Top 5 Consumer Service Stocks For 2016


Shares of Rackspace Hosting (NYSE: RAX  ) fell more than 24% Thursday, leaving essentially no investors who believe this is one of the best stocks to invest in now.

Yet the skeptics may be overreaching. Sure, Rackspace’s revenue growth is slowing, but with gross margin rising, concerns over collateral damage caused by an ongoing cloud storage price war between Amazon.com (NASDAQ: AMZN  ) and Google (NASDAQ: GOOG  ) are probably unjustified. In the video below, Fool contributor Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses these concerns.


Rackspace is down 47% year to date despite notable progress in implementing its OpenStack infrastructure, which should help to produce higher margins and profits over time. It’ll take awhile for the transition to take full effect, but when it does, look out above, Tim says.

Do you agree? Watch the video to get Tim’s full take, and then let us know whether you think Rackspace Hosting is one of the best stocks to invest in now.

Top 5 Consumer Service Stocks For 2016: iShares MSCI Mexico Investable Market Index Fund (EWW)

iShares MSCI Mexico Index Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the aggregate in the Mexican market, as measured by the MSCI Mexico Index (the Index). The Index seeks to measure the performance of the Mexican equity market. The Index is a capitalization-weighted index that aims to capture 85% of the (publicly available) total market capitalization. Component companies are adjusted for available float and must meet objective criteria for inclusion in the Index. The Index is reviewed quarterly.


The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund’s investment advisor is Barclays Global Fund Advisors.

Advisors’ Opinion:

  • [By Jim Powell]

    Some developing countries are poor bets right now, but others are very attractive. Shorter-term, The Mexico Fund (EWW) is my number one choice as the most promising country ETF for this year.

  • [By Jim Powell]

    Jim Powell: I like the exchange-traded funds. I really think the iShares Mexico Fund (EWW)—EWW is a way for most Americans to go. If you have specialized knowledge of Mexico, and you know companies that you wish to invest in, you certainly can. There are plenty of them, but I recommend a fund.

  • [By Daniel Cross]

    A broad-based investment into the Mexican economy either through the iShares MSCI Mexico Investable Market Index (NYSE: EWW) or the Mexico Fund (NYSE: MXF) — a favorite of StreetAuthority analyst Amy Calistri — are good ways to establish a position. These funds not only have exposure to the manufacturing sector, but also to energy, health care and media — sectors that are benefiting from political reforms and a growing Mexican middle class. The Mexico Fund has a powerful incentive for investors as well in the form of a hefty 10% dividend.

Top 5 Consumer Service Stocks For 2016: General Finance Corporation (GFN)


General Finance Corporation, through its subsidiaries, engages in the lease and sale of portable storage containers, portable container buildings, and freight containers. It offers mobile storage containers, including general purpose units, double pallet-wide high cube units, hazardous goods containers, and refrigerated containers; portable building containers, such as site offices and cabins, workforce accommodation units, luxury accommodation units, restroom blocks, blast-resistant units, and specialized office and infrastructure suites; and freight containers consisting of curtain-side containers, hi-cube containers, pallet-wide containers, side-opening door containers, and bulk containers. The company provides its products for various storage applications, including retail and manufacturing inventory, construction materials and equipment, documents and records, and household goods. It also leases and sells storage trailers and other storage structures, container office s, mobile offices, and modular buildings, as well as ancillary products comprising steps, furniture, portable toilets, security systems, and other items for use in connection with its equipment. In addition, the company offers delivery and installation, return and dismantle, and other site services. As of June 30, 2012, it operated a fleet of 23,855 mobile storage containers, 3,294 portable container buildings, and 9,348 freight containers. The company serves various industries, such as mining, road and rail, construction, moving and storage, manufacturing, transportation, defense, retail, utilities, education, and services sectors, as well as small and medium-size entities in New Zealand, North America, and the Asia-Pacific regions of Australia. General Finance Corporation was incorporated in 2005 and is headquartered in Pasadena, California.


Advisors’ Opinion:

  • [By Lisa Levin]

    General Finance (NASDAQ: GFN) shares touched a new 52-week high of $8.12 after DA Davidson lifted the price target on the stock from $8 to $11.

    Mattress Firm Holding (NASDAQ: MFRM) shares reached a new 52-week high of $47.03 after the company reported upbeat Q4 earnings and raised its FY14 forecast.

Top 5 Consumer Service Stocks For 2016: Sensata Technologies Holding N.V.(ST)

Sensata Technologies Holding N.V., through its subsidiaries, develops, manufactures, and sells sensors and controls primarily in the Americas, the Asia Pacific, and Europe. It operates in two segments, Sensors and Controls. The Sensors segment offers pressure sensors, force sensors, temperature sensors, speed sensors, position sensors, motor protectors, and thermal and magnetic-hydraulic circuit breakers and switches. Its sensors are used in various applications, such as automotive air-conditioning, braking, transmission, air bag, heavy vehicle off-road, industrial, aerospace, defense, and data/telecom applications, as well as heating, ventilation, and air-conditioning (HVAC) applications. The Controls segment provides bimetal electromechanical controls, thermal and magnetic-hydraulic circuit breakers, power inverters, and interconnection products. This segment also offers application-specific products, including motor and compressor protectors, circuit breakers, semicondu ctor burn-in test sockets, electrical HVAC controls, power inverters, precision switches, and thermostats. Its products are used in heating and air-conditioning systems, refrigerators, aircraft, automobiles, and light industrial system applications in industrial, aerospace, military, commercial, and residential markets. The company offers its products primarily under the Sensata, Klixon, Airpax, and Dimensions brand names. It serves original equipment manufacturers and suppliers in the automotive, industrial, and commercial end-markets; and industrial and commercial manufacturers and suppliers in the climate control, appliance, semiconductor, datacomm, telecommunications, and aerospace industries, as well as motor and compressor suppliers. The company was founded in 1916 and is based in Almelo, the Netherlands. Sensata Technologies Holding N.V. is a subsidiary of Sensata Investment Company S.C.A.


