The Stocks Wall Street Loves
Despite all of Wall Street's conflict and contention, a fortunate few companies enjoy unanimous support among professional analysts. If the market's movers and shakers all believe these companies will beat the long-term averages, well, surely they will -- right?
Not so fast! With help from the 180,000 members of Motley Fool CAPS, we'll see whether these highflying favorites deserve analysts' unwavering support.
CAPS Rating(out of 5)
CAPS Bullish Sentiment
No. Wall Street Analysts
52-Week Price Change
|Capstone Turbine (NAS: CPST)||***||94%||7||42%|
|Human Genome Sciences (NAS: HGSI)||**||80%||22||(60%)|
|OmniVision Technologies (NAS: OVTI)||*****||95%||12||(31%)|
Source: Motley Fool CAPS.
As you can see, there's a wide range of results, so just because Wall Street loves 'em, that doesn't mean you have to. Use the list as a jumping-off place for your own research.
Fame was fleeting for Capstone Turbine, which in March garnered a quasi-endorsement by President Obama, who touted the micro-turbine maker's exports to Brazil as a potential green-jobs creator. Shares have been cut in half since then.
Although still unprofitable, Capstone seems to be doing better than Obama's other green-jobs pick, solar-panel maker Solyndra, which went bankrupt in a high-profile crash and burn. First-quarter revenues jumped 51% while units shipped soared 73%, though it swung to a loss from a small profit the year before.
Capstone's technology finds itself competing against other technologies -- such as fuel cells and solar- and wind-powered systems -- that have benefited from high government subsidies. FuelCell Energy (NAS: FCEL) and Ballard Power are just two of those seeking to gain an upper hand.
But most investors haven't been willing to wait around to see who wins, though the CAPS community remains supportive. All-Stars, though, are more cautious, with just three-quarters seeing it outperforming the broad market averages.
Let us know in the comments section below or on the Capstone Turbine CAPS page whether you think investors will power up on the stock. Also add it to your watchlist to be notified of the latest developments.
Not playing NICE
You'd like to think drugs that can help people would get approved regardless of cost. But the U.K.'s regulatory agency rejected Human Genome Sciences' treatment for lupus, Benlysta, because it didn't think it could get enough value for the money.
The National Institute for Health and Clinical Excellence, or NICE, weighs the money the government has to pay out on health care with what it perceives as the benefit patients receive in return. It apparently often rejects new drugs, and it did so here even though there hasn't been a new lupus treatment in 50 years. Alzheimer's patients were similarly affected several years ago, when NICE rejected Eisai Pharmaceuticals' treatment that would have allowed patients and families to enjoy a semblance of normality, albeit temporarily, because they didn't want to pay up.
Human Genome Sciences and marketing partner GlaxoSmithKline (NYS: GSK) won FDA approval for Benlysta earlier this year and has also won approval in continental Europe. It's only the bean counters at NICE who see no benefit.
Although it sports a low two-star rating, 80% of the CAPS members rating Human Genome Sciences think it can still beat the Street. Add the biotech to your Watchlist, and then leap on over to read what others are saying on the Human Genome Sciences CAPS page.
What you see is what you get
Shares of OmniVision Technologies continue to struggle under the weight of the suggestion that it was no longer the apple of Apple's (NAS: AAPL) eye, as reviews of the new iPhone 4S seem to confirm analyst suspicions that it had lost out to Sony (NYS: SNE) for more than half of Apple's business. What the exact percentage loss is remains to be seen, but Sony's image sensor seems a perfect fit for the new version of the smartphone.
OmniVision's stock has been cut in half, but not everyone is buying into the analysis, because while the Sony sensor is an exact match, so is OmniVision's second-generation technology. Its OV8830 chip actually meets other specs in the phone better than Sony's, so the Fool's Evan Niu thinks OmniVision has kept 100% of Apple's 4S business!
That could explain why 96% of the CAPS All-Star members rating the chipmaker think it will indeed to go on and beat the Street, but add OmniVision to the Fool's free portfolio tracker and tell us on the OmniVision Technologies CAPS page if you sense this is a good place for your money.
At the time this article was published Fool contributorRich Dupreyholds no position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of GlaxoSmithKline and Apple and creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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