Top 10 Diversified Bank Stocks To Watch For 2014

Editor's Note: This article is brought to you by Steve Reitmeister, Executive VP with Zacks Investment Research.

I wasn't always a good investor. Over the past 32 years I've made just about every mistake imaginable. 

-- Jumped in at the peak

-- Jumped out too late

-- Bought falling knives

-- Doubled down on losers

-- You name it, I probably did it.

By the time I joined up with Zacks Investment Research in August 1999, I had eradicated most of those bad habits. But as Len Zacks, founder, and his brother Ben pointed out... I had a lot to learn.

You see, Len's life's work has been to help investors find success and in 1978, armed with his PhD from MIT, he hit upon a key discovery:

Earnings estimate revisions are the most powerful force impacting stock prices.

Hot Beverage Stocks To Invest In Right Now: Hercules Technology Growth Capital Inc (HTGC)

Hercules Technology Growth Capital, Inc. (HTGC), incorporated on December 18, 2003, is an internally managed, non-diversified closed-end investment company. The Company is a specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and clean-technology industries at all stages of development. The Company's investment objective is to maximize the Company's portfolio total return by generating current income from its debt investments and capital appreciation from its equity-related investments. The Company invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The Company also makes investments in qualifying small businesses through two wholly-owned, small business investment company (SBIC) subsidiaries, Hercules Technology II, L.P. (HT II) and Hercules Technology III, L.P. (HT III).

The Company focuses its investments in companies active in the technology industry sub-sectors characterized by products or services that requires advanced technologies, including, but not limited to, computer software and hardware, networking systems, semiconductors, semiconductor capital equipment, information technology infrastructure or services, Internet consumer and business services, telecommunications, telecommunications equipment, renewable or alternative energy, media and life science. Within the life science sub-sector, the Company generally focuses on medical devices, bio-pharmaceutical, drug discovery, drug delivery, health care services and information systems companies. Within the clean technology sub-sector, the Company focuses on sustainable and renewable energy technologies and energy efficiency and monitoring technologies. The Company refers to all of these companies as technology-related companies and intend, under normal circumstances, to invest at least 80% of the value of its assets in such businesses. Advisors' Opinion:

• [By Bryan Perry]

  My first BDC recommendation for you is Hercules Technology Growth Capital (HTGC). Based in Palo Alto, Calif., Hercules is a leading specialty finance company that provides venture debt and equity to venture capital and private equity-backed technology and life-science companies.

• [By Chad Tracy]

  StreetAuthority expert analyst Amy Calistri has had incredible success with BDCs in her Daily Paycheck portfolio. When she recommended Hercules Technology (NYSE: HTGC) in February 2010, the stock was trading for a little more than $10 a share.

Top 10 Diversified Bank Stocks To Watch For 2014: Arris Group Inc(ARRS)

Arris Group, Inc. develops, manufactures, and supplies telephony, data, video, construction, rebuild, and maintenance equipment for the broadband communications industry worldwide. The company operates in three segments: Broadband Communications Systems (BCS); Access, Transport, and Supplies (ATS); and Media and Communications Systems (MCS). The BCS segment provides VoIP and high speed data products, including CMTS edge routers, 2-line residential EMTA, multi-line EMTA for residential and commercial services, wireless gateway, and high speed data cable modems; video/IP products comprising CMTS edge routers, broadband and universal EdgeQAM, and whole home gateway and media players; and video processing products, such as switched digital video systems, digital video encoders, transcoders, transraters, and statistical multiplexers. The ATS segment offers hybrid fiber-coaxial plant equipment products comprising headend and hub products, optical transmitters, optical amplifiers , optical repeaters, optical nodes, WiFi access points, ePON optical network units and line terminals, RF over glass optical network units, and radio frequency amplifiers; and infrastructure products for fiber optic or coaxial networks, which include cable and strand, vaults, conduit, drop materials, tools, connectors, and test equipment. The MCS segment provides media, delivery, and monetization platform products, such as video on demand management and distribution, and linear and advanced advertising; operations management systems comprising network and service assurance, and mobile workforce management; and fixed mobile convergence platform products, such as mobility application servers for continuity of services in wireless and PacketCable networks, and voice call continuity application servers for continuity of services in IP multimedia subsystem networks. The company offers its services to cable system operators. Arris Group, Inc. was founded in 1969 and is headquarter ed in Suwanee, Georgia.

