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

5 Rocket Stocks to Buy for Earnings Season

Beam Inc.

Spirits maker Beam Inc. (BEAM) has been quietly telling a post IPO success story following its spin-off from Fortune Brands (FBHS) in 2011. The firm has rallied more than 36% since then, a time when the S&P made just over half that. Beam is best known for its namesake Jim Beam brand, as well as other bourbon labels like Maker's Mark and its stable of small batch bourbons. It also makes Sauza tequila, Courvoisier, DeKuyper and the Skinnygirl line of ready to drink products.

The move to a pure play spirits manufacturer was a smart one for Beam's shareholders -- it gave them exposure to Beams best qualities without adding on the needs of a set of completely disparate businesses. Even though Beam owns a handful of second-tier liquor names, it makes up for that with its strength in the bourbon market, where it's the number-two distiller by volume. Even though competition is fierce in the spirits business, so is brand loyalty. A sticky customer base should help keep well loved brands like Makers throwing off considerable cash.

That cash should continue to come in handy deleveraging Beam's balance sheet. The spin-off left the firm with considerable debt, but management has done an admirable job of paying that down so far. The firm's 1.3% dividend payout helps to round out the shareholder yield focus that shareholders are getting right now at Beam.

Southwest Airlines

Southwest Airlines (LUV) isn't a typical legacy airline -- and until recently, that's been the secret to Southwest's success. The firm boasts a fleet of around 700 aircraft, primarily Boeing's (BA) 737, serving flights to more than 110 cities worldwide.

Southwest's decision to do away with the conventional hub approach to flying was critical to the firm's ability to compete against the airline establishment. By focusing on profitable routes over network size, the firm was able to wring more dollars out of every seat on the plane. The AirTran acquisition dramatically increased Southwest's scale, giving it exposure to a slightly different demographic that includes two-class cabins for a change. The addition of Hawaii and potentially new international routes to Southwest's route map is worth thinking about for investors -- it adds considerable risks (the economics of each flight are more volatile for longer-haul flights), but it also comes with some big potential rewards.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

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