Update from 7:01 a.m. EDT

For my weekly Rocket Stocks column, I like to find beaten-up stocks that I believe have the potential to snap back in the coming days because of a specific catalyst.

I constantly check the lists of 52-week lows and analyst downgrades lists in the hope that I spot an oversold gem from which readers and fellow investors can profit.

Another great place to check daily is the 52-week high list, which offers some possible momentum plays in which Wall Street currently believes.

One of the keys to choosing rocket stocks that are ideal for a stock-picking contests like TheStreet.com's Beat the Street is to find high beta stocks with upcoming catalysts and exploit the stock-specific news.

Before we get to this week's Rocket Stocks, let's take a quick look at how last week's picks fared.

  • AgFeed Industries ( FEED): Finished the week up 9.5% after earlier in the week climbing more than 17% to a new 52-week high.
  • Zoran ( ZRAN): Finished the week up 9% after offering better-than-expected second-quarter revenue guidance.
  • Cemex (CX): Finished the week up 5%.
  • Eastman Chemical (EMN): Finished the week up 3.9%.
  • Celanese (CE): Finished the week up 3.5%.
  • International Coal Group ( ICO): Finished the week up 2.4%; however, the stock climbed more than 17% at one point to a new 52-week high earlier in the week.
  • Potash (POT): Finished the week up a slight 0.8%.
  • EMC (EMC): Finished the week down 1.6% despite solid earnings out of VMware (VMW).
  • Nokia (NOK - Get Report): Finished the week down 1.2%.
  • Diamond Offshore (DO - Get Report): Finished the week down 5.3% on the week after the company posted earnings that fell short of Wall Street estimates.

Now let's take a look at the Rocket Stocks for the Week of April 28-May 2.

First up this week is Manitowoc ( MTW - Get Report), a maker of international cranes, trucks and ice-cubes machines. The company is set to report its most recent quarterly financial results after Monday's market close.

Investors have seemingly forgotten about this stock, which has fallen from a 52-week high of $51.49 set in late December to about $39 currently. That creates an opportunity. Shares of Manitowoc are now at a level from which they have the potential to climb higher should the company beat profit estimates this week.

Shares of Manitowoc are reflecting an inaccurate assumption that global growth is slowing. In fact, recent earnings reports suggest otherwise.

With crane operating margins in the high-teens and estimated earnings per share as high as $3.45 for 2008, Manitowoc could move much higher in the coming week.

Another name to keep on your radar is Oil States International ( OIS - Get Report), which offers various services for natural gas and oil well sites and also is involved in the deepwater offshore drilling products business.

Despite being in all of the right market segments, Oil States is still dirt cheap. In fact, its forward price-to-earnings ratio is 9.8 and the company has a P/E-to-growth ratio of 0.4.

Oil States business is on fire as well. In fact, total revenue has climbed from $971 million to $2 billion in three years and EBITDA has gone from $132 million to $386 million in the same time period. The company is slated to report its latest quarterly results after the market close Tuesday.

For more detailed analysis and the rest of this week's picks, including Bebe Stores ( BEBE), FreightCar America ( RAIL - Get Report) and Walter Industries ( WLT), check out the Rocket Stocks for the Week of April 28-May 2.

As always, to find the snapbacks and potential breakouts on a regular basis, check out these Stockpickr portfolios, which I use in my own research each week:
  • Today's Hot List: This daily list is a must-view every midday to see what stocks are making the biggest moves and why.
  • Always check the Biggest Percentage Losers, a list of stocks that lost big the day before, because they can snap back hard.

    When you check this list on Stockpickr, you can see which stocks are owned by the quality hedge funds and mutual funds. Pay attention to those. They will be buying at the lower prices, so you should be also.
  • Ditto for the 52-week-low list. You must check the above two lists every day if you hope to find volatile stocks.
  • Biotech Short Squeezes: Dendreon (DNDN) and others can often be found in this category.
  • Stocks Rising on Unusual Volume: These are potential breakout stocks.
  • Stockpickr's System Trades of the Day: These are trades triggering that day in various back tested trading systems we've developed.
  • Stocks With Unusual Option Activity: Perhaps someone knows something?
  • Latest Activist Situations: These are beaten-down stocks that hedge funds are accumulating shares of and demanding change in. Believe me, these hedge funds piggyback each other. And once they start rocking the boat, things happen quickly. This should be on your must-view list.

Another place to frequent is the Answers section on Stockpickr, where ideas such as those presented in this article are thrown around daily. And you can further discuss your ideas and share opinions in Stockpickr's Members' Forums section.

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the Financial Times and the author of Trade Like a Hedge Fund, Trade Like Warren Buffett and SuperCa$h. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback; click here to send him an email.

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