A few sleeper stocks set to sizzle this summer

Chart watchers take great pride in identifying diamonds in the rough for their clients. Janney Montgomery Scott technical analyst Dan Wantrobski screened the universe of stocks that are covered by his firm. “Most of the ideas come from the long-term weekly and monthly charts which show bullish basing efforts within groups that may not necessarily be in favor at the moment,” Wantrobski said.

McDonald’s Corp.’s stock has underperformed the broader market by a wide margin over the last year, as the fast-food giant has struggled to adapt to the changing tastes of its customers, fend off intensifying competition and recover from a scandal in China involving the sale of expired meat. But despite the widespread negative sentiment, the stock has been quietly building a bullish base on the longer-term weekly charts, Wantrobski said.

Wantrobski said Wendy’s chart is one of the most bullish long term, showing potential for the stock to run up about 30% to the next key target. Wantrobski said he remains bullish on the stock as long as it stays above chart support at the $9.50-to-$9.60 level.

Zynga Inc.’s stock has struggled over the last couple of years, but a recent period of strength--it has run up 14% year to date while the S&P 500 has gained 3% -- has pushed the stock above a long-term downtrend line, suggesting a new uptrend has begun.

EBay Inc.’s stock has been mostly stuck in a range between $50 and $60 since the beginning of 2013. The fact that the e-commerce company’s stock EBAY, appears to have started a new uptrend relative to the S&P 500, earlier this year, is also a bullish development, Wanstrobski says.