Hot Growth Companies To Buy For 2014

With shares of Pepsi (NYSE:PEP) trading around $82, is PEP an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Pepsi operates as a food and beverage company worldwide. The company is organized into four business units: PepsiCo Americas Foods, PepsiCo Americas Beverages, PepsiCo Europe, and PepsiCo Asia, Middle East and Africa. It manufactures, markets, and sells a range of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, dairy products, and other foods. Convenience foods are seeing significant demand worldwide as consumers in growing economies are opting for these products. Pepsi stands to see a continued rise in profits for many years as a leading provider of quick, convenient, inexpensive, and enjoyable products worldwide.

On Wednesday, Pepsi reported core�earnings per share of $1.24 for the third quarter. “We��e pleased with our performance. PepsiCo has delivered double-digit core constant�currency earnings per share growth year to date, despite ongoing macro-economic�volatility in many markets. We��e able to perform well in these conditions because our�brands are strong, our product portfolio is on-trend, and our geographic footprint is broad�and diverse. Importantly, we have continued to make marketplace investments to�strengthen our foundation for sustainable growth,” said Chairman and CEO Indra Nooyi.

Top 10 Oil Service Stocks To Invest In Right Now: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Ben Levisohn]

  JC Penney’s gain is all the more surprising consider what’s happened to other retailers today. Macy’s (M) has dropped 0.8% to $43.83, Kohl’s (KSS) has dipped 0.4% to $50.16 , Dillard’s (DDS) has fallen 2% to $76.19 and Nordstrom (JWN) has declined o.6% to $56.98.

• [By Doug Ehrman]

  As brick-and-mortar retailers continue to look for ways to level the playing field in terms of customers' data�relative to their online brethren like Amazon.com, they're experimenting with an increasing number of technologies. A recent New York Times article detailed how Nordstrom (NYSE: JWN  ) recently ended such a test with Euclid Analytics that used customers' smartphones to track their movements within stores; in-store signs detailing the practice drew negative customer feedback, leading to the end of the experiment.

• [By Ben Eisen]

  Given that outlook, he sees ten stocks in the consumer discretionary sector that qualify as bargains at the moment, including some of the very stocks that are expecting downbeat holiday results. They include: Advance Auto Parts Inc. (AAP) , AutoNation, Inc. (AN) , Bed Bath & Beyond Inc. (BBBY) , Carmax, Inc. (KMX) �, Nordstrom Inc. (JWN) �, PetsMart, Inc. (PETM) �, Ross Stores, Inc. (ROST) , Staples, Inc. (SPLS) �, Target Corp. (TGT) �, and Urban Outfitters, Inc. (URBN) .

• [By Robert Martin]

  Deutsche Bank�(DB) analysts, for example, expect the department store space overall to struggle this holiday season in the face of declining mall traffic and overall spending that is lackluster. That means they expect stronger stores like�Macy’s�(M)�and�Nordstrom�(JWN) to post even lower earnings, and flailing JCPenney to post an even wider loss.

Hot Growth Companies To Buy For 2014: Crocs Inc.(CROX)

Crocs, Inc. and its subsidiaries engage in the design, development, manufacture, marketing, and distribution of footwear, apparel, and accessories for men, women, and children. The company primarily offers casual and athletic shoes, and shoe charms. It also designs and sells a range of footwear and accessories that utilize its proprietary closed cell-resin, called Croslite. The company?s footwear products include boots, sandals, sneakers, mules, and flats. In addition, it provides footwear products for the hospital, restaurant, hotel, and hospitality markets, as well as general foot care and diabetic-needs markets. Further, the company offers leather and ethylene vinyl acetate based footwear, sandals, and printed apparels principally for the beach, adventure, and action sports markets; and accessories comprising snap-on charms. The company sells its products through the United States and international retailers and distributors, as well as directly to end-user consumers th rough its company-operated retail stores, outlets, kiosks, and Web stores primarily under the Crocs Work, Crocs Rx, Jibbitz, Ocean Minded, and YOU by Crocs brand names. As of December 31, 2010, it operated 164 retail kiosks located in malls and other high foot traffic areas; 138 retail stores; 76 outlet stores; and 46 Web stores. Crocs, Inc. operates in the Americas, Europe, and Asia. The company was formerly known as Western Brands, LLC and changed its name to Crocs, Inc. in January 2005. Crocs, Inc. was founded in 1999 and is headquartered in Niwot, Colorado.

Advisors' Opinion:

• [By Ben Levisohn]

  Crocs (CROX) announced a number of moves–including an investment by Blackstone Group (BX) that could restore the bounce to its shares.

