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TheStreet Open House

5 Rocket Stocks You Should Buy as Stocks Bounce

Stocks in this article: AXPAZOJNJKVMW

BALTIMORE ( Stockpickr) -- A bout of spring snow moving in on Wall Street is putting traders back in the holiday spirit this March morning, as Mr. Market stages a big bounce from last week's consolidation phase. While the real reason for this morning's buoyancy in stocks probably has more to do with Cyprus and the broad market's technicals than it does with the weather, the important thing is that the S&P 500 is continuing its orderly rally this week.

>>5 Stocks Ready to Break Out

With the S&P within grabbing distance of all-time highs before the open this morning, investors have good reason to ascribe some importance to today's price action. New highs are significant from a psychological perspective, and these highs are especially compelling because they haven't been led by big names such as Apple (AAPL), Exxon Mobil (XOM) and Wal-Mart (WMT). Instead, the rally has soldiered on in spite of them.

As the biggest market cap components of the S&P 500 start playing catch up, we could see some significant fuel thrown on top of this stock ascent. That's reason enough to take a closer look at five new Rocket Stock names this week.

>>5 Huge Stocks to Trade for Gains

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 192 weeks, our weekly list of five plays has outperformed the S&P 500 by 72.4%.

Without further ado, here's a look at this week's Rocket Stocks.

>>5 Must-Own Dividend Stocks for 2013

Johnson & Johnson

Up first is health care giant Johnson & Johnson (JNJ). This $217 billion health stock is one of the mega-cap names that's been leading the push to new highs in 2013, with shares up close to 14% since the first trading session of the new year. Johnson & Johnson's positioning as the prototypical blue-chip stock gives it some extra shimmer in this market environment; the firm's 3% dividend yield is an attractive bonus while interest rates remain near historic lows.

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