Top 5 Information Technology Stocks For 2014

With shares of International Business Machines (NYSE:IBM) trading around $178, is IBM 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

IBM is an information technology company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. Technology products and services are in high demand worldwide as consumers want to be up-to-speed, and companies always need the latest and greatest to stay ahead of the competition. Cloud computing has been hot in recent times, which has not been good news for IBM. Should the company want to hold on to its market share, it needs to make moves quickly, and provide the technology products and services that worldwide consumers and companies demand.

IBM is swiveling to win over a new market in the competition — India — and attacking Amazon (NASDAQ:AMZN) via ads is a major strategy, according to the Economic Times. Amazon�� new effort in India comes in the wake of a losing a federal contract worth $600 million to Amazon. The contract was with the Central Intelligence Agency. IBM contested the contract in court, trying to claim it for itself ��but the court ruled that the contract remain with Amazon.

Hot New Stocks To Invest In 2015: Brocade Communications Systems Inc.(BRCD)

Brocade Communications Systems, Inc. supplies networking equipment comprising end-to-end Internet protocol based Ethernet and storage area networking solutions. Its Data Storage segment provides infrastructure products and solutions, including directors, switches, routers, fabric-based software applications, distance/extension products, management applications, and utilities to centralize data management; and host bus adapters, converged network adapters, mezzanine cards, and switch modules for bladed servers. The company?s Ethernet Products segment offers Open Systems Interconnection Reference Model (OSI) Layer 2-3 switches and routers, which enable the use of bandwidth-intensive network business applications and digital entertainment on local area networks and wide area networks; and OSI Layer 4?7 switches that allow enterprises and service providers to build network infrastructures to direct the flow of traffic, and file area network products and associated management s olutions. The company?s Global Services segment provides break/fix maintenance, extended warranty, installation, consulting, network management, and related software maintenance and support services; consulting and support services that assist customers in designing, implementing, deploying, and managing networking solutions; and post-contract customer support and extended warranties. It serves various businesses and organizations, which include global enterprises and service providers, such as telecommunication firms, cable operators, and mobile carriers. The company has a strategic partnership with LG-Ericsson. It offers its products and services to end-user customers directly, and through various distribution partners comprising original equipment manufacturers, distributors, systems integrators, and value-added resellers in the United States, western Europe, Japan, and the greater Asia Pacific region. The company was founded in 1995 and is headquartered in San Jose, Cali fornia.

Advisors' Opinion:

• [By Harry Boxer]

  Brocade Communications Systems Inc. (BRCD) �had a very significant breakout on Tuesday on earnings, up 67 cents, or 8.3%, to 8.77 on 15.3 million shares. With the breakout across multiple tops over the last few months, it sure looks like a parallel channel is forming, which could lead to 10.00, maybe 11.00, on this stock.

• [By Holly LaFon]

  Some of Elliott Management�� top equity positions in the first quarter 2012 are Brocade Communications Systems (BRCD), Delphi Automotive (DFG), Iron Mountain (IRM) and News Corp. (NWS).

• [By jaggom]

  Brocade Communications (BRCD) is another company that provides solutions similar to EMC, but it is a smaller player. Brocade earns 50% of its total revenue from its core service of storage area networks (SAN). However, it faced a 7% decline in revenue in the second quarter from the prior year period. This can be concerning for investors. With major players like Cisco (CSCO), Brocade faces fierce competition for its core business and the company might be in for tough times.

• [By Muhammad Bazil]

  There is a looming monumental change in the information technology sector that will obviously benefit some existing producers of technology networking equipment but unfortunately, some will be drowned in the ensuing storm. The size of the networking equipment industry where Cisco Systems (CSCO) currently plays a prominent role is massive: The industry is worth about $50 billion in annual spending. Cisco is a tech manufacturing company that manufactures and markets Internet protocol-based switches and routers commonly used by networking companies and professionals for data and voice transmission across networks. Other major players in this industry include F5 Networks (FFIV), Juniper Networks (JNPR) and Brocade (BRCD).