Advisors' Opinion:

• [By Evan Niu, CFA]

  Google also sold off the Motorola Home business to Arris� (NASDAQ: ARRS  ) in a $2.4 billion cash and stock deal, which closed this month. Big G is now the proud owner of a 7.7% stake in Arris, while its net cost for Motorola subsequently declined to around $7.1 billion.

Top 10 Diversified Bank Stocks To Watch For 2014: Ryanair (RYAAY)

Ryanair Holdings plc (Ryanair Holdings), incorporated in 1996, is a holding company for Ryanair Limited (Ryanair). Ryanair operates a low-cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, and Morocco. As of June 30, 2012, the Company offered approximately over 1,500 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe with an operating fleet of 294 aircraft flying approximately 1,500 routes. Ryanair sells seats on a one-way basis. The Company also holds a 29.8% interest in Aer Lingus Group plc. As of June 30, 2012, Ryanair�� operating fleet was composed of 294 Boeing 737-800 aircraft, each having 189 seats. Ryanair�� fleet totaled 294 Boeing 737-800s at March 31, 2012. As of June 30, 2012, Ryanair owned and operated four Boeing 737-800 full flight simulators for pilot training. Ryanair provides ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food, and merchandise. As part of its non-flight scheduled and Internet-related services Ryanair incentivizes ground service providers at airports it serves to levy correct excess baggage charges for any baggage, which exceeds Ryanair�� published baggage allowances. Excess baggage charges are recorded as non-flight scheduled revenue. Ryanair distributes accommodation services and travel insurance through its Website. For hotel services, Ryanair has a contract with Hotelscombined PTY Ltd. (Hotelscombined), which operates a price comparison Website, pursuant to which Hotelscombined handles all aspects of such services marketed through Ryanair�� Website and pays a fee to Ryanair. Ryanair also has contracts with other accommodation providers that enable Ryanair to offer hostel, bed-and-breakfast, guesthouse, villa and apartment accommodation to its customers. In addition Ryanair has a contract with Hertz, pursuant to which Hertz handles all car rental services marketed through Ryanair�� Website or telephone reservation system. Ryanair also sells bus and rail tickets onboard its aircraft and through its Website. Ryanair also sells attractions and activities on its Website. Ryanair sells gift vouchers on its Website, which are also redeemable online. The Company has an contract with Webloyalty International Ltd, which offers Ryanair�� customers who have a United Kingdom, German or French billing address a retail discount and cash-back program. Ryanair has agreements, pursuant to which the Company promotes Ryanair-branded credit cards issued by MBNA, GE Money, Access Prepaid and Banco Santander on its Internet site. The MBNA agreement relates to Irish residents only, the GE Money agreement relates to Swedish and Polish residents only and the Banco Santander agreement relates to United Kingdom residents only. During the fiscal year ended March 31, 2012, Ryanair rolled out handheld Electronic Point of Sale (EPOS) devices across its route network. These EPOS devices replaced manual and paper based systems on board the aircraft. The EPOS device enables cabin crew to sell and record their on-board sales transactions. The EPOS device also issues bus and rail tickets and tickets for tourist attractions. The Company also offers reserved seating in twenty-one extra legroom seats on each aircraft for a fee on certain routes. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. Third parties provide these services to Ryanair at other airports it serves. Servisair plc provides Ryanair�� ticketing, passenger and aircraft handling, and ground handling services at airports in Ireland and the United Kingdom(excluding London (Stansted) Airport where these services are provided by Swissport Ltd.), while similar services in continental Europe are provided by the local airport authorities, either directly or through sub-contractors. Advisors' Opinion:

• [By Asit Sharma]

  The airline industry has a singular talent for draining the pockets of well-intentioned investors. Highly leveraged balance sheets and bankruptcies are the norm. Significant labor costs and unpredictable jet fuel prices wreak havoc on variable costs. Yet some airlines generate solid returns quarter after quarter. Alaska Air Group (NYSE: ALK  ) , Ryanair (NASDAQ: RYAAY  ) , Southwest Airlines (NYSE: LUV  ) , and Copa Holdings (NYSE: CPA  ) each manage to be consistently profitable. Let's examine a few themes they share in common, and zero in on their individual strategic ideas.

