Top 5 stocks of the week and how to trade them

Published Fri, May 1 20152:21 PM EDTUpdated Mon, May 4 201510:34 AM EDT

Even though the market is on pace to end the week in the red, a number of stocks bucked the trend. Below CNBC Pro highlights the top performing stocks this week and analyzes whether the good times will continue. (The price change was calculated as of midday Friday, so it is subject to change. If one stock led multiple indices, we profiled the second best, too.) Best in the Dow: Merck (MRK), up 4 percent this week The pharmaceutical giant led the Dow this week after it reported better-than-expected quarterly earnings and released favorable data about the safety of its Januvia diabetes drug. Following the results, the company also raised its projected earnings for the year by about 6 percent. The current consensus 12-month target price calls for a 9 percent move higher from where the stock trades, according to FactSet. Best in the S & P 500: Genworth Financial (GNW), up 14 percent this week Shares of the insurer spiked this week on reports the firm is considering going private and would be open to a potential sale of its life and annuity insurance business, among other strategic options. The company, which has a market value of $4.4 billion, controls about 30 percent of the long-term care market in the U.S. But even with this week's move, which was the largest in two years, the consensus estimate forecast points to further gains. Based on FactSet figures, the stock has a 22 percent upside potential in the next 12 months should it reach the Street's price target of $11. This week, Compass Point upgraded the stock to "buy" from "neutral," citing valuations and the future worth of the company's long-term care business. The research firm believes ticker GNW could hit $12 within the next year, a 33 percent gain from here. Best in the Nasdaq 100: Altera (ALTR), up 11 percent this week The chipmaker's stock touched a four-year high this week on reports that Intel could launch a hostile bid for the company. Since the news of a potential deal emerged late March, ticker ALTR is up 30 percent. According to Reuters, Intel signed a standstill agreement with Altera that is set to expire June 1. But with the stock already up significantly, it may be time to put this trade behind you. The current consensus price target calls for a drop to $39, or 12 percent lower from where the stock trades, based on FactSet figures. Best in the S & P MidCap 400: Atwood Oceanics (ATW), up 16 percent this week The offshore driller contractor was on pace for its best weekly gain in six years, following a strong earnings report. Despite a sharp drop in crude prices, which are down over 40 percent in the past year, the company managed to post a 48 percent increase in EPS compared with the same period last year, while revenue came in 23 percent higher, according to Thomson Reuters. The current consensus estimate calls for a target price of $34 over the next 12 months, which is essentially in line with where the stock trades, based on FactSet data. Following the earnings release, Guggenheim analysts maintained a "neutral" rating on the stock and said they remain on the sidelines as they believe new cost structures will be offset by a "cash burn overhang." Best in the Russell 2000: CARBO Ceramics (CRR), up 34 percent this week Shares of the oilfield services technology company rose this week on a narrower-than-expected loss in quarterly earnings, which sent short sellers running for the exit. In the past 12 months, the stock is down 70 percent, as the collapse in oil prices impacted its business. Short interest for the stock is extremely high at 42 percent, while the consensus target price stands at $29, or 30 percent lower from where the stock trades. Read More 3 ETFs ready to pop on the next market leg higher

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Even though the market is on pace to end the week in the red, a number of stocks bucked the trend.

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

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