ETN), one of the stocks I featured as an earnings play this week, handily beat earnings before the market open Monday but lowered its fourth-quarter guidance numbers, sending shares 4.5% lower in premarket trading that day. In my book Trade Like a Hedge Fund, I discuss and show how such gaps down provide great buying opportunities, especially after the companies beat earnings estimates. Sure enough, Friedman Billings Ramsey the next day upgraded Eaton to outperform, sending shares higher. With shares up about 5% so far this week, I would sell to cash in this gain. I also recommended CSX Corp ( CSX) as an earnings play. Shares are up 6% since I wrote about CSX on Monday as third-quarter profit rose 24% and earnings beat estimates. CSX also made headlines after the companny received a letter from The Children's Investment Fund, an activist shareholder investor. The fund laid into CSX's chief executive, saying "Michael Ward has been the highest compensated CEO in the rail industry over the past two years, despite CSX being operationally outperformed by its peers." I like Ward, especially after these latest earnings numbers, but the fund is right about his compensation. I would lock in this 6% gain with CSX here.
Another pick, Intuitive Surgical ( ISRG) is down about 5% since the start of the week, but I would still hold on to it as an earnings play. The medical-equipment company reports after the close tomorrow. I still like SanDisk ( SNDK) ahead of its quarterly report as well. Judging from the major technology companies that reported Tuesday night - Yahoo! ( YHOO) and Intel ( INTC) for instance -- this beaten-up stock could rocket on Friday after the chipmaker reports Thursday afternoon. I've added two more picks to this week's Rocket Stocks list as I believe both Lundin Mining ( LMC) and Genzyme ( GENZ) are well-managed companies that could take off anytime. For further analyses on these and the rest of this week's picks, check out the Rocket Stocks for the Week of Oct. 15th-19th at Stockpickr.com.