Top 5 Information Technology Stocks For 2014: Sterling Construction Company Inc(STRL)

Sterling Construction Company, Inc., a heavy civil construction company, engages in the building, reconstruction, and repair of transportation and water infrastructure. Its transportation infrastructure projects include highways, roads, bridges, and light rail and commuter rail; and water infrastructure projects comprise water, wastewater, and storm drainage systems. The company also provides general contracting services, such as excavating, concrete and asphalt paving, installation of large-diameter water and wastewater distribution systems, construction of bridges and similar large structures, construction of light and commuter rail infrastructure, concrete and asphalt batch plant operations, and concrete crushing and aggregates operations. It serves public sector customers, including county and municipal public works departments, regional transit and water authorities, port authorities, school districts, and municipal utility districts, as well as private customers prim arily in Texas, Utah, Nevada, Arizona, and California. The company was formerly known as Oakhurst Company, Inc. and changed its name to Sterling Construction Company, Inc. in November 2001. Sterling Construction Company, Inc. was founded in 1954 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Laura Brodbeck]

  Notable earnings releases expected on Monday include:

  LAN Chile S.A. (NYSE: LFL) is expected to report fourth quarter EPS of $0.24 on revenue of $3.50 billion, compared to last year�� EPS of $0.02 on revenue of $3.48 billion. JA Solar Holdings, Co. Ltd (NASDAQ: JASO) is expected to report EPS of $0.03 on revenue of $291.75 million, compared to last year�� loss of $2.65 per share on revenue of $268.09 million. Sterling Construction Company, Inc�(NASDAQ: STRL) is expected to report a fourth quarter loss of $1.47 per share on revenue of $153.07 million, compared to last year�� EPS of $0.18 on revenue of $158.09 million.

  Economics

Top 5 Information Technology Stocks For 2014: Textainer Group Holdings Limited(TGH)

Textainer Group Holdings Limited, through its subsidiaries, engages in the purchase, ownership, management, leasing, and resale of a fleet of marine cargo containers worldwide. The company leases dry freight containers, as well as special-purpose containers to shipping lines, freight forwarding companies, and the United States military; manages a fleet of containers for and on behalf of the owners; and buys and resells used containers. It operates a fleet of approximately 1.6 million containers. The company was founded in 1979 and is headquartered in Hamilton, Bermuda. Textainer Group Holdings Limited is a subsidiary of Halco Holdings Inc.

Advisors' Opinion:

• [By Ong Kang Wei]

  Another example of such a company is Textainer Group Holdings (TGH). Besides having a great container leasing service that is needed by shipping companies, like Digital Realty, it is the undisputed leader in its industry. Being the largest of its kind in the world, the company has a significant economies of scale benefit. This means that Textainer will get the lion's share of the profits, which is proven by the company's outsized profit margin of 42.10%.

• [By Selena Maranjian]

  Textainer (NYSE: TGH  ) is in the business of leasing big containers for use in intermodal shipping. The shipping business can be expected to pick up as the global economy gets back on its feet. Textainer has recently been expanding into the leasing of tanks, as well. The company offers not only an appealing dividend yield of 4.9%, but it also has been raising that payout significantly, more than doubling it over the past five years. Its payout ratio is below 50%, too, suggesting plenty of room for further growth. Textainer's stock seems reasonably or attractively priced, too, with its forward P/E ratio of 8.0 below its five-year average of 8.5. Bears don't like its rising debt or negative free cash flow, though (which is partly a result of beefing up its supply of containers), but there's still a lot to like about it.

• [By Joseph Hogue]

  There is one particular shipping company of which investors are being especially fearful, to the point of hating it. I'm talking about Textainer Group Holdings (NYSE: TGH), a container leasing company with 2.6 million 20-foot equivalent containers, the largest fleet among its peers.

Top 5 Information Technology Stocks For 2014: Turcas Petrol AS (TRCAS)

Turcas Petrol AS (Turcas) is a Turkey-based integrated energy holding company that operates in the fields of fuel distribution, oil refining, power generation & trading, and import & wholesale of natural gas. The joint venture company, Shell & Turcas Petrol AS (STAS), carries out the Company�� fuel distribution activities through a network of gas stations, delivering services across Turkey. Its Oil refining and petroleum production is undertaken by SOCAR & Turcas Energy (STEAS). The Company operates its power generation, trading and distribution activities through Turcas Energy Holding. The import, export and wholesale of natural gas are handled by Turcas Gas Trading. Advisors' Opinion:

• [By Lyubov Pronina]

  Akbank sank 4.2 percent in Istanbul, falling for a sixth straight day, the longest streak in almost two months. Turcas Petrol AS (TRCAS) lost 1.6 percent after the Turkish energy company said Finance Ministry officials started an inspection at its venture with Royal Dutch Shell Plc.