Rocket Stocks for the Week

These stocks, including Lowe's and Nike, could surge higher in the coming week.

By Jonas Elmerraji , Mar 15, 2010 8:13 AM EDT

BALTIMORE (Stockpickr) -- Financial reform should be this week's biggest buzzword as details of Capitol Hill's latest plans start to come to light. With reports that Sen. Dodd's soon-to-be unveiled reform bill will grant the Fed new oversight powers, Wall Street's reception of the proposed legislation could strongly weigh into how stocks start their week.

But new bills aren't the Fed's only appearance this week. The central bank will also be unveiling its latest interest rate decision amid a bevy of economic data that's set to be released in before this coming Friday.

With the markets enjoying unstable gains on hopes of economic recovery, this week's data should prove to be crucial in hanging onto those gains. Instead of hanging on, we'll turn to five Rocket Stock plays this week to try to do one better than the market.

Rocket Stocks, our weekly list of beaten-down stocks with near-term growth catalysts and long-term growth potential, seek to separate the cream from the investing crop. In the last five trading days, our five Rocket Stock picks have delivered 0.07% gains, bringing our performance over the S&P in the trailing 34 weeks to a staggering 45.06%. That means that since last July, investing in our weekly list at each Monday's open and selling at the following Friday's close would have yielded 67.35% gains to date.

Here's a look at this week's five

Rocket Stocks plays

Financial software developer

Intuit

(INTU) - Get Report

has enjoyed a double-digit rally year-to-date, thanks in large part to a sizable increase in second quarter numbers last month. But while the gains have been great for Intuit shareholders, tax season should bring an even bigger boon to the TurboTax maker.

Intuit enjoys a unique market position. With the company's QuickBooks and TurboTax product offerings dominating with more than 80% of the market, Intuit has made a conscious step toward shifting their services from primarily software to Software as a Service (SaaS). The biggest advantage of that shift is the mountain of recurring revenues the company stands to gain from its web-based solutions. With that benefit, however, comes the added risk of storing customers' most sensitive financial data. But as of yet, Intuit's security has ensured that customers keep coming back.

And with double-digit net margins, increased volume in the next month should lead to serious profitability for the company. We're counting on increased analyst sentiment and investor anticipation to buoy shares this week.

Lowe's Companies

(LOW) - Get Report

face a tough competitor in

Home Depot

(HD) - Get Report

, but in a real estate market where consumers are increasingly trying to make upgrades on a budget, both home improvement chains should come out winners. Count on increased analyst sentiment this week.

With more than 1,600 stores under its banner, Lowe's has the size and buying power to compete with the other top home improvement names. And despite an economic downturn that's been especially rough on homeowners, the chain continues to move products. Only 3% of the company's stores weren't cash flow positive in late 2009, and increased consumer spending should see that number even lower going into this year.

Lowe's is focusing on improving its share of higher margin service-based revenues, such as installed products, which the company markets to consumers at lower prices than contractors. Morgan Stanley's Retail Field Trip meeting this week could give the company improved analyst visibility in between earnings releases.

Athletic apparel giant

Nike

(NKE) - Get Report

is no stranger to our Rocket Stocks list. The company offers investors deep margins and a leading brand name already -- and with earnings serving as a catalyst for growth this week, shareholders could see a worthwhile spike in share prices if Nike manages to surprise Wall Street.

Right now shares of Nike are sitting at a 52-week high, a fact that's added technical traders to the mix of market participants who will be paying close attention to the company's third quarter earnings release on March 17. With an increased focus on international and emerging markets sales in recent months, we're betting on a good earnings day for Nike.

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

Agrium

(AGU)

and

Deere

(DE) - Get Report

, check out the

Rocket Stocks portfolio

at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

>>This Week's "Barron's" Roundup

>>Stockpickr's Forums