5 Diverse Companies Worth Buying Today
Just a few weeks ago it looked like the market could do no wrong. The S&P 500 was on a six-month, 27% tear, and fully 45% of investors were bullish on the future. But sentiment has since done an about-face, and just half that percentage of investors are now bullish on future prospects.
How can we deal with such fickleness? One way is to diversify our holdings. Another is to adhere to a regular schedule of investing. That way we're never trying to time the market, which is a difficult thing to do.
Luckily for you, our Rising Stars have been publicly calling out their favorite stocks for more than a year. These real-time portfolios have been doing well, too: Four of our analysts are currently beating the market.
And to make things sweeter, our analysts have just come out with their latest round of buys, and they cover a diverse swath of companies you should consider investing in. Add these companies to your watchlist to stay up-to-date on all the latest news, and at the end I'll offer you access to a special free report on three stocks to help you retire rich.
Fusion-io (NYS: FIO)
Dave Meier and John Reeves have a newly branded portfolio on the lookout for 10-bagger stocks. These stocks aren't for the faint of heart; most of them are high-risk, high-reward ventures.
Dave and John believe Fusion-io represents a great opportunity to capitalize on an undeniable trend in big data. With the amount of data being sent and streamed through the Internet ballooning, Fusion-io's proprietary technology allows customers to sleep well at night knowing their data won't be hitting any traffic jams in cyberspace.
And some of those customers are big-time names, like Apple, salesforce.com, and Facebook. Though recent earnings weren't great, this pair of Rising Stars solidly believes in Fusion-io's long-term potential.
- Add Fusion-io to My Watchlist.
CARBO Ceramics (NYS: CRR)
Rising Star leader Jason Moser already went in for one serving of this fracking specialist, and now he's back for seconds. The company's ceramic mix has been important in helping natural-gas and oil-sands companies extract energy from the earth.
Natural-gas prices are low right now, earnings disappointed investors, and shares are trading about 10% lower than Jason's first recommendation, but he still thinks the company is a great buy. One reason for the earnings disappointment was a shift to liquid-energy plays.
That's good news, according to Jason: "[CARBO] plays an important role in the energy value chain from natural gas to the liquid-rich oil basins, and I suspect this role will only grow more important as time goes on."
- Add CARBO Ceramics to My Watchlist.
InvenSense (NYS: INVN)
This represents the second pick from our 10-Bagger experts this month. Dave and John have singled out InvenSense, which designs motion sensors for electronic devices. If this sounds a little confusing, it's this type of technology that allows your smartphone or tablet to know how to shift a picture based on how it's being held.
The big reason Dave thinks the company represents a great opportunity is because it helps companies gather data on how products are used. Companies can then use that data to make their offerings even more interactive and relevant to people's everyday lives.
Though InvenSense doesn't have its devices in Apple products, Dave sees tons of opportunity for growth in Android devices.
- Add InvenSense to My Watchlist.
Denbury Resources (NYS: DNR)
The final pick for the month by Dave and John is an energy play. The team sees the potential for multibagger returns because this company is priced attractively, considering what it can do.
Unlike other oil extractors, which need to drill their own wells, Denbury goes into old oil wells and injects them with carbon dioxide to extract leftover oil. The big competitive advantage the company has is Jackson Dome, the largest naturally occurring CO2 deposit east of the Mississippi. In addition, they like the company's recently acquired land in the Bakken Shale.
- Add Denbury Resources to My Watchlist.
Recently, lots of investors have been starting to wonder if Oracle's market share will forever be eroded by competition. That speculation has weighed on the stock's price, and Michael thinks these concerns -- though valid -- are being overplayed.
Based on Michael's previous experiences in the industry, he thinks the company's product is just too sticky for customers to replace. Throw in the company's sizable war chest, and there's an attractive buy right now. Michael sees as much as a 35% upside at today's prices.
- Add Oracle to My Watchlist.
Further food for thought
Clearly, we think our Rising Stars represent the cream of the crop. That's why we let them invest the Fool's money on our behalf. If you'd like to know where they think the best bets for your retirement portfolio are, you should check out our special free report: "3 Stocks That Will Help You Retire Rich."
Inside you'll get the name of three long-term winners our analysts truly believe in. Get your copy of the report today, absolutely free.
At the time this article was published Fool contributor Brian Stoffel owns shares of Apple. You can follow him on Twitter, where he goes by TMFStoffel.The Motley Fool owns shares of Apple, Denbury Resources, InvenSense, CARBO Ceramics, Oracle, and salesforce.com. Motley Fool newsletter services have recommended buying shares of Apple and salesforce.com, creating a bear put spread position in salesforce.com, and creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.