  AFP

  Bloomberg has the details on Crocs:

  Crocs Inc. rose as much as 14 percent in early trading after saying Chief Executive Officer John McCarvel will retire and�Blackstone Group LP will invest $200 million in the maker of colorful plastic clogs…

  The shoemaker said in a statement yesterday that it will use the funds from Blackstone�� investment in convertible preferred stock to increase share repurchases to $350 million. McCarvel will step down on or about April 30…

  Blackstone, based in New York, will be restricted from acquiring more than 25 percent of Crocs common shares until a time frame expires for appointing board directors, the shoe manufacturer said in a filing. Crocs said it will pay $2 million as a closing fee and reimburse as much as $4 million of Blackstone�� transaction fees and expenses once the preferred-stock sale is concluded.

  Sterne Agee’s Sam Poser and Ben Shamsian upgrade Croc’s shares to Neutral from Underperform. They explain why:

  The retirement of John McCarvel from his CEO post and from the board of Directors removes a large road block to success. Blackstone�� involvement (13% ownership upon conversion) may serve as a catalyst for positive change, including closing underperforming stores and limiting future store openings. While increased share repurchases should help EPS growth, fixing the fundamentals of the business will require more extensive efforts.

  Wedbush’s Corinna Freedman explains how Blackstone’s involvement helps� Crocs find a McCarvel’s replacement:

  We expect the shares to react positively to the announcement as we believe that a regime change and a shift of balance of power in the Board (with Blackstone having 2 board seats with veto power and presumably, a significant say regar

Hot Growth Companies To Buy For 2014: Intuitive Surgical Inc.(ISRG)

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems for various surgical procedures, including urologic, gynecologic, cardiothoracic, general, and head and neck surgeries. Its da Vinci surgical system consists of a surgeon?s console or consoles, a patient-side cart, a 3-D vision system, and proprietary ?wristed? instruments. The company?s da Vinci surgical system translates the surgeon?s natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. It also manufactures a range of EndoWrist instruments, which incorporate wrist joints for natural dexterity for various surgical procedures. Its EndoWrist instruments consist of forceps, scissors, electrocautery, scalpels, and other surgical tools. In addition, it sells various vision and accessory products for use in conjunction with the da Vinci Surgical System as surgical procedures are performed. The company?s accessory products include sterile drapes used to ensure a sterile field during surgery; vision products, such as replacement 3-D stereo endoscopes, camera heads, light guides, and other items. It markets its products through sales representatives in the United States, and through sales representatives and distributors in international markets. The company was founded in 1995 and is headquartered in Sunnyvale, California.

Advisors' Opinion:

• [By Brian Stoffel]

  Intuitive Surgical (NASDAQ: ISRG  )
  Most of the time, when a company handily beats expectations for revenue and earnings, its stock gets a pretty nice bump. Such was not the case, however, for Intuitive Surgical, maker of the daVinci Surgical Robotic system.

• [By Brian Stoffel]

  After the market closed yesterday, Intuitive Surgical (NASDAQ: ISRG  ) �-- maker of the da Vinci Robotic Surgical System -- announced preliminary results for the second quarter that caused shares to plunge as much as 17% today.

• [By Ben Levisohn]

  Intuitive Surgical (ISRG) has still not discovered the da Vinci code.

  That would be its da Vinci robotic surgery device, which was responsible for a big of today’s disappointing financial report from Intuitive surgical. It reported a profit of $3.99–besting analyst forecasts for $3.40–but revenue plunged to $499 million, well below the $526 million forecast. Intuitive sold just 101 da Vinci systems, Bloombergsays, down from 155 a year ago.

  It wasn’t just da Vinci that disappointed, however. Canaccord Genuity’s Jason Mills and Jeffrey Chu sum up troubling quarter:

  Investors hoping management would call the bottom in falling procedure growth rates were disappointed Thursday evening as issues that have plagued ISRG over the past few quarters could stick around for the foreseeable future, in our view. Slower growth in benign GYN, uncertainty in hospital capital spending (which ISRG attributed to the Affordable Care Act, with which we do not concur), and increased capacity in the U.S. installed base have made predicting robotic system sales particularly difficult. Commentary from management suggests investors should continue to expect lumpiness in the business in the near term. As a result of uncertainty, management narrowed its fullyear sales and procedure growth expectations.

  Raymond James analysts Lawrence Keusch and Konstantin Tcherepachenets see a turnaround taking quarters:

  Although we see long-term growth for robotic surgery, especially as the company�� technology evolves to capture less complex procedures more cost effectively, we believe that it will take several quarters to soak up the excess capacity and drive an improvement in system sales. We remain on the sidelines.

