The big S&P 500 index finished last week on a high note, ending up a whopping 0.07%, shy of all-time record highs, at 2400.98. Simply put, after correcting sideways for the last couple of months, stocks are a breadth away from being higher than they've ever been before.
That's a very bullish thing for investors, and for reasons most folks probably don't realize.
You see, "new highs" may sound unusual or special, but they're actually a pretty common circumstance for Mr. Market. In the six decades since the S&P 500 was founded, the big index has actually spent nearly half of its trading sessions either at all-time highs or within just 5% of them.
As markets test record territory this week, it makes sense to bet on a new set of "Rocket Stocks" that look primed to outperform the rest of the market in May.
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 398 weeks, our weekly list of plays has outperformed the S&P 500's record-breaking run by 78.1%.
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Now without further ado, here's a look at this week's Rocket Stocks.