Top 5 Services Stocks To Buy For 2014

The Department of Defense awarded McLean, Va.-based Exelis (NYSE: XLS  ) a maximum $127.2 million cost-plus-fixed-fee contract on Friday.

The Pentagon's contract announcement was short on details, but did confirm that the funds will be used for the operation, maintenance, and defense of Army communications systems in southwest and central Asia, including Kuwait, Afghanistan, Iraq, and Qatar.

The contract appears to involve primarily Exelis' Information and Technical Services division, which, while the larger of the company's two main business units, is the less profitable, generating $3 billion in revenues last year but producing operating profit margins of only 7%. (Exelis' C4ISR division, in contrast, while generating lesser revenues, earns operating profit margins more than twice those of the ITS unit.)

Profitability notwithstanding, the contract should help to stem analysts' expected decline in Exelis' profitability over the next five years: $127.2 million will be enough revenue to account for more than 2.4% of the company's annual revenues -- all from a single contract.

Hot Penny Stocks To Invest In Right Now: Professional Diversity Network Inc (IPDN)

Professional Diversity Network, Inc, formerly Professional Diversity Network, LLC, incorporated on October 23, 2003, develops and operates online networks serving diverse professionals in the United States. As of February 28, 2013, the Company focused on Hispanic-American and African-American professionals and launched additional Websites to other diverse segments, including women, Asian-American, lesbian, gay, bisexual and transgender (LGBT), differently-abled and military professionals. As of February 28, 2013, it had two million members and more than 3,000 companies and organizations, including 60% of the companies, have listed job postings on its Websites. The Company�� major assets include iHispano.com, which has over 1.2 million members in its network and AMightyRiver.com, which has over 600,000 members in its network. As of September 30, 2012, iHispano.com had over 3.7 million visitors and over 4.3 million visits, while AMightyRiver.com had over one million visitors and over 1.2 million visits. In June 2013, Professional Diversity Network announced that it has acquired Resunate Recruiting Technology Platform. In September 2013, Professional Diversity Network Inc acquired the assets of Personnel Strategies Inc.

The Company launched additional online professional networking Websites that serve other diverse communities, including women (WomensCareerChannel.com), Asian Americans (ACareers.net), LGBT (OutProNet.com), enlisted and veteran military personnel (Military2Career.com) and differently-abled (ProAble.net) professionals. In the nine months ended September 30, 2012, this Website had over 700,000 visits and over 600,000 visitors. As of September 30, 2012, WomensCareerChannel.com had over 75,000 members. On November 12, 2012, the Company entered into a diversity recruitment partnership agreement with LinkedIn, which became effective on January 1, 2013. Pursuant to its agreement, LinkedIn may resell to its customer diversity-based job postings and recruitment advertising on the Co! mpany�� Websites.

Solutions for Members

The Company offers a variety online professional networking and career placement solutions. The solutions include talent recruitment communities, job postings and company information search capability, identity and contact management, networking tools, mentoring program, career tools and skill-based content , and E-newsletter and national event information.

Solutions for Employers and Recruiters

The Company posts job listings of employers through its strategic partnership with LinkedIn. These employers include large corporations, small and medium-sized businesses, educational institutions, government agencies, non-profit organizations and other enterprises. The hiring solutions the Company offers include talent recruitment communities, single and multiple job postings, resume database, hiring campaign marketing and advertising, research on products and services, and employment recruitment intelligence compliance assistance (ERICA).

Solutions for Advertisers

The Company�� platform also enables advertisers to target and reach large audiences of diverse professionals and connect them to relevant services. It assists advertisers in building campaigns and provides additional creative services. The Company�� branding and marketing platform employs email marketing, social media, search engines, traffic aggregators and strategic partnerships.

The Company competes with LinkedIn, Facebook, Google, Microsoft and Twitter, Monster Worldwide, Taleo, Career Builder, Black Planet and MiGente.

Advisors' Opinion:

• [By Wallace Witkowski]

  Shares of Professional Diversity Network LLC (IPDN) �dropped 26% to $3.50 on light volume after hours Friday. The company said in an SEC filing that LinkedIn Corp. (LNKD) �will no longer resell the company�� postings or recruitment advertising on LinkedIn after March 30.

Top 5 Services Stocks To Buy For 2014: Five Star Quality Care Inc (FVE)

Five Star Quality Care, Inc. (Five Star), incorporated in April 2000, operates senior living communities, including independent living communities, assisted living communities and skilled nursing facilities (SNFs). As of December 31, 2011, the Company operated 245 senior living communities located in 30 states containing 27,159 living units, including 207 primarily independent and assisted living communities with 23,736 living units and 38 SNFs with 3,423 living units. The Company owns and operates 31 communities (2,954 living units), lease and operate 191 communities (20,811 living units), and manage 23 communities (3,394 living units). Its 245 senior living communities included 8,699 independent living apartments, 13,069 assisted living suites and 5,391 skilled nursing units. During the year ended December 31, 2011, the Company discontinued its operations on two SNFs owned and operated by it containing 271 living units and one assisted living community leased from Senior Housing Properties Trust (SNH) and operated by it containing 103 living units. In September 2012, it sold its pharmacy business to Omnicare, Inc. Effective December 31, 2013, Five Star transferred the operations of two rehabilitation hospitals, which included New England Rehabilitation Hospital located in Woburn and Braintree Rehabilitation Hospital located in Braintree, to entities affiliated with Reliant Hospital Partners, LLC.