  Intuitive Surgical has fallen 4.4% to $381.39 today, but doesn’t seem to be having much of an impact on comparable companies. Hologic (HOLX) has ticked up 0.2% to $22.06, Danaher (DHR) has fallen -.4% to $72.05 an

• [By Matt Thalman]

  Two other big Dow winners came from the health-care industry as Johnson & Johnson (NYSE: JNJ  ) rose 2.28% and Pfizer (NYSE: PFE  ) gained 2.11%. Johnson & Johnson reported earnings earlier in the week and the company beat on both the top and bottom lines, but after earnings were announced, shares closed even on Tuesday, compared to Monday's close, at $90.40. While investors surely liked the fact that estimates had been topped, they didn't seem to be thrilled with some comments by management that pricing pressure was increasing. But�a poor earnings report, an FDA warning, and weak guidance moving forward from Intuitive Surgical (NASDAQ: ISRG) yesterday�make Johnson & Johnson's medical device unit look stronger than ever. And that's why I believe shares of J&J moved higher today.

Hot Growth Companies To Buy For 2014: TrueBlue Inc.(TBI)

TrueBlue, Inc. provides temporary blue-collar staffing services in the United States. It supplies on demand general labor to various industries under the Labor Ready brand; skilled labor to manufacturing and logistics industries under the Spartan Staffing brand; and trades people for commercial, industrial, and residential construction, and building and plant maintenance industries under the CLP Resources brand. The company also provides mechanics and technicians to the aviation maintenance, repair and overhaul, aerospace manufacturing, and assembly industries, as well as to other transportation industries under the Plane Techs brand; and temporary drivers to the transportation and distribution industries under the Centerline brand. It primarily serves small and medium-size businesses. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington.

Advisors' Opinion:

• [By Jonathan Yates]

  For those looking to invest in real estate stocks, highly recommended is the Dr. Housing Bubble blog. In a recent posting, the "Dr." pointed out that there was a "Lost Generation" when it came to household income. That has not happened for those investing in staffing industry stocks such as Paychex (NASDAQ: PAYX), Robert Half International (NYSE: RHI), TrueBlue, Inc. (NYSE: TBI), and Labor SMART (OTCBB: LTNC).

• [By idahansen]

  The entire demand labor industry should do well as the US Department of Labor just reported that 169,000 more jobs were added to the American economy. The more work there is, the more demand there is for the services of staffing solutions firms such as Labor SMART, Paychex (NASDAQ: PAYX), TrueBlue (NYSE: TBI), and Robert Half International (NYSE: RHI).

• [By Jonathan Yates]

  Even though the stock market rallied on Federal Reserve Chairman Ben Bernanke's remarks with the Dow Jones Industrial Average (NYSE: DIA) and Standard & Poor's 500 Index (NYSE: SPY) surging, the long term winners will be stocks in the staffing industry such as Paychex(NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OTCBB: LTNC).

• [By Jonathan Yates]

  When looking at small cap stocks, it is useful to compare the company with others that have expanded in both share price and size. For those considering investing in the $100 billion staffing industry, the growth of TrueBlue (NYSE: TBI) shows what could be the potential path for Labor SMART (OTCBB: LTNC), as both operate in the $29 billion demand labor sector. Other firms have done well in the staffing industry include Paychex (NASDAQ: PAYX) and ManPower Group (NYSE: MAN).

Hot Growth Companies To Buy For 2014: Checkpoint Systms Inc.(CKP)

Checkpoint Systems, Inc. manufactures and markets identification, tracking, security, and merchandising solutions for the retail and apparel industry worldwide. The company operates in three segments: Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The Shrink Management Solutions segment provides shrink management and merchandise visibility solutions. It offers electronic article surveillance systems, such as EVOLVE, a suite of RF and RFID-enabled products that act as a deterrent to prevent merchandise theft in retail stores; and electronic article surveillance consumables, including EAS-RF and EAS-EM labels that work in combination with EAS systems to reduce merchandise theft in retail stores. This segment also provides keepers, spider wraps, bottle security, and hard tags, as well as Showsafe, a line alarm system for protecting display merchandise. In addition, it offers physical and electronic store monitoring solutions, incl uding fire alarms, intrusion alarms, and digital video recording systems for retail environments; and RFID tags and labels. The Apparel Labeling Solutions segment provides apparel labeling solutions to apparel retailers, brand owners, and manufacturers. It has Web-enabled apparel labeling solutions platform and network of 28 service bureaus located in 22 countries that supplies customers with customized apparel tags and labels. The Retail Merchandising Solutions segment offers hand-held label applicators and tags, promotional displays, and queuing systems. The company serves retailers in the supermarket, drug store, hypermarket, and mass merchandiser markets through direct distribution and reseller channels. Checkpoint Systems was founded in 1969 and is based in Thorofare, New Jersey.

