5 Great Buys in a Teetering Market
Have market jitters scared you out of stocks? If you're a little wary, that's understandable, but remember: Beating the market requires fortitude and a long-term investing horizon.
If you'd like some help getting through the rough patches and sticking to your investment plan, we've got just the thing for you: the Rising Stars Program.
Our top analysts-in-training are making real-time investments with the Fool's money, and it's all there for you to see! Since the program began, we've had some big winners -- Eric Bleeker, Jason Moser, Alyce Lomax, and Joe Tenebruso are all beating the market!
To find out five of the group's most recent buys, read on. Add these companies to your watchlist and you'll be able to stay on top of all the latest news. Read to the end and I'll be offering up access to a special free report on three stocks that will help you retire rich.
Riverbed Technologies (NAS: RVBD)
Though shares of this networking company are down 13% since late January -- while the overall market has been up -- Fool analyst Eric Bleeker thinks the company is ripe for the picking. Eric is especially enthusiastic about the company's wide-area network optimization. This refers to the ability to efficiently transfer data across large networks.
Eric's done his research on this: "My discussions with IT managers only seem to confirm that not only will WAN optimization be a big deal, but also Riverbed's place as the top dog is secure." Eric is also very excited about the company's "Granite" product line and its ability to enter new markets.
- Add Riverbed Technology to My Watchlist.
The overall thesis for the company is simple: "By 2015, there will be 15 billion devices connected to the Internet, which comes to one zeta-byte of data consumption," Dave explains. He believes that in order to be able to handle all that data, networks are going to turn to Infinera.
Adding sweetness to the deal, the company is about to release a new product, as Dave points out -- the DTNX -- and yet the stock hasn't moved at all. He thinks that's a huge oversight and gives us a great entry point.
- Add Infinera to My Watchlist.
Ancestry.com (NAS: ACOM)
Second on Fool Eric Bleeker's list of buys this month is everyone's favorite genealogy website. Eric is the first to point out that making money off people searching for information about their ancestors doesn't seem like a great investment opportunity.
But Eric thinks that with 1.7 million subscribers in Ancestry's base, this story is just getting started: "The important point to me is that as of right now, Ancestry has barely scratched the surface on up-selling its loyal customer base to better and more comprehensive services."
- Add Ancestry.com to My Watchlist.
IBM (NYS: IBM)
As if he hadn't spend enough of the Fool's money this month, Eric couldn't help but take a bite out of Big Blue also. Though the company might not be the sexy highflier that his other two picks are, he sees a chance to own a greater slice -- he bought shares last year as well -- of a long-term winner.
"I'm not expecting IBM to thump the market again by more than 40% with this pick," Eric says," but I do think I'm able to buy one of the best-run tech companies with a disciplined vision for well-managed growth."
- Add International Business Machines to My Watchlist.
Ceradyne (NAS: CRDN)
Finally, Fool analyst Jim Mueller picked Ceradyne for his portfolio recently. The company is often thought to have a sole revenue stream that relies on body armor for soldiers. But as Jim explains, that misconception provides an opportunity for investors.
The company is really focused, Jim explains, on advanced technical ceramics. Since the height of the wars in Afghanistan and Iraq, the company has been diversifying its products stream -- from creams for removing sand from oil coming out of the earth to engine parts in the growing natural gas trucking industry.
- Add Ceradyne 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 does not own shares in any of the companies mentioned. You can follow him on Twitter, where he goes by TMFStoffel.The Motley Fool owns shares of Infinera. Motley Fool newsletter services have recommended buying shares of Riverbed Technology, Infinera, and Ancestry.com, as well as writing covered calls on Riverbed Technology. 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.
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