Six Hot Summer Stocks (MPX, MAR, CAB, DKS, IBM, INTC)

Summer is fast approaching and with it comes hot temperatures and a new set of hot stocks. With the economy finally beginning to stabilize, we are seeing steady gains across markets. When the temperatures are high and the sun is shining, nothing is better than getting in a boat and sailing, or motoring out to sea. When the economy collapsed, it became increasingly common to see water crafts parked outside homes with a “for sale” sign. People needed the extra income just to pay the bills, and certainly not many people could afford or justify purchasing expensive toys. Marine Products Corp MPX felt the strain near the end of 2008 and remained flat until mid 2010. MPX has since been growing at a slow and steady pace, but should gain momentum as we move further away from the recession. Summertime also means summer vacation. The kids are off school and travel is on everyone's mind. If you like to travel in style, Marriott International MAR hotels can be found across the world. Marriott also saw a dip in late 2008 but is coming back and is expected to have a good summer. Some people would prefer to get back in touch with nature on their summer vacations by going camping or enjoying outdoor sports. Cabela's Incorporated CAB was not exempt from the economic downturn, but unlike the other summer stocks, Cabela's recovered fast and has already experienced 32% YTD growth. Cabela's top competitor, Dick's Sporting Goods DKS, has been experiencing the same trends only with more significant growth of 10% YTD. Dick's Sporting Goods' key competitive advantage lies in the number of locations nationwide, while Cabela's has only 31 stores nationwide. One industry that will be hot all year-round for years to come, is technology. According to James Brumley of Investopedia, “International Business Machines IBM got the party started by topping Q1 earnings-per-share estimates of $2.30 with an actual operating profit of 2.41 per share. Intel INTC followed suit by posting a per-share operating profit of 59 cents. Both companies beat last year's comparable income, and both shared an optimistic vision about the remainder of 2011.”