Drink In These 5 Top Stocks

Whether in the corporate lunchroom, our cubicles, or the local watering hole after work, there are regular places we gather to discuss news, sports, or -- if you're like us -- stocks. Here at Motley Fool CAPS, we gather around the virtual water cooler daily to rate stocks and delve into their merits as investments.

Our 125,000-strong CAPS community -- where members give the thumbs-up or thumbs-down to some 5,400 stocks -- seeks out businesses it thinks will outperform the market. Below, we'll take a look at some of the highest-rated, most talked-about stocks in the CAPS universe, and see whether you think they'll continue their winning ways.

A tall drink of water
Valued at $60 billion, the computer-server market is a tempting enough target for Cisco (NASDAQ:CSCO). Now the networking expert wants its own slice of a segment currently dominated by Hewlett-Packard and IBM (NYSE:IBM).

Hewlett-Packard's turf is also under attack in the printer market. Despite Lexmark's fumble in the latest quarter, it seems likely we'll see price increases in ink and toner, perhaps by as much as 3% to 6%. CAPS member Spencecary thinks HP will lose to its rivals because of its lackluster R&D department:

Losing market share to competitors will cause revenue to suffer. Slowing printer and ink sales will result in same effect. Unless HP comes out with new products to compete with the market they will be left in the past with technology that will be replaced by companies with greater R&D divisions.

Feeling gaseous
As if having some of the largest oil reserves in the Tupi oil field (with its estimated 60 billion barrels) weren't enough, Brazilian oil and gas operator Petrobras just reported that it hit on a natural gas field in Bolivia that may rival two of its other gas fields as that country's largest. Apparently, when it rains, it pours.

Even before that latest announcement, CAPS member jmpreiks thought Petrobras represented a good long-term play, since the stock has taken a beating in the wake of tumbling oil and gas prices: "Great company, beat down pretty severely by lower oil prices and lower interest in foreign stocks. This should make a good turnaround with a longer time frame in mind."

Try this on for size
It's no surprise that sports clothier Under Armour saw profits fall more than 50% this quarter, pinched by increased order cancellations and returns. But the company did benefit from a 20% increase in its top-line numbers, leading loyal investors to hope that when the overall retail market turns around, Under Armour will have room to run. Perhaps that's partly why the company will launch a line of shoes this weekend. Yet is this more of a direct assault on Nike, or on the senses? I mean, do we really need another sneaker company?

CAPS member IdahoAve suggests that Under Armour can make a successful go of the sneaker biz, since it possesses a well-recognized and respected name in sporting goods:

While nothing currently looks good in a retail enviornment, [Under Armour] has caught my attention for the one simple reason that a lot of young people are wearing it. I am currently involved with a community college soccer team and I was amazed at how often I saw this brands logo. I should also note that I never saw it anywhere 4-5 years ago, making this a remarkable change.

Gather 'round
Diving into the CAPS community is like trying to take a sip from a fire hose. With so many good opinions about today's top companies, why not grab a pointy paper cup from the dispenser and join us at the Motley Fool CAPS water cooler? Your input can help guide other investors to stocks with bright prospects for growth. You can also 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.

Sign up today for the completely free service, and let us hear what you have to say about the great and almost-great companies that interest you.