• [By Luke Jacobi]

  Ryanair Holdings plc (NASDAQ: RYAAY) shares were up nearly 6.97 percent into the close to $54.53 after the company reported full-year results. Ryanair's net profit for the year ended March 31 slipped to 522.8 million euros ($716 million), versus a year-ago profit of 569.3 million euros.

• [By GURUFOCUS]

  In the world of publicly-owned businesses, we try to invest with the same sort of individuals. In our opinion, Michael O'Leary, Ryanair's Chairman and CEO, is one such example of a talented, driven executive. Michael was born on a farm in Ireland, the second oldest of six siblings. Although his beginnings were not remarkable, Michael figured out how to get the best education he could by attending the best schools he could. After attending a Jesuit boarding school as a young boy, he graduated from Trinity College with an accounting degree; began his career working for KPMG, a large public accounting firm; and, soon afterwards, became a financial advisor to Tony Ryan, Ryanair's founder. In 1986, Michael was hired to work for Ryan and initially advised him to close the airline immediately since it was losing so much money! In 1989, when Ryanair (RYAAY) was on the brink of insolvency, Ryan offered Michael the job of Deputy CEO of the airline and in 1994 as its CEO. Michael accepted, on the condition that if he couldn't make it profitable, he would be allowed to shut it down! He also chose to work for a percentage of profits rather than for a salary from the money losing business.

Top 10 Diversified Bank Stocks To Watch For 2014: New Residential Investment Corp (NRZ)

New Residential Investment Corp., incorporated on September 26, 2013, is a real estate investment trust. The Company focuses on investing in, and actively managing, investments related to residential real estate. On May 15, 2013, Newcastle Investment Corp. announced that the spin-off of New Residential Investment Corp.

The Company is managed by an affiliate of Fortress Investment Group LLC, a global investment management. The Company primarily target investments in excess mortgage servicing rights, residential mortgage backed securities, residential mortgage loans and other related investments.

Advisors' Opinion:

• [By Lauren Pollock]

  New Residential Investment Corp.(NRZ) and other investors agreed to buy about $3.2 billion of servicing advances from Nationstar Mortgage Holdings Inc.(NSM), part of Nationstar’s plan to reconfigure its acquisition structure. The advances relate to nonagency residential mortgage loans with an unpaid principal balance of about $58 billion. Nationstar shares rose 4.1% to $42.50 in light premarket trading.

Top 10 Diversified Bank Stocks To Watch For 2014: Newport Corporation(NEWP)

Newport Corporation and its subsidiaries provide technology products and systems to scientific research, microelectronics, aerospace and defense/security, life and health sciences, and industrial markets in the United States, Europe, and the Pacific Rim. The company operates in three divisions: Photonics and Precision Technologies (PPT), Lasers, and Ophir. The PPT division provides photonics instruments and systems; vibration isolation systems and subsystems; precision positioning devices, systems, and subsystems; optics and optical hardware; opto-mechanical subassemblies and subsystems; and advanced manufacturing systems. It also offers automated systems for various applications in the manufacture of solar panels, and communications and electronic devices, including microwave, optical, radio frequency, and multi-chip modules. The Lasers division provides laser and laser-based system, such as ultrafast lasers and systems, diode-pumped solid state Q-switched lasers, diode-p umped solid state continuous wave (CW) and quasi-CW lasers, pulsed Nd:YAG and tunable lasers, and gas lasers. The Ophir division offers optics, photonics instruments, and three-dimensional non-contact measurement equipment and sensors. It also provides laser instrumentation, including laser power and energy meters, and laser beam profilers. This division serves the scientific research, microelectronics, aerospace, defense/security, life and health sciences, and industrial markets. The company offers its products under the ILX Lightwave, New Focus, Newport, Ophir, Optimet, Oriel Instruments, Richardson Gratings, Spiricon, and Spectra-Physics names. It sells its products to original equipment manufacturers and end-user customers through direct sales organizations, a network of independent distributors, and sales representatives, as well as through product catalogs and Web sites. Newport Corporation was founded in 1938 and is headquartered in Irvine, California.

