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Stand up and be counted!

For what you are about to receive

We are the dealers

We'll give you everything you need

Hail, Hail to the good times

'Cause rock has got the right of way

We ain't no legend, ain't no cause

We're just livin' for today

For those about to rock--AC/DC

These four stocks about to rock will "give you everything you need. Hail, Hail to the good times" for JetBlue Airways Corporation (NASDAQ:JBLU), Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ), Ocwen Financial Corporation (NYSE:OCN) and Arris Enterprises Inc. (NASDAQ:ARRS) are about to "stand up and be counted." The earnings growth in these four stocks has earned them "the right of way."

The unexpected settlement agreement between merger partners US Airways (LCC) and American Airlines with the Department of Justice has likely created a field day for JetBlue. JBLU shareholders stand to benefit from the open slots created at Washington's Reagan and New York's La Guardia airports. Already, seven of the 14 covering analysts have increased their earnings estimates for JBLU for 2013 and 2014. With $3.38/share in cash, JBLU can afford to pay the expectedly large price for these slots. Analysts are forecasting 32.7% earnings growth in 2014 and 22.35% over the next 5 years. As always, we want to know the price we are having to pay for those earnings; with a forward PE of $13.32, you can rest well for "what you are about to receive."

A cautionary note on JBLU is the 22% short float as of 10/15/13. As many of you know, the potential positive here is in creating a "short squeeze," but the potential negative is that someone with large amounts of capital knows something we don't. The stock is trading just over its book value of $7.15, and as I stated earlier, has $3.38 in cash. Given the sum of all parts on JBLU, I believe it is one of the four stocks about to rock, and I recommend owning shares.

Jazz Pharmaceuticals, Inc. is not a new name to anyone who has followed Sabrient strategies in 2013. The stock is up 98.59% YTD, which is great for those who bought it at the beginning of January 2013. The good news for those of you reading this article is that JAZZ is also one of four stocks about to rock, and it has all the pieces necessary to continue to go higher. One would expect after such a meteoric rise in stock price to find JAZZ expensive relative to its peers. However, earnings have increased 95.3% over the last five years, allowing us to enter the position at a relatively cheap 13.71x 2014 earnings. Analysts expect 24.8% growth in EPS next year and 23.44% over the next five years. The main risk to JAZZ's growth is competition from generic brands attempting to compete with its patents. I believe the risk far outweighs the reward and recommend JAZZ as one of the four stocks about to rock.

Ocwen Financial Corporation stubbed its toe for the first time in a while during Q3 2013. This pause in the action provides investors a fresh chance to gain exposure to this earnings machine. Analysts are expecting OCN's earnings to grow 141.4% next year and 25% over the next five years. Remarkably, we can purchase this anticipated growth for only 9.88x forward earnings. I attribute the Q3 miss of $0.20 ($.93 versus the consensus estimate of $1.13) to timing issues related to the acquisition of ResCap and OneWest. OCN has developed a niche in the servicing and origination of mortgage loans, providing a competitive advantage and the ability to earn more than competitors when acquiring loans which are in need of servicing. OCN has a strong balance sheet and healthy liquidity, making the stock an easy selection in the four stocks about to rock.

Arris Group, Inc. isn't a household technology name; but perhaps the time has come for investors at least to see that it is ready to "stand up and be counted." Arris Enterprises develops, manufactures, and supplies telephony, data, video, construction, rebuild, and maintenance equipment primarily for cable system operators in the broadband communications industry worldwide. Out of the seven covering analysts, six have revised earnings estimates up for the coming year, in the last 30 days. These analysts believe the company will grow earnings 38% per year over the next five years. We can enter the position today at only 9.24x 2014 earnings expectation. ARRS has $4.82 in cash and a book value of $9.37 to support the relatively cheap price of $18.13 at which we can acquire it today.

The theme of the four stocks about to rock is that exceptional growth opportunities are available at a relatively cheap price. These investments will likely have long term tax rate as unless something changes about the growth profile I would anticipate being in these positions for longer than 52 weeks. My recommendation is to add JBLU, JAZZ, OCN, and ARRS to your portfolio and be thankful for "what you are about to receive."

RECOMMENDATION:

  • Buy JBLU at the market, Tuesday November 19, 2013, based on a 20 stock equity portfolio I recommend no more than 5% of your portfolio in each position
  • Buy JAZZ at the market, Tuesday November 19, 2013
  • Buy OCN at the market, Tuesday November 19, 2013
  • Buy ARRS at the market, Tuesday November 19, 2013

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.