Advisors' Opinion:

• [By Lisa Levin]

  Checkpoint Systems (NYSE: CKP) surged 17.73% to $14.21. The volume of Checkpoint Systems shares traded was 525% higher than normal. Checkpoint announced its intent to extend the filing date of its annual report.

Hot Growth Companies To Buy For 2014: MEDIFAST INC(MED)

Medifast, Inc., through its subsidiaries, engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. The company?s product lines include weight and disease management, meal replacement, and vitamins. It also operates weight control centers that offer Medifast programs for weight loss and maintenance, customized patient counseling, and inbody composition analysis. The company markets its products under the Medifast and Essential brand names, including shakes, appetite suppression shakes, women?s health shakes, diabetics shakes, joint health shakes, coronary health shakes, calorie burn drinks, calorie burn flavor infusers, antioxidant shakes, antioxidant flavor infusers, bars, crunch bars, soups, chili, oatmeal, pudding, scrambled eggs, hot cocoa, cappuccino, chai latte, iced teas, fruit drinks, pretzels, puffs, brownie, pancakes, soy crisps, crackers, and omega 3 and digestive health products. Medifast Inc. sells its products through various channels of distribution comprising Web, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing supported via the phone and the Web; Take Shape for Life, a physician led network of independent health coaches; and weight control centers. The company was founded in 1980 and is headquartered in Owings Mills, Maryland.

Advisors' Opinion:

• [By Jon C. Ogg]

  Medifast Inc. (NYSE: MED) saw its stock down 5% in evening trading on Tuesday after the weight loss player had soft sales and guided expectations lower. Shares were still indicated down about 5%, but volume has not yet started.

• [By Holly LaFon] ast produces, distributes and sells weight and health management products with the brand names Medifast, Take Shape for Life, Hi-Energy Weight Control Centers and Woman�� Wellbeing.

  Its return on assets in the third quarter of 2011 was 19.6%, which has been increasing in the past several years. The average return on assets for the specialty retail industry is 10.48% for the trailing 12 months.

  The company�� total assets amounted to $94 million in 2010, which increased from $62.8 million in 2009. Net income also increased to $19.6 million in 2010 from $12 million in 2009.

  Boston Beer Inc. (SAM)

  Boston Beer Inc. is the largest brewer of handcrafted beers in America. Boston Beer is a growing company that recently saw a large increase in its return on assets. It increased from 19.3% in 2010 to 29.7% in 2011, and was negative as recently as 2008. The average return on assets for the beverages industry in the trailing 12 months is 9.47%.

  In 2011, the company�� total assets increased to $272.5 million from $258.5 million in 2010. Net income increased to $66 million from $50 million.

  Alliances Resources Partners (ARLP)

  Alliance Resources Partners is a coal producer and marketer primarily in the eastern U.S. Its ROA has been increasing since 2008 and increased to 22.5% in 2011 from 21.4% in 2010. The average return on assets for the oil, gas & consumable fuels industry in the trailing 12 months is 24.47%.

  In 2011, its total assets increased to $1.7 billion from $1.1 billion in 2010. Its net income increased to $389 million from $321 million.

  Factset Research Systems Inc. (FDS)

  Factset researches global market trends and develops analytical tools for investors. Of all of GuruFocus��5-star predictable companies, it has the highest return on assets at 27%. ROA has been increasing over the past several years. The average return on assets for the software industry for the trailing 12 m

Hot Growth Companies To Buy For 2014: Eastern Insurance Holdings Inc.(EIHI)

Eastern Insurance Holdings, Inc., through its subsidiaries, provides workers compensation insurance and reinsurance products in the United States. The company?s Workers Compensation Insurance segment provides traditional workers compensation insurance coverage products, including guaranteed cost policies, policyholder dividend policies, retrospectively-rated policies, deductible policies, and alternative market products to employers. This segment distributes its workers? compensation products and services through its independent insurance agents primarily in Pennsylvania, Delaware, North Carolina, Maryland, Indiana, and Virginia. Its Segregated Portfolio Cell Reinsurance segment offers alternative market workers compensation solutions comprising program design, fronting, claims administration, risk management, segregated portfolio cell rental, asset management, and segregated portfolio management services to individual companies, groups, and associations. Eastern Insurance Holdings, Inc. is headquartered in Lancaster, Pennsylvania.

Advisors' Opinion:

• [By Lauren Pollock]

  ProAssurance Corp.(PRA) agreed to acquire Eastern Insurance Holdings Inc.(EIHI) for about $205 million, expanding the insurance company’s casualty insurance offerings. Eastern Insurance is a domestic casualty insurance group specializing in workers’ compensation products and services, among other things. ProAssurance plans to pay $24.50 in cash for each outstanding Eastern share, a 16% premium over Monday’s closing price.