Top 5 stocks of the week and how to trade them

Published Fri, Aug 28 20152:23 PM EDT

CNBC Pro highlights the top performing stocks this week and analyzes whether the good times will continue for these companies. (The price change was calculated as of midday Friday so it is subject to change. If one stock led multiple indexes, we profiled the second best, too.) Best in the Dow: Intel , up 7 percent for the week Source: FactSet Intel rebounded from a 52-week low as the market got more optimistic about the company's long-term technology roadmap. The company recently held the Intel Developer Forum conference, where it outlined future products such as the 3-D Xpoint, which the CEO called, "the biggest breakthrough in memory technology in 25 years." "We left the (IDF) show increasingly confident in our long-term thesis that is enhanced by exciting strides in the memory market," Matthew Ramsay of Canaccord Genuity wrote in a note to clients. "We maintain our bullish view on improving Intel fundamentals highlighting an increasing mix of revenue and profit driven outside of the PC market." Any uptick in sales from the Windows 10 operating system upgrade cycle and launch of SkyLake processors in recent weeks would be catalysts for the shares in the second half of the year. Ramsay has a 12-month price target of $39, a 37 percent rise from today's price. Best in the S & P 500: Netflix , up 14 percent for the week Source: FactSet Shares of the online video streaming company rallied strongly as traders used the pullback as an opportunity to buy the dip. "In wake of a 20 percent correction, (we are) reiterating outperform and reasserting Netflix as one of our top 'Net Longs', due to positive US, UK and Brazil survey results," wrote Mark Mahaney of RBC Capital Markets. Read More Favorite picks from managers of top-ranked fund Mahaney's survey showed churn rates were at record lows, while customer satisfaction and usage were at record highs, which may signal a solid current Netflix quarter. He raised his price target to $140 from $125, suggesting a 18 percent gain from here. However, the normally optimistic Street has an average 12-month price target for Netflix of $118, which is approximately where the shares are now trading. It may be prudent to look at other companies with higher upside potential and risk-rewards. Best in the Nasdaq 100: Avago , up 13 percent for the week Source: FactSet Avago, the analog semiconductor supplier, surged after the company reported strong top- and bottom-line results. "Avago reported a solid beat and guide despite market turbulence and more cautious commentary from competitors. Apple continues to drive results as the company's mobile segment drove July revenues and is set up for seasonally strong October quarter," Brean Capital analyst Mike Burton wrote in a note to clients on Thursday. As a key supplier for the iPhone, Apple's launch event next month is a catalyst for the shares. Burton's 12-month price target is $170, which would be 35 percent upside. Best in the S & P MidCap 400: Big Lots , up 18 percent for the week Source: FactSet Big Lots, the largest closeout retailer in the country, also posted impressive earnings this week with the stock rallying off the company's numbers. "We believe Big Lots' better-than-expected second quarter 2015 results provide further evidence the company's turnaround has ample runway ahead," Anthony Chukumba of BB & T wrote in his earnings note. "(We) were particularly encourage by sixth consecutive quarter of positive comps." JPMorgan's analyst Matthew Boss, who has a neutral rating on the company, said the earnings could trigger a short squeeze as Big Lots has big exposure to housing through furniture sales. Big Lots should benefit from continuing solid housing trends. BB & T's Chukumba has a 12-month price target of $56, 15 percent upside from current levels. Best in the Russell 2000: Invitae , up 29 percent for the week Source: FactSet Small-cap Invitae is a provider of genetic diagnostics for hereditary disorders. The stock spiked on a 13D SEC filing by 20.6 percent shareholder Baker Brothers Advisors signaling possible activist moves. Earlier this month Leerink's Dan Leonard raised his 2015 test volume estimate after the company reported earnings. He wrote in a report to clients, "Sales force expansion should help to sustain test volume growth." Read More 4 hedge fund managers offer advice on volatile market Leonard has a $20 12-month price target on Invitae, an 80 percent gain from today's price. — Michael Bloom contributed to this story.

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CNBC Pro highlights the top performing stocks this week and analyzes whether the good times will continue for these companies.

(The price change was calculated as of midday Friday so it is subject to change. If one stock led multiple indexes, we profiled the second best, too.)