5 Rocket Stocks for a Short Trading Week
Cummins
Last up on this week's Rocket Stocks list is Cummins (CMI), the manufacturer of diesel, hybrid and natural gas engines, primarily for heavy trucks. Like our other Rocket names, CMI has enjoyed some stellar relative strength vs. the broad market year-to-date. That trend looks likely to continue from here.
Cummins is an integrated engine builder. That means that the firm is responsible for everything from the turbochargers to the power units and filtration systems used on its engines. Building more parts may take extra specialization to pull off, but it means that Cummins is able to earn bigger net margins by not shelling out profits to a supplier too.
Going green is a big trend in the commercial truck market, and Cummins owns a significant chunk of that. It's already the biggest builder of natural gas-powered engines in the world, offering operators efficiency that's all the more attractive while gas prices remain high. Not all of Cummins' business is commercial; the firm also makes the turbo diesels found in Dodge Ram trucks. While the Cummins engine is a pricier option, it's one that around 80% of eligible Ram buyers opt for. That may sound trivial at first, but pickup truck engines now make up around 10% of CMI's total sales -- that's no joke. Financially, the firm is in great shape, with a net cash position (a rarity for such a capital-intense industrial firm). A 1.7% dividend yield rounds out the story for this firm right now. To see all of this week's Rocket Stocks in action, check out the Rocket Stocks portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.Follow Stockpickr on Twitter and become a fan on Facebook.
Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim 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
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
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
Stocks Under $10
TRY IT FREEDavid 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
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll 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 + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur 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
