However hard the market slams a stock, there's always the chance it'll come bouncing right back. We'll consult our Motley Fool CAPS community to find shares on the rebound, examining one specific sector of the economy in search of companies with rising CAPS ratings.
Among the 1,354 stocks listed under the technology sector in the CAPS' screener, we've unearthed more than a few with five-star ratings. Those accolades signal our 145,000- member CAPS community's confidence that these stocks will beat the market in the months ahead. Let's see what members are saying about the four below:
|
Company |
CAPS Rating |
Recent Price |
52-Week Change |
Est. LT EPS Growth Rate |
|---|---|---|---|---|
|
Akamai |
***** |
$26.37 |
50.4% |
10.3% |
|
Cepheid |
***** |
$15.31 |
74.5% |
16.0% |
|
Alvarion |
***** |
$4.28 |
11.1% |
20.0% |
|
Universal Display |
***** |
$11.36 |
45.4% |
11.0% |
Source: Motley Fool CAPS; Yahoo! Finance.
LT = long-term. EPS = earnings per share.
As the broader market averages have staged a pretty bold recovery -- at least until recently -- tech stocks have staged a pretty strong run-up, too. The average company is up more than 86% from the year-ago period, including a bunch of winners like Wipro, which was up 188% in value, and Unisys
So let's take a closer look at why investors think some of the above companies won't be jumping from the frying pan into the fire.
Some spring in its step
Smartphones and MP3 players and computer screens, oh my! The uses for OLED displays are on the verge of a major surge, and one of the pioneers in the field, Eastman Kodak
Universal doesn't necessarily face a case of grow or die, but CAPS member DarthMaul09 figures the industry is becoming so competitive that Universal will either break out of its shell, or be subsumed by a rival:
I have been looking for a good buy in point and this is probably not it, but for CAPS purposes all I need to do is beat the S&P 500. The way the market looked this last week, cash could probably do this, but since this is not an option, why not pick a company which has the next generation lighting and monitor technology. I suspect that either it will grow to fulfill its destiny or it will be bought out at a premium.
The growth component currently holds sway on CAPS, where 96% of the members rating the display maker believe it will outperform the market. Join them on the Universal Display CAPS page to build on the consensus of future growth.
Testing, testing
There's a rapidly closing window of opportunity for diagnostic test maker Cepheid to exploit, before it needs to capitalize on the balance of its business. It recently received emergency-use authorization from the FDA to sell its swine flu test, which can identify the virus in less than an hour. But because the authorization extends only through April 26, Cepheid will need to fall back on its clinical reagents business to get it through.
That's not such a bad thing. Although system sales fell 17% in the year, and total revenue remained essentially flat, reagents and disposables -- the much larger component of its operations -- jumped 13.5% higher year over year. Management expects revenue to grow about 17% in 2010, using the midpoint of guidance.
Cepheid's CAPS rating has been marching higher over the past year; it now stands at the top, five-star level. While 92% of those rating the diagnostic test maker tag it to outperform the market, they've been rather silent on the reasons behind their belief in its growth prospects. Head over to the Cepheid CAPS page and test the waters with your opinion on its future.
The ball's in your court
There are many factors that go into whether a stock is a buy or sell, so it pays to start your own research on these stocks on Motley Fool CAPS. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made, all from a stock's CAPS page. Head over to CAPS today and share your thoughts with other investor analysts on whether you think these stocks are ready to bound higher.
