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 a specific sector of the economy in search of companies with rising CAPS ratings.
There are 63 stocks listed under "Internet" in the CAPS screener, but more than a handful of them carry well-respected four- and five-star ratings. Those accolades mean our 170,000 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 ones below:
CAPS Rating Today (out of 5)
52-Wk Price Change
Est. 5-Yr. Growth Rate
Sources: Motley Fool CAPS, Yahoo! Finance.
The markets may be feeling better about the economy after a few reports have offset much of the drumbeat of negativism we've seen, but with the S&P 500 up more than 22% over last year, CAPS Internet stocks have done even better. The average stock is up 48% from the year-ago period.
Helping the sector's performance was email encryption service Zix, which more than doubled in value in the past year, and Indian Internet portal Rediff.com, which soared 175% over the same period. 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 now that the markets are roiled again.
Some spring in its step
Sure, investors were depressed by its own guidance, but the growth story remains intact. Even with it sharing the Netflix
While competition may be increasing, so is the need for network connectivity as more company's reach for "the Cloud". Alkamai Technologies has made a half dozen 10% short term swings the last year. While high growth investors may see the opportunity diminishing for Akamain, high value investors should fill the gap.
Click on this
Although not exactly much ado about nothing, last month's shirt rending and teeth gnashing after ClickSoftware Technologies said it would miss earnings expectations seems a bit overwrought Revenues, they said, were going to come in soft at $18 million while Wall Street was looking for $20 million, in line with what management had previously promised. The stock naturally went off the edge, falling nearly 20%.
When they finally did report results the other day, revenues did come in around $18 million, but they were still up 8% year over year. While a part of its lower performance was because of a customer's bankruptcy filing, a better part was the result of hiring more people because it's signing more contracts. It's still growing its business, and the revenues from these new customers will flow through during the year. Analysts are expecting rival Oracle
Adding back in after post-earnings haircut. Don't end this pick for at least 2-3 years! (Remember ININ!)
It's all in the mix
When you buy shares of CDC, you're actually buying a series of companies, including IT services, online games, and the Internet portal China.com. Enterprise software division CDC Software says the government is aching to support the software and semiconductor industries, but it is best positioned to capitalize on the financing, R&D spending, and tax policies that will be implemented.
Thus far, however, CDC, weighed down by lawsuits and such, continues to see its stock drift lower and lower. With 95% of the CAPS members rating the software specialist to outperform the market, it seems they're anticipating it will eventually rebound from these lower valuations.
Add CDC to the Fool's free portfolio tracker to keep up to date on just how much the government is willing to prop up its segment of the market, the head over to the CDC CAPS page and add your voice to the mix on its future.
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.
Akamai Technologies is a Motley Fool Rule Breakers pick. Netflix is a Motley Fool Stock Advisor recommendation. The Fool owns shares of Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.