5 Stocks Bouncing Back

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 more than 750 stocks listed under technology in the CAPS' screener, we've unearthed more than a few with high five-star ratings. Those accolades express our 140,000 CAPS members' confidence 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.

While some companies in the technology sector have obviously fared better than others, the average technology stock is also chipping in, with returns of almost 45% from the year-ago period. Let's take a closer look at why investors think that some of these companies won't be jumping from the frying pan into the fire.

Some spring in its step
When it comes to solar companies these days, everyone wants to be "vertically integrated." ReneSola (NYSE:SOL) is trying to radically transform itself by staking out claims in wafer, cell, and module manufacturing, and MEMC Electronic Materials seems to be following suit with its acquisition of solar project developer SunEdison. But that move raises the wafer maker's risk profile.

As ReneSola and LDK Solar (NYSE:LDK) diversify into project development, MEMC is entering what is fast becoming a crowded field. The intensifying competition will put pressure on the solar firm in an arena for which it has little expertise. SunEdison might have experience in developing solar farms, but that doesn't easily translate to MEMC, and it adds to the concerns already in play about industry margin compression from collapsing polysilicon prices.

That doesn't deter some investors, though. Highly rated CAPS All-Star member TSIF thinks MEMC's diversification plans are an opportunity to expand its presence:

SunEdison has done well as an installer and getting components from MEMC at their cost as a division of MEMC should help them. It will also give them broader reach and possibly expand their customer base. Since MEMC has a good supply of cash, I consider the SunEdison deal to be positive. This pick may take a while to mature, but I like the 10% discount I received from the market today.

Double down
Investors in GigaMedia have been getting discounts on the freefalling stock of the Chinese online gaming shop. Shares have plunged 36% over the past six months. GigaMedia missed earnings estimates by a penny in June, as revenue fell 13%. The company said it expected to see continued softness throughout the summer, owing to seasonality and the general economic downturn.

The global economy has been weighing on GigaMedia as well, but for CAPS members like MikeBobulinski, the poker specialist has been playing all the angles correctly:

With GIGM working just about every online gaming angle available, it is bound to climb once the economy actually fixes itself or gets fixed. Right now, GIGM suffers the same problem that just about every entertainment service or company suffers from...consumers will spend their hard earned money on survival needs (food, water, fuel, shelter, etc) before they spend it on the good-to-haves (dinners out, movies, video games, toys, etc.) Given that, when the consumers start getting more discretionary money, GIGM will start making more money. Think long on this one...

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.