Rocket Stocks for the Week

These stocks could surge higher in coming days.
By Jonas Elmerraji ,

BALTIMORE (Stockpickr) -- What a month January was. With the worst month for stocks in close to a year now behind us, the big question that remains is whether February will bring a turning of the financial tides for investors.

To be fair, a couple of factors came into play in January's descent. Technically, the broad market was overbought coming into 2010, a factor that left traders with their collective fingers on the "sell" trigger. Likewise, poor performance in a few key earnings numbers earlier this month set the tone for the bears.

But things are looking up.

Last week, data showed that we'd just experienced the best quarter of economic growth in the last six years. And earnings numbers and

dividend increases

continue to point to improving stock fundamentals. This week, we'll try to take advantage of those factors with our Rocket Stocks list.

Rocket Stocks, Stockpickr's weekly list of beaten-down stocks with near-term growth catalysts and long-term growth potential, had a strong week last week, outperforming the S&P 500 index by 5.5%.

Here's a look at

this week's list

.

Mexico City-based wireless communications company

America Movil

(AMX) - Get Report

has had a foothold on the Latin American wireless market for some time now. But this week, with earnings scheduled for Tuesday, the catalyst for a price jump is in place.

America Movil's is one of the most desirable wireless brands in the world right now. During the height of the Latin American equity boom of the last few years, the highly profitable company was considered a go-to stock for investors seeking diversification abroad. And now, with 70% of the Mexican wireless market and growing shares of markets in other Latin countries, the company continues to weigh in as one of the strongest fundamental plays in the region.

To be sure, that favor with Wall Street played into the stock's generous valuation toward the beginning of 2008. But following a substantial crash overseas alongside our domestic markets, America Movil is sure to attract new money as it delivers strong numbers. The company is scheduled to release its fourth-quarter financials tomorrow.

Amazon.com

(AMZN) - Get Report

is no stranger to our Rocket Stock lists. We've turned to the company in the past to take advantage of retail prowess that few brick-and-mortar stores can match.

Last week, the company reported fantastic numbers for the fourth quarter of 2009, fueled largely by an improvement in year-over-year holiday sales. But despite its impressive turnout, a bear-biased market kept long-side investors from seeing much of a price jump.

But going into this week, with the potential for a bullish turn early in Monday's trading, we're going to capitalize on the stock's positive momentum and play it post-earnings.

There are plenty of reason to bet on Amazon.com right now. Low prices and global reach make it an obvious choice for cost-conscious consumers who have become more apt to make purchases -- if the price is right. For investors, that's translated into high returns on capital and equity despite sporting the thin margins necessary to dive low-priced sales.

While Amazon.com managed to beat the market by a respectable clip last week, it still only gained 3.28%, a far cry from the jump you'd expect on 34% sales growth. As a result, we're watching this stock closely going into this week.

Another frequent Rocket Stocks play that we're returning to this week is payment processor

Visa

(V) - Get Report

.

Unlike a few of its competitors, Visa is a transaction processor, not a lender. While that meant lower profits in the past, it's a strategic decision that's paid off in spades following the credit crunch. That's a market position that's also enabled Visa's colossal share of debit cards -- a payment medium that credit-wary consumers have turned to en masse as credit limits tightened and APRs rocketed

Today more than 60% of payment cards in the world carry the Visa logo, making the brand one of the most valuable. But that dominance has also translated into strong profitability, with net margins currently ringing in right around 30%. With deep economic moats and a terrific risk profile, the fundamentals are definitely buy-worthy for Visa.

We're betting that fiscal first-quarter earnings on Wednesday will be enough to catalyze an intraweek pop in Visa's shares.

For more stocks that made this week's cut, including

General Electric

(GE) - Get Report

and

Ralph Lauren

(RL) - Get Report

, check out the

Rocket Stocks portfolio

at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.

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