Advisors’ Opinion:

  • [By Holly LaFon]

    • Sensata Technologies (ST) develops, manufactures and sells sensors and controls. We are attracted to the company’s large growth opportunity, which is driven by increased sensor penetration in industries such as automobiles and general industrial opportunities. We find Sensata’s business model to be attractive given the stability of its revenues, strong operating leverage and excellent management team. During the period, the company benefited from a rebound in European automobile sales and deployed capital in several small accretive acquisitions. We have been trimming the position modestly as the stock approaches our price target.

  • [By cody56]

    The top contributors to performance during the period were Trimble Navigation (TRMB), Sensata Technologies (ST) and Cadence Design Systems (CDS).

    Trimble Navigation provides location-based solutions to its customers that enhance their productivity and profitability. The recovery in construction end markets and continued strong demand from the farm economy resulted in strong overall financial results for the company and a strong stock price. We trimmed the position as it began to exceed the upper end of the market cap range that we invest in. Sensata Technologies develops, manufactures and sells sensors and controls. We are attracted to the company’s large growth opportunity, which is driven by increased sensor penetration in industries such as automobiles and general industrial opportunities. We find Sensata’s business model to be attractive given the stability of its revenues, strong operating leverage and excellent management team. During the period, the company benefited from a rebound in European automobile sales and deployed capital in several small accretive acquisitions. We have been trimming the position modestly as the stock approaches our price target.


    Meridian Growth Fund performance

  • [By Seth Jayson]

    Calling all cash flows
    When you are trying to buy the market’s best stocks, it’s worth checking up on your companies’ free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That’s what we do with this series. Today, we’re checking in on Sensata Technologies Holding (NYSE: ST  ) , whose recent revenue and earnings are plotted below.

  • [By Toshiro Hasegawa]

    Commonwealth Bank of Australia (CBA) fell 1.1 percent to A$73.73. Singapore Telecommunications Ltd. (ST) retreated 1.1 percent to S$3.78 today after posting earnings.

Top 5 Consumer Service Stocks For 2016: Giga-tronics Inc (GIGA)


Giga-tronics Incorporated (Giga-tronics), incorporated on March 5, 1980, includes the operations of the Giga-tronics Division and Microsource Inc. (Microsource), a wholly owned subsidiary. Giga-tronics Division designs, manufactures and markets a line of test and measurement equipment used in the development, test and maintenance of wireless communications products and systems, flight navigational equipment, electronic defense systems and automatic testing systems. These products are used primarily in the design, production, repair and maintenance of commercial telecommunications, radar, and electronic warfare equipment. The Company manufactures products used in test, measurement and control. The Company has two segments: Giga-tronics Division and Microsource. In April 2013, it completed the sale of its product line known as SCPM to Teradyne, Inc.


Giga-tronics

The Giga-tronics Division produces signal sources, generators and sweepers, and power me asurement instruments for use in the microwave and radio frequency (RF) range (10 kilohertz (kHz) to 50 gigahertz (GHz)). Within each product line are a number of different models and options allowing customers to select frequency range and specialized capabilities, features and functions. The end-user markets for these products can be divided into three segments: commercial telecommunications, radar and electronic warfare. These instruments are used in the design, production, repair and maintenance and calibration of other manufacturers’ products, from discrete components to complex systems.


The Giga-tronics Division also produces switch modules and interface adapters that operates with a bandwidth from direct current (DC) to optical frequencies. These switch modules may be incorporated within its customers’ automated test equipment. The end-user markets for these products are primarily related to defense, aeronautics, communications, satellite and electronic w arfare, commercial aviation and semiconductors.

Microsource

The Microsource segment develops and manufactures a broad line of yttrium, iron, garnet (YIG) tuned oscillators, filters and microwave synthesizers, which are used by its customers in operational applications and in manufacturing a variety of microwave instruments or devices.


Giga-tronics competes with Agilent, Anritsu, EADS, Aeroflex and Rohde & Schwarz.

Advisors’ Opinion:

  • [By Monica Gerson]

    Giga-tronics (NASDAQ: GIGA) dropped 14.84% to $1.32. Giga-tronics’ trailing-twelve-month profit margin is -30.58%.

    MER Telemanagement Solutions (NASDAQ: MTSL) dropped 14.62% to $2.09 after the company terminated MVNE solution provider agreement with SBC Communications.

Top 5 Consumer Service Stocks For 2016: Kirrin Resources Inc (KIRRF.PK)

Kirrin Resources Inc. (Kirrin) is a development-stage company. The Company’s principal business is the acquisition, exploration and development of uranium and rare earth elements resources properties. Kirrin operates two REE properties, Grevet in Quebec and Bottom Brook in Newfoundland and one uranium project, Alexis River, in southeastern Labrador. It holds its property interests through its wholly owned Alberta subsidiary, Kirrin Exploration Inc. (KEI). It has an option agreement with Altius Resources Inc. to earn a minimum 60%, maximum 100% interest in the Alexis River uranium property, located in southeastern Labrador. It has an option agreement with Ucore Rare Metals Inc. to earn a minimum 50%, maximum 65% interest in the Lost Pond/Bottom Brookrare earth elements and uranium property, located in western Newfoundland. It has an option agreement with Michel Proulx to earn a 100% interest over four years in the Grevet rare earth elements property located in northwestern Que bec. Advisors’ Opinion:

  • [By The Gold Report]

    Tickers related to the original interview with Don Mosher include: Teck Resources (TCK) and Kirrin Resources (KIRRF.PK).

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