10 Best Quality Stocks For 2014

Nathaniel E. Bell/APA scene from Netflix's "House of Cards," starring Kevin Spacey and Jackie Sharp. NEW YORK -- Americans are turning away from live TV on the tube and tuning in to streaming services, a Nielsen report says. That's bad news for cable and satellite TV providers. Americans are increasingly watching TV shows and movies on Netflix (NFLX), Hulu, Amazon.com (AMZN) streaming and other services. CBS (CBS) and HBO (TWX) have announced standalone streaming services as well. About 45 percent of Americans stream television shows at least once a month, according to research firm eMarketer. That number is expected to increase to 53 percent or 175 million people by 2018, it says. According to the Nielsen report, which came out Wednesday, the average daily time spent watching live TV fell 12 minutes in the third quarter to four hours and 32 minutes. That means it dropped nearly 4 percent to 141 hours a month. Meanwhile, time spent watching streaming services jumped 60 percent to nearly 11 hours each month. That's still a small amount compared with live TV, but it is growing quickly. "Content is still king, but consumers are shaping their own content-discovery experience, and the evolving media landscape has not lessened consumer demand for quality, professionally produced content," Dounia Turrill, senior vice president of insights at Nielsen, said in a statement. "What has changed is the number and reliability of new media available to viewers." Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. More from The Associated Press
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5 Best Energy Stocks To Own Right Now: Westell Technologies Inc.(WSTL)

Westell Technologies, Inc., through its subsidiaries, engages in the design, distribution, marketing, and servicing a range of broadband, digital transmission, remote monitoring, power distribution, and demarcation products used by telephone companies and other telecommunications service providers. It operates in three segments: Customer Networking Systems (CNS) equipment, Outside Plant Systems (OSP) equipment, and ConferencePlus services. The CNS equipment segment provides networking and high-speed transmissions products, such as modems, routers, versatile gateway devices, and wireless broadband home routers that allow service providers to deliver broadband services over existing copper, fiber, coax, or wireless infrastructures. The OSP segment offers next generation outdoor cabinets; enclosures; power distribution; fiber, Ethernet, and coax edge connectors; remote monitoring equipment; and DS1 and DS3 transmission plugs. This segment also markets and sells power distribu tion and remote monitoring solutions. The ConferencePlus services segment provides audio, Web, and video conferencing services to businesses and individuals. This segment sells its services directly to Fortune 1000 companies, and indirectly through its private reseller programs. The company offers its products through field sales organizations and selected distributors in the United States, as well as in Canada and Europe. Westell Technologies, Inc. was founded in 1980 and is headquartered in Aurora, Illinois.

Advisors' Opinion:

• [By Rich Smith]

  Late last month, the networking equipment maker had to scramble when its acting chief financial officer, Tom Minichiello, announced plans to retire on July 12 to become the new CFO at Westell Technologies (NASDAQ: WSTL  ) . On Friday, though, just as the deadline was happening, Tellabs announced that it has found a replacement.

• [By Geoff Gannon]

  1. Steel Excel (SXCL)
  2. FormFactor (FORM)
  3. Imation (IMN)
  4. Tuesday Morning (TUES)
  5. Pacific Biosciences (PACB)
  6. Maxygen (MAXY)
  7. Westell (WSTL)
  8. Volt Information Sciences (VISI)
  9. Yasheng Group (YHGG)

10 Best Quality Stocks For 2014: Volvo AB (VOLVY)

AB Volvo is a supplier of commercial transport solutions providing products, such as trucks, buses, construction equipment, engines and drive systems for boats and industrial applications, as well as aircraft engine components. The Company also offers its customers financial solutions. The Company operates in six segments: Trucks, Buses, Construction Equipment, Volvo Penta, Volvo Aero and Financial Services. The business units include Volvo 3P, Volvo Powertrain, Volvo Parts, Volvo Logistics, Volvo Business Services, Volvo Information Technology (IT), Volvo Real Estate and Volvo Technology. During the year ended December 31, 2009, AB Volvo acquired all shares in Volvo Logistics AB from Fortos Ventures AB. In April 2014, the Company announced that it has completed the sale of commercial real estate. In June 2014, the Company acquired Terex's hauler business.