Advisors' Opinion:

• [By Brian Stoffel]

  Rofin-Sinar (NASDAQ: RSTI  ) , Coherent (NASDAQ: COHR  ) , Newport (NASDAQ: NEWP  ) , and JDS Uniphase (NASDAQ: JDSU  ) all offer fiber-optic lasers as well.

• [By Evan Niu, CFA]

  What: Shares of Newport (NASDAQ: NEWP  ) got crushed today, down by as much as 12% after the company reported earnings that fell short of expectations.

Top 10 Diversified Bank Stocks To Watch For 2014: Ishares Xinhua China 25 (FXI)

iShares FTSE/Xinhua China 25 Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the FTSE/Xinhua China 25 Index (the Index). The Index is designed to represent the performance of the largest companies in the China equity market that are available to international investors. The Index consists of Class H and Red Chip shares of 25 of the largest and most liquid Chinese companies. Securities in the Index are weighted based on the total market value of their shares. Each security in the Index is a constituent of the FTSE All-World Index. All of the securities in the Index trade on the Hong Kong Stock Exchange.

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�� investment advisor is Barclays Global Fund Advisors.

Advisors' Opinion:

• [By GuruFocus]

  With the Chinese market at its historical low valuation, it is worthwhile to look into high-quality Chinese companies that are traded at low valuations. One way to play it is to invest in Chinese ETFs iShares FTSE China 25 Index Fund (FXI) and iShares MSCI China Index (MCHI). Both of them have China Mobile (CHL) as the largest component. China Mobile is traded at a P/E of 10.8 and yields 3.5% in dividends. It is in the portfolio of John Hussman and David Dreman.

• [By Belinda Cao]

  The iShares FTSE China 25 Index Fund (FXI), the largest Chinese exchange-traded fund in the U.S., slid 0.9 percent April 5 to $35.64 in New York, the lowest level since Oct. 10. The ETF lost 3.5 percent in the week.

• [By Richard Schmidt]

  Meanwhile, the overall rally in Chinese stocks is paying off, with more room to grow. iShares FTSE/Xinhua China (FXI), which corresponds to the FTSE China 25 index, showed great strength mid-month, with a 10% jump in a matter of days.

• [By Belinda Cao]

  The iShares China Large-Cap ETF (FXI), the largest Chinese exchange-traded fund in the U.S., climbed 0.6 percent last week to $38.43 in New York. The Standard & Poor�� 500 Index slipped 0.7 percent Sept. 20 for a weekly rally of 1.3 percent.

Top 10 Diversified Bank Stocks To Watch For 2014: Groundstar Resources Ltd (GSA)

Groundstar Resources Limited (Groundstar) is a development-stage oil and gas company. The Company is engaged in exploration, development and production opportunities in international areas of interest. Through its subsidiaries, the Company�� primary operations are related to its interests in a production sharing contract in Kurdistan (Iraq), concession agreements in Egypt and a petroleum prospecting license in Guyana. Advisors' Opinion:

• [By Damian Illia]

  The company�� revenues come from the fees charged for operating different domain names. Most domain names��fees are charged as per agreement terms with ICANN; however, fees received for operating the .gov registry are based on the terms of agreement with the U.S. General Services Administration (GSA). As of September 2013, revenues of $125.9 million came from active domain names ending with .com and .net. Even though the company has presence all over the globe, the U.S. contributes 64.8% of revenues, while Europe, the Middle East and Africa (EMEA) contribute 15.5%, Australia, China, India and other Asia Pacific countries (APAC), 15.0%, and other countries such as Canada or Latin American countries, contribute 4.7%. Competition is increasing, especially with Latin script ccTLD registries and IDN ccTLD registries, as well as with other name service providers such as Neustar Inc. (NSR) or ARI Registry Services, and search engine providers such as Google Inc. (GOOG) Microsoft, Corp. (MSFT).