This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

5 Rocket Stocks You Should Buy as Stocks Bounce

Stocks in this article: AXPAZOJNJKVMW

VMWare

VMWare (VMW) is the league leader in computer virtualization, the software that enables a single physical computer into multiple virtual machines. The real-world uses of the firm's technology range from making data centers more cost efficient to operate to enabling employees remote access to their work PCs. Virtualization is big business because it's complex and it's hugely cost effective -- it makes far more financial sense for a data center to license VMW's software than it does to buy additional high-cost servers and rent more space to install them. The rising tide of data in the cloud bodes well for VMW in 2013.

The datacenter infrastructure business has largely been VMware's bread and butter since the firm's founding, but desktop solutions have become an attractive (if competitive) market for the firm. A robust customer Rolodex gives VMW plenty of corporate doors to knock on for the desktop business, and much like the credit card business, it's likely that a rising tide in virtualization will lift all ships in the near-term.

The victories that VMW earns right now are going to matter a lot down the line. That's because datacenters have huge switching costs if they decide to go with a different virtualization vendor, so customers aren't likely to jump ship unless they've got a good reason. International sales should continue to be a big growth opportunity for VMWare over the next few years.

Kellogg

Food manufacturer Kellogg (K) is more than just its portfolio of breakfast cereals -- the firm also owns convenience food brands such as Keebler, Pringles and Morningstar Farms. That product diversification offers Kellogg some distinct advantages, particularly because it enables firm to avoid concentrating risk in a single product line but it still lets the firm consolidate its distribution efforts to cut costs.

Like most food manufacturers, the biggest headwind for Kellogg in recent years has been input cost inflation. As agricultural commodities like corn and wheat uptick in price, K has to make the difficult decision of eating costs and ceding net margins or hiking prices and potentially ceding its market share. While margins haven't been as robust in recent years as a result, Kellogg has been doing a decent job of managing those risks.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 16,691.65 +13.75 0.08%
S&P 500 1,956.91 +6.09 0.31%
NASDAQ 4,463.5090 +10.7170 0.24%

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