2 Bullish Stocks In A Bearish Climate

Ross Stores (ROST)

Ross Stores is an off-price retailer that purchases unwanted inventory from name-brand manufacturers, department stores, and other retailers at an opportunistically low price. ROST then sells it at heavy discounts off the regular retail price to value-conscious consumers.

ROST stores carry fewer types of retail items than department stores, but have expanded offerings over time to include things like maternity wear and small furniture.

This company can do no wrong! Over the past three months, the consensus estimate has risen from 87 cents. Analysts are expecting earnings of $3.37 per share for the fiscal year while net income has been growing for three straight quarters.

Look for a Bull Call Spread on this one. It has nice options prices.

• Buy an August 2012 call with a strike of '62.50 (priced at $3.30)
• Sell an August 2012 call with a strike of '65.00' (priced at $2.10)
• Net Debit to Start: $1.20
• Maximum Profit: $1.30

NiSource Inc. (NI)

NiSource Inc., an energy holding company operating in three segments: Gas Distribution Operations, Gas Transmission and Storage Operations, and Electric Operations. The Gas Distribution Operations segment provides natural gas service and transportation to residential, commercial, and industrial customers.

This bullish utility company also has a nice 4.30% dividend as it continues to move up unabated. Things continue to move well for this company. Its Q1 EPS of $0.76, is $0.05 better than the analyst estimate of $0.71. The stock currently trades at around 25.01 and analyst Wunderlich Securities increased its price target to $26 as gas infrastructure expansion continues to drive value for the company.

Being very bullish, this offers a nice options opportunity if the stock pulls back under $25. At that point we would buy the $25 option out a couple months and as soon as it hits back above the mark, resell for a profit! We expect the company to continue to move up.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.