BALTIMORE (Stockpickr) -- As Monday's trading kicks off this morning, investors should be expecting a fairly muted week for Mr. Market. We've been on the receiving end of "investor overload" for the last several months, so a quiet week isn't necessarily a bad thing -- especially since the market is still in "correction mode" this week.If there's a single word that best describes the rally we've been in since the start of June, it's "orderly." Stocks have bounced upward in a well-defined channel for those last three months, giving investors and traders a predictable range that the S&P 500 is likely to stay stuck in. Now the S&P is cooling off a bit from the top of the channel, but not for long. >>5 Stocks Poised for Breakouts The S&P is nearly halfway back down to support today, a signal that buying is likely to pick up again soon if this channel stays in force. And with August drawing to a close this week, that's potentially a very good thing. Historically, the fall months are significantly stronger for equity investors than the summer is, so we'll have the extra oomph of seasonality helping to push stock prices higher in September and beyond. That's reason enough to start looking at a new set of Rocket Stocks worth buying this week. For the uninitiated, "Rocket Stocks" are our list of companies with short-term gain catalysts and longer-term growth potential. To find them, I run a weekly quantitative screen that seeks out stocks with a combination of analyst upgrades and positive earnings surprises to identify rising analyst expectations, a bullish signal for stocks in any market. After all, where analysts' expectations are increasing, institutional cash often follows. >>5 Stocks Under $10 Set to Soar In the last 165weeks, our weekly list of five plays has outperformed the S&P 500 by 77.73%. Without further ado, here's a look at this week's Rocket Stocks.
eBayFirst up is online auction house eBay ( symbol). eBay's namesake auction platform owns around 15% of all the world's e-commerce volume, an impressive feat considering the more hands-on nature of buying or selling on eBay versus a more traditional online retailer. There's considerable value in the ability to pair buyers and sellers -- and eBay has built itself a seemingly impenetrable moat for providing that service. But auctions aren't eBay's biggest focus anymore. That's because the firm makes up nearly half of its sales through its online payment arm, PayPal. At first, PayPal was little more than a way for eBay to keep auction payments in-house. Today, though, the firm is working hard to make PayPal a relevant offline payment method that's used at brick-and-mortar retailers too. Already, the firm has made some major inroads, with a new deal with Discover Financial Services (DFS) that will dramatically increase the usability of PayPal's digital wallet product. >>5 Consumer Stocks Hedge Funds Love All of that said, PayPal has earned a reputation for being difficult to deal with and locking up customer or merchant funds for months at a time. If the firm wants to keep growing PayPal (and taking home big fees for its trouble), then it'll need to resolve those customer service issues to be more in line with other payment networks. In the meantime, the growth trajectory of both the auction businesses, and PayPal is indisputably upward.
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