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, by examining one specific sector of the economy in search of companies with rising CAPS ratings.

Among the 288 stocks in CAPS' "Industrial Goods" sector, we've unearthed a handful with top four- and five-star ratings. Those accolades mean that our 135,000 CAPS investors are confident that these stocks will beat the market in the months ahead:


CAPS Rating (Out of 5)

Recent Price

52-Week Price Change

Estimated Long-Term Growth Rate

Caterpillar (NYSE:CAT)





Foster Wheeler (NASDAQ:FWLT)










United States Steel (NYSE:X)










Sources: Motley Fool CAPS; Yahoo! Finance.

When cell-phone towers started to spring up in neighborhoods across the country, the paranoid among us feared that our brains would be fried by the electromagnetic frequencies, or EMFs, that they emit. Sure, they were eyesores, but were they also a danger to the public health? It seems unlikely to me -- or at least no more likely than the idea that EMFs can indicate the presence of ghosts, as the surprisingly popular Ghost Hunters television show likes to tell us.

Similarly, some folks believe that wind farms could pose a health hazard. According to one researcher, the spinning of the gigantic turbines emits inaudible sound waves, and their rhythmic movement causes vibrations resulting in "wind turbine syndrome," with health effects including the onset of heart palpitations, high blood pressure, dizziness, and a continuous ringing in the ears. I can just hear the trial lawyers sharpening their pencils.

Some spring in its step
As if the wind-farm business needed any more problems, carbon-fiber producer Zoltek, whose products are primarily used by wind-turbine manufacturers, reported first-quarter earnings back in March that didn't exactly set hearts aflutter. Revenues fell by 27%, and the company barely made a profit as wind-farm activity slowed, with developers waiting to see what kind of support the government would lend to the farms' efforts. To that end, Zoltek sees the business resuming its growth trajectory next year.

Zoltek's largest customer is Vestas Wind Systems, which represented 40% of its revenues last year. Vestas is investing $350 million in its Chinese production facilities this year to meet growing demand there. The Chinese government itself is pushing for large investments in alternative energy, and the WorldWatch Institute says the country could surpass the United States, Europe, and Japan to become the largest consumer of renewable energy in the near future.

China wants to double its capacity of wind power and is planning on spending some $14.6 billion to do so. China Longyuan Electric Power Group, which makes up about 25% of the nation's wind-power capacity, wants to boost power production capacity to 6,000 megawatts by 2010 and to 20,000 megawatts in the next decade. A-Power Energy Generation Systems (NASDAQ:APWR) said that despite falling revenues and profits for the first quarter, it was raising its guidance for the full year.

Analysts estimate the total wind-energy market in the United States to be more than $151 billion. President Obama has said he wants to spend $15 billion a year over the next decade to promote alternative-energy sources like wind.

Trends seem to favor Zoltek over rivals such as Hexcel (NYSE:HXL), since Zoltek is less dependent on the aerospace industry. Zoltek's technical-fiber division, which produces carbon-fiber products for the aerospace industry, contributes just 14% of total revenues and 15% of operating profits. Hexcel, on the other hand, derives more than three-quarters of its revenues from commercial aerospace, space, and defense.

That's why highly rated CAPS All-Star rofgile prefers an investment in Zoltek, because it is more of a pure play than some of its rivals are: "Wind power, low price right entry. Not tied to making carbon fibers for airlines like HXL is, so more of a wind power play."

The ball's in your court
Many factors 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.

Fool contributor Rich Duprey has no financial position in any of the stocks mentioned in this article. You can see his holdings. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.