Top-Rated Stocks the Leaders Loathe

Momentum investors are stock players who get behind companies that have the wind in their sails. Contrarian investors typically pick up the cigar butts the market has tossed aside. So what do you call investors who turn against winners? Sourpusses? Shorts?

Over on Motley Fool CAPS, we sometimes call them the savviest investors around. Not only does the 76,000-strong investor-intelligence community rate thousands of stocks every day, but the players themselves get rated, too. The best of the lot -- what CAPS calls All-Stars -- consistently outperform their peers over time and are assigned ratings of 80 or greater.

When an All-Star player sours on a top-rated stock, perhaps we should take notice. Perhaps the player's found a chink in that highflier's armor, or a question mark in its financial footnotes. Or maybe it's just a hunch. That's why these tables aren't lists of stocks to buy or sell -- just starting points for further research.

Here's a list of stocks that recently drew the thumbs-down from some All-Stars:

"Just" 13,700 investors have rated these stocks, with an average 96% of them being bullish on their prospects, and 98% of the All-Stars who weighed also thinking they'll outperform the market. So what might have turned some of CAPS' top players against these otherwise widely admired companies?

Informing Infosys
Indian IT consulting firm Infosys is a top-rated stock that has seen its share price suffer over the past year. The strengthening Indian rupee has fueled concerns that Infosys might lose its low-cost competitive advantage. It will need that edge to remain competitive against the likes of Accenture (NYSE:ACN), Electronic Data Systems (NYSE:EDS), and McKinsey.

Growth is expected to surge 34% this quarter and as much as 26% over the next five years. Yet differentiating itself remains a chief concern for Infosys, particularly for CAPS investors like moneyjammer, who thinks the company has lost its moorings:

Infosys has expanded too fast and the new management has lost focus on what made it successful. The market is also saturated with Indian companies that provide the same services.

Yet bulls like GS751 think that Infosys's ability to push up pricing on both renegotiated and newly won contracts will allow the outsourcing IT leader to grow, even if it can't match its previous torrid pace:

Fantastic cost control, pricing power remains well also with above average contract [renegotiations]. They are putting their foot down in the global marketplace, with driving growth in Europe. I don't think they will be able to continue their 40%+ growth in the next couple of years but will maintain steady growth at around 20%. This is a wonderful company at a fair price.

With growth surging overseas, there's a chance that Infosys will be able to reverse course and shore up its sagging stock.

Make lemonade from lemons
We know both sides here, but Motley Fool CAPS is more than what a few investors think, even if they're All-Stars. We need your thoughts and insights in the debate. Join us for free.