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 1,017 stocks listed under “basic materials” in the CAPS screener, we've unearthed more than a few with five-star ratings. Those accolades mean our 150,000 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:


CAPS Rating Today

Recent Price

52-Week Price Change

Est. Long-Term Growth Rate






Cameco (NYSE:CCJ)





McMoRan Exploration (NYSE:MMR)





Patriot Coal (NYSE:PCX)





SandRidge Energy (NYSE:SD)





Sources: Motley Fool CAPS; Yahoo! Finance.

As the broader market averages have staged a pretty bold recovery until recently, basic materials have recovered fairly well, too. The average company is up more than 97% from the year-ago period, including a bunch of really big winners like Teck Resources (NYSE:TCK), up more than 1,100%, and Ivanhoe Energy (NASDAQ:IVAN), up more than 500%.

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

Some spring in its step
Clean energy is the watchword these days, and the government is handing out tax dollars left and right to promote it. Solar panel maker Suntech Power (NYSE:STP), for instance, got $3 billion in subsidies to build a new assembly facility, and Southern just conditionally received $8 billion in loans to build a new nuclear power plant.

While coal gets short shrift as a "dirty" form of fuel, you can still look for coal producers like Patriot Coal and Massey Energy to ride high because of steelmakers’ overwhelming need for metallurgical coal. They're stoking the fires for a rebound, and with Patriot anticipating a 20% increase in met coal sales to 6.5 million tons in 2010, the meteoric rise this past year might pale in comparison to what's coming.

CAPS member Newtbuddy views coal as particularly cheap right now, and All-Star member cos267 is looking for potential huge gains ahead, assuming the government doesn't handicap the industry too badly:

This company is growing stronger and could definitely become another 50 dollar stock. However with the government looking for cleaner energy, there may be a shift in poles. Millions of grants are being given to companies they want to succeed even though they are not being heavily invested into. a company like Clean Diesel Technologies is one that is at an all time low and is being looked at by researchers.

It has a certain glow
The government loans to finance the construction of nuclear power plants has to be heartening to Cameco, a uranium miner that would have yet another outlet for its product if additional facilities were to come online. Some analysts have been bearish about the price of uranium, which fell sharply from last year's highs, but investors like CAPS All-Star edwjm agree with others who feel that the situation may soon change for the better:

Cameco Corp (CCJ) is engaged in the exploration, development, mining, refining, conversion, and fabrication of uranium for sale as fuel for generating electricity in nuclear power reactors in Canada and internationally. At the current price of No. 31.14, the p/e is 24.3 and the dividend is 0.7%. Uranium is a commodity for which demand should increase, driving up its price.

Almost 1,500 members have joined together to light up Cameco's five-star rating, and 98% look for it to outperform the market. You can enrich others on the Cameco CAPS page with your opinion on whether it’s about to blow up or melt down.

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.

Suntech Power Holdings is a Motley Fool Rule Breakers recommendation. Southern is a Motley Fool Income Investor selection. The Fool owns shares of and has covered calls on Cameco. Try any of our Foolish newsletter services today, free for 30 days.

Fool contributor Rich Duprey does not have a financial position in any of the stocks mentioned in this article. You can see his holdings. The Motley Fool has a disclosure policy.