BALTIMORE (Stockpickr) -- News that Treasury Secretary Timothy Geithner is delaying an exchange-rate policy report to Congress should have some effect on the market at the beginning of this week as investors digest the implications of that move.
Key members of Congress have been hoping that the Treasury's report would point the finger at China for manipulating its currency, keeping exchange rates low enough to buoy its export numbers. That pronouncement will have to wait for several key meetings with China to take place -- meetings that Geithner says should give the U.S. a more productive attempt at fairly valuing the yuan.
To take advantage of a potential economic uptick, it's time to look at the Rocket Stocks, our weekly list of beaten-down stocks with near-term growth catalysts and long-term growth potential. Last week, a high-risk play on a retail drugstore turned against us, trimming our lead over the S&P 500 to 44.78% in the last 37 weeks. Today, we're taking a look at five more stocks with a strong upside catalyst for the first full week of April. Here's a look at
Bed Bath & Beyond
have been enjoying significant upside in the last year. Shares have jumped 60% over that period, and economic tailwinds look like they could be sending shares higher in the coming week thanks in large part to an April 7 earnings call.
With solid margins among retailers, Bed Bath & Beyond bounced back from a real estate slowdown that practically halted sales for its cornerstone housewares business. Now, however, with consumer dollars back into play in a big way in 2010, BBBY is being given an even bigger chance to impress analysts and investors alike as it marks itself as the best-in-breed home goods retailer.
Shareholder value has already been a priority for Bed Bath & Beyond - the chain has a history of moderate share buybacks, and with around $1 billion for authorized buying power, we could see shares come off the market once cash flow perks back up. In the short term, watch out for earnings on Wednesday.
While consumer spending has perked up for many, Friday's nonfarm payroll numbers reminded analysts that more than 15 million Americans remain unemployed, with a 9.7% unemployment rate. That disparity has meant that while scores of broad market retailers are seeing sales numbers increase, discounters such as
are continuing to see strong sales volumes.
Family Dollar is particularly interesting this week because, like Bed Bath & Beyond, the company reports earnings on Wednesday. Family Dollar has considerable fundamental attributes falling in its favor as well. Besides strong financials -- including a debt coverage ratio of more than 35 -- the company has been making capital investments in next-generation retail infrastructure that should increase store efficiency. With a significant chunk of store leases expiring before 2014, Family Dollar should be able to enter into even more favorable agreements in going forward.
The icing on the cake is Family Dollar's 1.67% dividend yield, which is around 60% higher than the industry-average shareholder payout. All told, we're betting on strong turnout during Wednesday's release.
This isn't the first time agricultural chemical giant
has made our Rocket Stock list, but it could be the most significant time thanks to a key product set to hit new ground -- literally -- in 2010.
Monsanto's research and development department is the key to the nearly $39 billion market capitalization the company sports right now. That very department is responsible for SmartStax, a corn species that has advanced herbicide protection that promises to deliver superior yields to farmers with limited losses. The seeds are expected to be used in 4 million acres of farmland in the U.S. this year. Soybean and cotton variants are planned as well, and could be incredibly significant for Monsanto's profitability in the new decade.
While Monsanto's earnings are important this week, expect more analyst attention to focus on the progress SmartStax is making this year.
For more stocks that made this week's cut, including
, check out the
portfolio at Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
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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
, and has been featured in
Investor's Business Daily