10 Stocks That Should See Gains This Week

by: Brian Nichols

Since Wednesday, August 10th the stock market has tried to recover a portion of the loss it had seen over the last month. There have been various companies which saw large gains throughout this time period as investors took advantage of undervalued stocks. The following companies all experienced gains during this 3 day period and I expect them to continue seeing gains this coming week.

Alcatel-Lucent (ALU) gained 13.5% over the last 3 days still leaving a loss of 30% in one month. The company released earnings which played a part in the monthly loss. The company posted a slight increase in revenue and decreased assets yet increased total debt. The company decreased total assets and increase debt to assets over the last 4 years. The stock may continue to rise during the short term but I do not expect the stock to reach $5.50 anytime soon until the company shows a sign of accelerated growth.

Lululemon Athletica (NASDAQ:LULU) gained 15.23% over the last 3 days still leaving a loss of 3% in one month. The stock dropped for no fundamental reason during the market sell-off. The company trades with a high P/E which made it easy to push the stock down during this time period. During the last few days the stock has posted consistent gains making up for the loss it had experienced. The company has great potential as its products are specialty items intended for exercise purposes with a focus on yoga and running. LULU continues to post quarter over quarter and year over year gains in nearly all financial categories and shows no signs of slowing down. The stock was trading near 52 week highs before the market downtrend. I expect the stock to continue seeing gains over the next few weeks potentially passing 52 week highs as excitement surrounding the company continues to increase.

Urban Outfitters (NASDAQ:URBN) gained 8% over the last 3 days still leaving a loss of 6% in one month. The gains from this company are a result of investors anticipating better than expected earnings. The company missed the last two quarters and investors hope that expectations may be low enough to the point where the company can surpass these expectations. Regardless of expectations, the company has strong fundamentals. It posted an increase in revenue, EPS, and assets year over year for the last 5 years. The company has no debt, which leaves many options available for the future, including buy-out possibilities. I would buy this stock but wait until after earnings are released because I fear the reaction if earnings are below estimates.

Amarin Corporation (NASDAQ:AMRN) gained 20% over the last 3 days still leaving a loss of nearly 7% in one month. This company has seen yearly gains in excess of 430% as its lead drug AMR101 has investors very excited. The company surpassed all levels of clinical trials including two pivotal phase three programs. The stock trades on future and promise and not fundamentals, which always makes me nervous. There is no reason to believe this drug will not be granted approval, however the FDA has made questionable decisions in the past. This stock offers a good opportunity for investors who are trading short term, as it will most likely continue to rise as the excitement builds over the next several months.

Goodyear Tire and Rubber Company (NYSE:GT) gained nearly 9% over the last 3 days still leaving a loss of more than 20% in one month. The company released strong earnings during this time period with an increase in revenue and net income year over year. The company continued to increase assets but failed to make any substantial difference in total debt reduction. I am optimistic about the company's future and believe the new Air Maintenance Technology could become very successful. I believe the stock's current price will return great profits in the coming years as the company is on pace to deliver its first year of net income since 2007, with much higher revenue. I believe these gains will continue.

Boise Inc. (NYSE:BZ) gained 10% over the last 3 days still leaving a loss of more than 25% in one month. The company announced earnings that missed estimates by 0.05. I view the earnings completely different, revenue and assets significantly increased while total debt decreased. I have never been a fan of the Boise balance sheet, I always thought the company had too much debt to assets. But the company has made significant progress in decreasing the debt to assets percentage. The stock may not be the best long term investment, but at $5.72 with a P/E around 5.50 this stock is undervalued, making it a short term buy. I will however need to see future earning reports to judge the long term potential of this company.

RPC, Inc. (NYSE:RES) gained nearly 14% over the last 3 days still leaving a loss of nearly 3% in one month. The company announced great earnings where profit more than doubled and revenue increased by 75% year over year. The company shows very little downside, as I expect continuous growth based on the much improved income statements and balance sheets year over year. I anticipate the stock to continue seeing gains both short and long term.

CVR Energy (NYSE:CVI) gained 13% over the last 3 days leaving a loss of only 0.27% in one month. The company released impressive earnings on August 4th during the market downtrend which pushed the stock lower. The company is now trending higher as a result of the earnings report that announced quarterly sales gaining 44% with adjusted net income of 1.48 a gain from 0.22 per share year over year. The company is on pace to significantly outperform earnings year over year. I expect CVI to continue seeing gains, the earnings report should have pushed the stock higher, and I believe the stock could see 52 week highs as it adjusts to earnings.

Sirius XM Radio (NASDAQ:SIRI) gained nearly 7% over the last 3 days leaving a loss of more than 15% in one month. The company released a much improved earnings report on August 2nd and experienced a loss. The loss was more related to the market than the individual company fundamentals. During the quarter, the company announced a 20% gain in EBITDA and higher total revenue year over year, along with a higher retention rate with subscribers. Consumers and investors are both awaiting the new Sirius 2.0 which could propel the company to a new level. I expect the stock to see considerable gains in the coming week as investors reflect on earnings and the possible future. Regardless of how investors view this company, most would agree the stock price is a bargain. I believe those who buy at the current price of $1.87 should be rewarded both short and long term for the reasons listed above.

General Motors (NYSE:GM) gained nearly 6% over the last 3 days leaving a loss of 16% in one month. The company released earnings on August 4 which posted a profit that nearly doubled. Revenue grew by 19% which should remind investors of the growth within this industry. General Motors is going to be the first among companies that sees a loss in fear of a recession, because of past performance. However, the company is much different today than it was in 2008, it is now profitable and has significantly lowered total debt. There is little downside to buying this stock at the current price, the earnings in most major categories have continued to increase. I expect revenue and earnings per share to dramatically increase over the next 2 years, as our economy improves and the company manufacturers more vehicles with fuel efficiency in mind. I also expect investor confidence within the automotive industry to increase which will raise the price to earnings of 5.59 giving long term investors a better return.

Disclosure: I am long SIRI, GM, CVI.

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