The Company�� truck operations consist of Volvo Trucks, Renault Trucks, UD Trucks, Mack Trucks and VE Commercial Vehicles (50%) in India. The product offer stretches from heavy-duty trucks for long-haulage and construction work to light-duty trucks for distribution. Volvo Trucks, Renault Trucks, UD Trucks, Mack Trucks and Eicher offer customers a range of products and services for transports.

The Buses has a product range consisting of city and intercity buses, coaches and chassis. Volvo Buses��product line includes complete buses and bus chassis for city, intercity and coach traffic. The Company has a total offering that, in addition to buses, includes a service network, spare parts handling, service and repair contracts, financial services and traffic information systems.

The Company�� construction equipment manufactures equipment for construction applications and related industries. Volvo Construction Equipment develops, manufactures and markets equipment for construction and related industries. Its products include a range of wheel loaders, hydraulic wheeled and crawler excavators, articulated haule! rs, road machinery and a range of compact equipment.

The Company�� Volvo Penta offers engines and drives systems for leisure and commercial boats and for industrial applications, such as gensets and materials handling. Volvo Penta manufactures engines and drive systems for marine applications, for both leisure and commercial craft, with an engine range of 10 to 1,200 horse power and has a global service network with approximately 5,000 dealers. Volvo Penta also supplies industrial engines ranging from 75 kilowatts to 600 kilowatts for irrigation pumps, generator units and other application areas.

The Company�� Volvo aero offers advanced components for aircraft engines and space applications with a focus on lightweight technology for reduced fuel consumption. Volvo Aero specializes in a number of highly advanced components for aircraft engines and space rockets.

The Company�� financial services segment conducts operations in customer and dealer financing. It offers financial services, such as customer and dealer financing and other Services, such as insurance contribute to create customer value. It provides financing solutions and other services in retaining customers and attracting new ones to the Company.

The Company competes with Daimler, Paccar, Navistar, MAN, Scania, Caterpillar, Komatsu, Cummins and Brunswick.

Advisors' Opinion:

• [By Jason Hall]

  However, there are a couple of bright spots out there. First, sales of Westport's 12 liter ISX12 G, being co-built with�Cummins� (NYSE: CMI  ) , are on track to meet targets for 2014 according to a number of industry experts. Sales of natural gas trucks in 2014 are expected to have grown 27% this year versus 2013. Also, part of the delay in bringing HPDI to market is Westport's shift to HPDI 2.0, and the adoption of HPDI 2.0 by development partners like�AB Volvo� (NASDAQOTH: VOLVY  ) . The injector components are expected to be manufactured in Westport's venture with�Delphi Automotive� (NYSE: DLPH  ) , and the costs will be less than earlier versions, helping natural gas engines be more cost-competitive with diesel.�

10 Best Quality Stocks For 2014: Pactera Technology International Ltd (PACT)

Pactera Technology International Ltd. (Pactera), formerly HiSoft Technology International Limited, incorporated on May 27, 2004, provides global consulting and technology services. The Company provides business/information technology (IT) consulting, solutions, and outsourcing services to a range of multinational firms through a globally integrated network of onsite and offsite delivery locations in China, the United States, Europe, Australia, Japan, Singapore and Malaysia. In January 2014, Pactera Technology International Ltd announced the acquisition of Innoveo Solutions AG.

The Company�� services include business and technology advisory, enterprise application services, business intelligence, application development and maintenance, mobility, cloud computing, infrastructure management, software product engineering and globalization, and business process outsourcing. The Company�� clients include 3M, ABB, Cathay Pacific, China Merchants Bank, Citibank, EMC, Expedia, GE, HP, IBM, Lenovo, Microsoft, Mitsubishi, NEC and TIBCO.

Advisors' Opinion:

• [By Seth Jayson]

  Pactera Technology International (Nasdaq: PACT  ) reported earnings on May 23. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Pactera Technology International missed estimates on revenues and met expectations on earnings per share.

• [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 Pactera Technology International (Nasdaq: PACT  ) , whose recent revenue and earnings are plotted below.

