations are increasing, institutional cash often follows. In the last 160 weeks, our weekly list of five plays has outperformed the S&P 500 by 79.05%. With that, here's a look at this week's Rocket Stocks.