Thanksgiving may still be a week and a half away, but Mr. Market is finally giving investors something to be thankful for this November.
U.S. markets rallied hard last week, breaking free of the corrective downtrend that's harangued the S&P 500 since the end of the summer. Market participants are finally feeling good about the fact that the election is over and done with, it seems. And, significantly, the rebound last week puts the S&P back to within 1.4% of its all-time highs this fall. At the same time, the S&P is back on track to potentially end 2016 up double-digits, a feat that seemed incredibly unlikely just a week ago.
So, to capitalize on that bullish shift in stock market sentiment this week, we're turning to a fresh set of Rocket Stocks worth buying for November gains.
In case you're not familiar, 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. In the last 373 weeks, our weekly list of five plays has outperformed the S&P 500's record-breaking run by 79.81%.
So, without further ado, here's a look at this week's Rocket Stocks.
Up first this week is conglomerate General Electric (GE) , which is also an Action Alerts PLUS holding. GE was one of the biggest mega-cap winners last week, rallying almost 8% between Monday's open and Friday's close. That still doesn't do much for longer-term holders of this stock yet -- GE is still down 1.4% on a price basis since the start of 2016. But the about-face in GE's price trajectory bodes well for this stock's year-end performance, especially considering the fact that analyst sentiment is swinging higher at the exact same time.
GE is one of the biggest diversified manufacturing companies in the world, building everything from jet engines to medical devices to home appliances, and everything in between. The firm has dramatically shifted its sales mix in recent years as management has pared down GE's exposure to financial services in the years since 2008. Now GE's industrial businesses are getting more attention again at a time when General Electric's global footprint could be about to benefit from some macro tailwinds.
One big driver behind GE's rally last week was the prospect that a Trump presidency could drive policies that reverse the prolonged rally in the U.S. dollar. That shift could be a boon for large U.S.-based multinationals, of which GE is the poster child. A weaker dollar means that exports become more competitive, and it also means that sales generated in foreign currencies abroad translate into fatter profits when reported in dollars. With rising analyst sentiment in General Electric this week, we're betting on shares.