10 Best Quality Stocks For 2014: Dollar General Corporation(DG)

Dollar General Corporation operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern United States. The company offers consumables, including paper towels, bath tissue, paper dinnerware, trash and storage bags, laundry, and other home cleaning supplies; packaged food and perishables; beverages and snacks, such as candies, cookies, crackers, salty snacks, and carbonated beverages; over-the-counter medicines and personal care products; and pet supplies and pet food products. It also provides seasonal products consisting of decorations, toys, batteries, small electronics, greeting cards, stationery, prepaid cell phones and accessories, gardening supplies, hardware, and automotive and home office supplies; home products comprising kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies, and bed and bath soft goods; and apparel products, such as casual everyday apparel for infants, toddlers, girls, boys, women and men, as well as offers socks, underwear, disposable diapers, shoes, and accessories. In addition, the company holds a license to Bobbie Brooks clothing, as well as the Fisher Price brand for various items of children's clothing. As of May 25, 2011, it operates approximately 9,500 stores in 35 states. The company was formerly known as J.L. Turner & Son, Inc. and changed its name to Dollar General Corporation in 1968. Dollar General Corporation was founded in 1939 and is based in Goodlettsville, Tennessee.

Advisors' Opinion:

• [By J. Royden Ward]

  Dollar General (DG) is the largest discount retailer in the US, with 11,000 neighborhood stores in 40 states. Because of its large size, Dollar General is able to offer an ample array of products from America's largest manufacturers, including Procter & Gamble, Kimberly Clark, Kellogg's, PepsiCo, and Coca-Cola.

• [By Dan Caplinger]

  Finally, outside the Dow, Dollar General (NYSE: DG  ) plunged 9% after a poor earnings report. Citing the payroll tax increase and weaker margins due to greater markdowns and a lower-margin mix of products, the deep-discount retailer narrowed its earnings and revenue guidance to the lower half of its previously projected range. If the Fed's moves put further pressure on consumers, then Dollar General could keep seeing pressure even as it expands ambitiously to add to its store count nationwide.

10 Best Quality Stocks For 2014: Fastenal Company(FAST)

The Company Is Engaged As A Wholesaler And Retailer Of Industrial And Construction Supplies. The Industrial And Construction Supplies Were Grouped Into Ten Product Lines: Fasteners, Tools And EquipmeNt, Cutting Tools And Abrasives, Hydraulics, Pneumatics, Plumbing And Hvac, Material Handling, Storage And Packaging, Janitorial Supplies, Chemicals And Paints, Electrical Supplies, Welding Supplies, Safety Supplies And Metals, Alloys And Materials.

Advisors' Opinion:

• [By Dividends4Life]

  Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
  
  1. Avg. High Yield Price
  2. 20-Year DCF Price
  3. Avg. P/E Price
  4. Graham Number
  
  GWW is trading at a premium to all four valuations above. The stock is trading at a 10.0% premium to its calculated fair value of $219.95. GWW did not earn any Stars in this section.
  
  Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
  
  1. Free Cash Flow Payout
  2. Debt To Total Capital
  3. Key Metrics
  4. Dividend Growth Rate
  5. Years of Div. Growth
  6. Rolling 4-yr Div. > 15%
  
  GWW earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. GWW earned a Star for having an acceptable score in at least two of the four Key Metrics measured.
  
  Rolling 4-yr Div. > 15% means that dividends grew on average in excess of 15% for each consecutive 4 year period over the last 10 years (2003-2006, 2004-2007, 2005-2008, etc.) I consider this a key metric since dividends will double every 5 years if they grow by 15%. The company has paid a cash dividend to shareholders every year since 1965 and has increased its dividend payments for 42 consecutive years.
  
  Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked

• [By Chris Hill]

  In this installment, our analysts discuss four stocks making big moves.�CarMax (NYSE: KMX  ) hits an all-time high after fourth-quarter profits rise. PriceSmart (NASDAQ: PSMT  ) jumps after the retailer reports better-than-expected results. Fastenal (NASDAQ: FAST  ) falls after it reports weaker-than-expected revenues. And 3D Systems (NYSE: DDD  ) racks up big gains after one of its competitors gets an upgrade.�

• [By Ben Levisohn]

  In fact, some of the biggest movers this week were earnings related. Alcoa (AA) got things kicked off on Tuesday–despite its exclusion from the Dow–when it beat earnings handily. It gained 4.5% to $8.32 this week. Safeway (SWY), meanwhile, gained 6.7% to $33.75 after terrible earnings were trumped by asset sales. No such luck for Fastenal (FAST), which plunged 6.3% this week after it missed earnings by a penny.

