Look for Resting Stocks

 | Mar 19, 2012 | 6:33 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:
































Amid of host of unbelievably good charts -- including almost every single bank, homebuilder, real estate investment trust and retail play -- comes a group that can only be described as the senior growth cohort, the stocks with both terrific earnings power and higher growth than the average stock that seems to have real staying power.

We are all blinded by the staying power of Apple (AAPL) (and now Apple's cash!), but have you looked at Nike (NKE) lately? I know it is reporting this week. We should only hope it sells off! That's what we got on Ross Stores (ROST) on Friday, but I bet that's just a temporary stop as we saw with Bed Bath (BBBY) and Costco (COST) recently. Meanwhile, the breathtaking moves in Chipotle (CMG), Alexion Pharma (ALXN) and Monster (MWW) seem to know no stopping, as is the case with Intuitive Surgical (ISRG), Priceline (PCLN) and F5 (FFIV). (All of the internet video plays seem to have come alive again including Akamai (AKAM) and Level 3 (LVLT) of all things.)

You can't think about growth without looking at the amazing performances of Starbucks (SBUX) and Whole Foods (WFM), both of which continue to be upgraded because of creeping number bumps.

What's propelling a lot of these moves? Frankly, it is part of a virtuous circle I have only seen a couple of times in 32 years of investing: the overrunning of price targets.

Each morning I gather the research and I am amazed right now about how stocks are relentlessly overriding price targets and forcing analysts to come on every morning and take targets higher. We hear about it en masse when it comes to Apple, but all of the other stocks I just mentioned have been similarly bumped on a repeated basis.

Purists probably hate this stuff. But they shouldn't because it has to do with a negative mindset of the analysts to begin with. They have made their price targets in a more bearish 2011 atmosphere instead of 2012, where everything save the price of gasoline seems to be on target.

Watch these bumps. They are really working on all of these stocks.

How can you get ahead of them? I like to pick on the resting stocks. Costco and Bed Bath rested after they reported. Right now McDonald's (MCD) is resting.

To me that's just a matter of time, perhaps the next monthly number, before the price bumps begin anew.

Just spectacular action. On a daily basis.


Editor's Links

More from Jim Cramer:

Columnist Conversations

As far as TSLA is concerned, I still have a higher target above the market at the 409 area.  I stated in ...
The TLT setup discussed in my last commentary is a bust. Key support was violated and it violated the recent l...
BBY is getting smoked this mornings(weak forecast).  The stock is off 8% after opening the session with a...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.