Wall Street hates the companies mentioned in today's column. So why do our Motley Fool CAPS members disagree? They've bestowed on these companies the highest four- and five-star ratings, signaling their faith that the associated businesses will outperform the market.
So who has it right? The professional class of analysts sitting in their paneled offices smoking stogies, or a motley crew of community investors pooling their best thoughts for others to share? We think we know who'll come out ahead. How about you?
CAPS Rating (out of 5)
No. of Analysts
Wall Street Bearish Sentiment
CAPS Bullish Sentiment
Source: Motley Fool CAPS.
Now, as much as we love our CAPS community, don't buy these companies just because they've garnered top ratings. And don't sell 'em just because Wall Street says to either. Investing requires closer diligence on your part, so use these ratings as a launching pad for your own research.
A short circuit
Contract electronics manufacturer Jabil Circuit beat analyst forecasts last month, as a combination of market-share gains, new customer wins, and new production from existing customers helped drive 23% growth in revenues, as well as earnings that more than doubled last year's effort.
That might bode well for Plexus, since it indicates an environment that remains somewhat resilient despite the dicey economic outlook. Plexus provides services to original-equipment manufacturers in the networking, wireless infrastructure, and medical sectors, among others.
Even though the wireless sector is hot, Plexus saw its largest customer, Juniper Networks
Although analysts remain evenly divided on its prospects going forward, CAPS All-Stars overwhelmingly see Plexus succeeding, with almost 94% of those rating the contract electronics manufacturer seeing it moving ahead of the broad market averages.
The pall the tanker glut is casting over the shipping market is likely to have far-reaching effects years down the road. Depending on which shipping companies survive this downturn, it will affect how Frontline, DryShips
Unlike the Baltic Dry Index, which rebounded from its lows earlier this year, the Bloomberg Tanker Index seems to reach new depths with each passing day. Frontline is second only to Teekay, which ships 10% of all the world's oil supply, in weighting on Bloomberg's tanker index.
CAPS member Teacherman1 says that despite its troubles, Frontline remains a solid shipping investment: "They are struggling like all of the tankers, but I have a lot more faith in their management than I do in most of the others. I believe it will prove to be a good longer term hold at this price level."
House of pain
Drug developer Pain Therapeutics has been in a world of pain since June, when the FDA sent a complete response letter notifying it and Pfizer
Pfizer previously warned investors that manufacturing issues might hamper its ability to get approval, and Pain Therapeutics says it may take a year or more to work through the concerns.
With 92% of CAPS members still rating Pain Therapeutics to outperform the market indexes, it's apparent they're willing to wait. You can tell us on the Pain Therapeutics CAPS page or in the comments section below if you think it can work through the concerns, and then follow its progress by adding it to the Fool's portfolio tracker.
What's wrong with that?
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.
Sign up today for the completely free service, and tell us which side of the street will be the ultimate winner.
Fool contributor Rich Duprey holds no position in any company mentioned. Check out his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Pfizer. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.