5 Stocks Bouncing Back

However hard the market slams a stock, there's always the chance it'll bounce right back. We'll consult our Motley Fool CAPS community to find shares on the rebound, searching one specific sector of the economy for companies with rising CAPS ratings.    

Among the 840 stocks listed under services in the CAPS' screener, we've unearthed more than a few with five-star ratings. Those accolades mean some of our 160,000 CAPS members are confident that these stocks will beat the market in the months ahead. Let's see what members are saying about the five below:

Source: Motley Fool CAPS; Yahoo! Finance. Shanda Games had its IPO Sept. 24, 2009.

While the broader market averages have staged a pretty bold recovery, services stocks have done even better, with the average company doubling in value from a year ago. Of course, those returns include some strong performances from the likes of coffee maker Diedrich Coffee, which rose more than 2,200% after Green Mountain Coffee Roasters (Nasdaq: GMCR) and Peet's Coffee & Tea became locked in a bidding war for its beans.

So let's take a closer look at why investors think that some of these other companies won't be jumping from the frying pan into the fire.

Some spring in its step
With a weakened airline industry where carriers were forced to cut capacity, charge for previously free services and amenities, and contend with rising fuel prices again, the airplane leasing industry also suffered, with buyer financing often constrained in addition to everything else.

Aircastle's profits fell 7% in the fourth quarter as it was forced to abandon its plan to purchase engines and its revenues slid 14%. AerCap, on the other hand, used the turmoil as an opportunity to purchase rival Genesis Lease, and it showed a 30% increase in leasing activity for the year.

CAPS member 4glory thinks the airline industry as a whole is in a better spot these days, which is good for AerCap.

Great company, airlines are stronger now so future earnings and profits are assured. Massive short interest, got to be feeling some pain.

Who got game?
It hasn't been a public company for a full year, but the way things are going for its stock, Shanda Games might just as well be thankful. Shares are trading more than 40% below their IPO price of $12.50 each. Of course, they fell 14% in their first days of trading and it has been all downhill since for the company, which used to be the more profitable division of Shanda Interactive (Nasdaq: SNDA).

Some investors are still very enthusiastic about the online gaming specialist; CAPS All-Star DSmod thinks the next quarterly earnings report could be a catalyst.

Technicals seem to suggest this has bottomed out after being oversold due to lowered guidance and questions concerning the spin-off decision. Now might be a good time to grab this on the cheap and wait for that hint of good news (next earnings release?) that sends the market into a feeding frenzy.

Starve a cold
While many times a single stock sneezing can be the signal of an entire sector catching a cold, other times it just means that particular company is sick. That would be the case with pharmacy chain Rite Aid (NYSE: RAD), which reported a worse-than-expected loss in the first quarter and said it would lose more money in fiscal 2011 than analysts had anticipated. That's contrary to the stronger results both CVS Caremark and Walgreen (NYSE: WAG) reported, indicating the problems are Rite Aid's alone.

CAPS member corcione finds CVS Caremark to be the best-positioned company among the three.

An aging population buying more drugs each year-good for CVS and other [pharmacy benefits managers]. No matter how the U.S. health-reform battle comes out CVS will benefit from cheaper medicine presently on the way as generic drugs.

The ball's in your court
There are many factors that go into whether a stock is a buy or a 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 on whether you think these stocks are ready to bound higher.