10 Best Quality Stocks For 2014: Cedar Shopping Centers Inc (CDR)

Cedar Shopping Centers, Inc., real estate investment trust, engages in the ownership, operation, development and redevelopment of supermarket-anchored community shopping centers and drug store-anchored convenience centers in the United States. As of December 31, 2007, it owned 118 properties, aggregating approximately 12.0 million square feet of gross leasable area primarily in Pennsylvania, Massachusetts, Virginia, Ohio, Connecticut, New Jersey, Maryland, Michigan, and New York. Cedar Shopping has elected to be treated as a REIT for federal income tax purposes and would not be subject to federal income tax, if it distributes at least 90% of its REIT taxable income to its stockholders. The company was founded in 1984 and is based in Port Washington, New York.

Advisors' Opinion:

• [By Bill Smith]

  Valuation
  Lastly, because of the negative perception the entire industry has received, prices in this sector have been absolutely pummeled. ESI now trades at the lower end of all of its historical valuation bands: P/E, P/B, and P/S.
  
  Bullish Points
  Guru ownership and avg price: ESI owned by Hussman ($76.15), Weitz ($75.32), and Greenblatt ($73.29)Over 35% of shares are short, potential short squeezeStock buyback plan: ESI reduced outstanding shares by 19% yoy at the end of the 4th quarter. They repurchased 370K shares in 3Q11.The business model is scalable; the incremental cost to educate each additional student is low, leading to high marginsESI acquired Daniel Webster College, giving them a regional accreditation which they can use to broaden their reach in online classes
  Bearish Points
  High costs of education, in general, rightly or wrongly attract government intervention and could squeeze margins over time. Total student debt surpassed credit card balances, and sits at $1 Trillion as of the end of 2011.Subject to compliance with Dept of Education's 90/10 rules, which states a college can't collect more than 90% of revenue from students participating in federal loan programs.Cohort Default Rate (CDR): for-profit colleges must monitor the federal loan default rates of students who graduate or leave the school. If a school's CDR exceeds 25% for 3 consecutive years, or 40% in any one year, its students won't be eligible for federal financial aid.ESI competes on quality of product which is measured by graduation rates and ability to secure employment. For 2010, 70% of ESI graduates got employment in positions using skills taught in their program of study within 1 year. As of Oct 2011, this rate was 600 bp higher. The average annual salary reported by employed 2011 grads was $32K, compared to $32.4K for 2010 grads.With an improving economy, there's a potential ESI would see declining new student enrollmentsOver 35% of shares are short
  Summary

10 Best Quality Stocks For 2014: Network Exploration Ltd (NET)

Network Exploration Ltd. is an exploration and development-stage company. The Company�� principal business activities include the exploration of minerals in its mineral properties. It focuses on base and precious metal properties in North and South America. Its activities include the process of exploring its mineral properties, reviewing and subsequently acquiring mineral properties and conducting exploration programs to determine whether these properties contain ore reserves that are recoverable. The Picha copper-silver project is located within the Tertiary Volcanic Arc of Southern Peru. The Pistala project is located east of the NW-SE trending Incapquio fault system in the Department of Tacna, Southern Peru. The Company is in the business of mineral exploration in Canada, Chile and Peru. Network Exploration Chile Limitada is its wholly owned subsidiary. Advisors' Opinion:

• [By Holly LaFon]

  The IVA International Fund (Trades, Portfolio) Class A, at net asset value, returned 7.05% over the one year period ending September 30, 2014 compared to the MSCI All Country World (ex-U.S.) Index (Net)* (the ��ndex�� return of 4.77% over the same period.

• [By Holly LaFon]

  MSCI All Country World Index (Net) is an unmanaged index comprised of 44 country indices comprising 23 developed and 21 emerging market country indices and is calculated with dividends reinvested after de duction of withholding tax. The Index is a trademark of Morgan Stanley Capital International and is not available for direct investment.

• [By Holly LaFon]

  The MSCI World ex U.S. Small Cap Index (Net) is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance, excluding the U.S. The MSCI Small Cap Indices target 40% of the eligible Small Cap universe within each industry group, within each country. MSCI defines the Small Cap universe as all listed securities that have a market capitalization in the range of USD200-1,500 million. This benchmark calculates reinvested dividends net of withholding taxes using Luxembourg tax rates. This index is unmanaged and investors cannot invest directly in this index.