However hard the market slams a stock, there's always the chance it'll come bouncing right back. Let’s 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 more than 750 stocks listed under “technology” in the CAPS screener, we've unearthed a few with five-star ratings, the highest possible. Those accolades mean our 140,000 CAPS members are confident that these stocks will beat the market in the months ahead, but let's see what members are saying about the five below:
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Company
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CAPS Rating Today
|
Recent Price
|
52-Week Price Change
|
Est. LT Growth Rate
|
|
Activision Blizzard (Nasdaq: ATVI )
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*****
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$11.61
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(29%)
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17%
|
|
Infosys (Nasdaq: INFY )
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*****
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$43.23
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9%
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18%
|
|
Taiwan Semiconductor Manufacturing (NYSE: TSM )
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*****
|
$10.70
|
9%
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13%
|
|
Vimpel-Communications (NYSE: VIP )
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*****
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$15.44
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(37%)
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10%
|
|
Zix (Nasdaq: ZIXI )
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*****
|
$1.82
|
(32%)
|
23%
|
Sources: Motley Fool CAPS, Yahoo! Finance. Price change as of Aug. 28.
Even though the average company in the technology screen lost about 13% of its value over the past year, there were still some notable performers. STEC (Nasdaq: STEC ) , for example, was a monster stock for CAPS members as its stock rose nearly 300% over the past 52 weeks. So let's take a closer look at why investors think some of these less high-soaring companies won't still be jumping from the frying pan into the fire.
Some spring in its step
The health-care debate in Washington has investors considering ways to profit from Obamacare despite some of the scarier propositions being bandied about. E-prescription software specialist Zix ought to be one of them.
Many CAPS members point to Zix's technology, which they say will help health-care providers comply with regulations mandating that patient history data be rendered unintelligible while being transmitted. But Zix also announced a review of "strategic alternatives" for its e-prescription business in June, a phrase that often means selling off the division. Although that might be a good way to unlock shareholder value for a segment that's seen steadily declining revenue, investors might want to think a bit more about the company’s email encryption services.
Zix is piggybacking on the success of Google (Nasdaq: GOOG ) . The search behemoth has seen its Gmail service rocket into the third most popular email provider ahead of AOL, with prospects brightening for usurping the lead of Yahoo! Mail and Hotmail, currently in first and second place respectively. That's key for Zix, which provides encryption services to Postini, Google's email security subsidiary. Positini provides protection from spam and viruses, as well as compliance and archiving services.
Commenting on a pitch by another CAPS member, ash008 notes that email encryption holds superior opportunities for Zix:
Zix is the sole provider of back end encryption for Postini and therefore for Google. This has been in place for about 2 years. The revenue stream is just now cranking up. ... In some very real ways this company is a product development company, to date, but now have hired Allen and Company to transition into marketing whether by acquisition, merger or partnership. The founder of the company, David Cook, has rejoined the company as a director but few think that is his main purpose.
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.
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