The first six months of the year threw a plethora of ups and downs at investors as stocks hit a new 52-week high and followed it up with a fresh multi-month low. When all was said and done the S&P 500 was down 5%. Even though only five of the 30 Dow components closed higher for the quarter, there were a few bright spots for the lucky stock pickers. Below are six stocks that shined during the first half of 2010 and have a high probability of continuing the move higher for the remainder of the year.

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The Winners
Netflix (Nasdaq:NFLX) up 115%. The online movie rental company continues to innovate with not only delivering DVDs to your home, but also offering the ability to instantly watch movies online. The company is trading with a fairly high forward P/E ratio of 33.9, but the valuation is acceptable considering the greater than 30% growth anticipated. Technical support for the stock is at the $105 area.

Thoratec (Nasdaq:THOR) up 65%. The niche medical device company concentrates on products used in the cardiovascular area of medicine. The stock is currently trading at an earnings multiple of 73. While this is undeniably higher than that of its peers, THOR has an estimated EPS and revenue growth rate which is significantly higher than that of its competitors. The chart shows strong support for the stock at $42 and resistance is the all-time high of $48 hit in June.

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Keithley Instruments (NYSE:KEI) up 95%. The maker of scientific and technical instruments has approximately 500 products used to measure, connect, control, communicate and so on. KEI is estimated to make 89 cents per share in 2010, putting the forward P/E at 11.50. The one problem is that estimates have earnings falling to 80 cents in 2011. The vital reason KEI made the list is the bullish chart that has strong support just above $8.

Coinstar (Nasdaq:CSTR) up 65%. The company once known for its self-service coin-counting machines has rejuvenated itself with its DVD rental kiosks called Redbox. Fundamentally the company is expected to earn $1.82 per share in 2010 before earnings explode to $2.83 in 2011. Based on the 2011 number the P/E is 16.6 and, when growth is considered, the stock is extremely undervalued. The chart is not the most beautiful, but as long as it holds in the $40s range the stock is a buy.

Cirrus Logic (Nasdaq:CRUS) up 160%. It is not easy to find a semiconductor company that recently hit a fresh 8-year high, but CRUS can claim that distinction. After hitting a high in mid-June near $19, the stock fell 20% to find support near $15. Fundamentally the stock trades with a forward P/E of 14.4, very low for a growth stock in the semiconductor sector.


Polypore International (NYSE:PPO) up almost 100%. The company operates two divisions: separation media and energy storage, but it is best known for its ties to the lithium-ion battery sector. As the market for electric vehicles expands so does the demand for PPO's products.Technically the stock is the strongest of the six, with a nearly perfect uptrend. The forward P/E is 20.0 and growth should only pickup as the electric vehicle market expands globally.

Word of Caution
All of the six stocks mentioned have made big strides in the first half of 2010 and I believe the rally will continue. That being said, always look for weakness to buy into stocks as they do not go straight up. (For more stock analysis, check out Some Positive Signs For The Economy.)

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