As of December 31, 2011, the Company leased and operated two rehabilitation hospitals with 321 beds that provide inpatient rehabilitation services to patients at the two hospitals and at three satellite locations. In addition, it leased and operated 13 outpatient clinics affiliated with these rehabilitation hospitals. It also owns and operate five institutional pharmacies. In 2011, the Company acquired from unrelated parties seven assisted living communities containing 854 living units with one located in Arizona and the other six located in Indiana, or the Indiana Communities. It also commenc! ed leasing from SNH six senior living communities containing 724 living units with one located in each of Illinois and Florida and two located in each of North Carolina and Virginia.

Independent Living Communities

Independent living communities provide privacy to residents and require residents to be capable of independence. An independent living apartment usually bundles several services as part of a regular monthly charge. In addition, services are available from staff employees on a fee for service basis. As of December 31, 2011, its business included 8,699 independent living apartments in 75 communities that it operated or managed.

Assisted Living Communities

Assisted living communities consists of one bedroom units which include private bathrooms and kitchens. Services bundled within one charge usually include three meals per day in a central dining room, daily housekeeping, laundry, medical reminders and around the clock availability of assistance with the activities of daily living such as dressing and bathing. Professional nursing and healthcare services are usually available at the community as requested or at regularly scheduled times. As of December 31, 2011, its business included 13,069 assisted living suites in 185 communities that it operated or managed. .

Skilled Nursing Facilities

SNFs provide nursing and healthcare services similar to those available in hospitals. A purpose built SNF includes one or two beds per room with a separate bathroom in each room and shared dining facilities. SNFs are staffed by licensed nursing professionals 24 hours per day. As of December 31, 2011, its business included 5,391 skilled nursing units in 69 communities.

Rehabilitation Hospitals

Rehabilitation hospitals, which are also known as inpatient rehabilitation facilities (IRFs), provide intensive physical therapy, occupational therapy and speech language pathology services. Patients in IRFs receive a mi! nimum of ! three hours of rehabilitation services daily. IRFs also provides radiology, laboratory, telemetry, hemodialysis and orthotics/prosthetics services. Outpatient satellite clinics are often included as part of the services offered by IRFs. As of December 31, 2011, its two rehabilitation hospitals had 321 beds available for inpatient services and provided rehabilitation services at the two hospitals and three satellite locations. In addition, it operates 13 outpatient clinics affiliated with its rehabilitation hospitals where patients discharged from hospitals can continue their therapy programs and receive amputee, brain injury, neurorehabilitation, cardio-pulmonary, orthopedic, spinal cord injury and stroke rehabilitation services.

Institutional Pharmacies

Institutional pharmacies provide drugs at locations where patients with recurring pharmacy requirements are concentrated. The Company�� five institutional pharmacies are located in six leased commercial spaces and one owned commercial building containing a total of approximately 67,759 square feet plus parking areas for its employees and delivery vehicles.

Advisors' Opinion:

• [By Keith Speights]

  Falling stars
  The sky didn't fall, but it might have seemed like it this week for shareholders of Five Star Quality (NYSE: FVE  ) . The stock dropped 21% after the operator of long-term-care facilities reported quarterly earnings.

Top 5 Services Stocks To Buy For 2014: Tencent Holdings Ltd (TCEHY)

Tencent Holdings Limited is an investment holding company. The Company and its subsidiaries are principally engaged in the provision of Internet value-added services, mobile and telecommunications value-added services and online advertising services to users in the People�� Republic of China. The Company operates in four segments: Internet value-added services, Mobile and telecommunications value-added services, Online advertising, and Others. As of December 31, 2011, its subsidiaries included Tencent Cyber (Tianjin) Company Limited, Tencent Asset Management Limited, Tencent Technology (Beijing) Company Limited, Tencent Cyber (Shenzhen) Company Limited, Tencent Technology (Shanghai) Company Limited and others. Advisors' Opinion:

• [By Kevin Chen]

  In the video below, Fool contributor Kevin Chen details five reasons why SINA may be forever doomed:�

  SINA Weibo's daily active users may be exaggerated. Its registered users lag that of competitor Tencent� (NASDAQOTH: TCEHY  ) Weibo. Its penetration rate trails Tencent Weibo. Its geographic make-up isn't poised for China's economic growth. Meanwhile, Tencent Weibo is. Renren� (NYSE: RENN  ) , the "Facebook of China," and gaming portal�NetEase� (NASDAQ: NTES  ) threaten SINA Weibo's viability as a social network.�

  So before you try to profit from the growing microblogging market in China, watch the video below to learn more about the five things Wall Street overlooks when analyzing SINA.

• [By Damian Illia]

  The company has a current ratio of 11.8% which is higher than the one registered by Facebook (FB), InterXion Holding N.V. (INXN) and AOL Inc. (AOL). But for investors looking for a higher ROE, Tencent Holdings Ltd. (TCEHY) could be the option.

• [By Victoria Zhang]

  Not all social networks are created equally
  Renren,�which operates one of the most popular�social networks in the second-largest economy, has lost more than 80% of its market capitalization�since it went public. To put this in perspective, in the same period, competitor Tencent Holdings� (NASDAQOTH: TCEHY  ) �experienced massive share appreciation, as its messaging apps�Tencent QQ and WeChat�gained international users, and therefore more advertisers. The company has become the third-largest Internet company in the world, only behind Google and Facebook.

Top 5 Services Stocks To Buy For 2014: Cal-Maine Foods Inc (CALM)

Cal-Maine Foods, Inc., incorporated on September 10, 1969, is a producer and marketer of shell eggs in the United States. During the fiscal year ended June 1, 2013 (fiscal 2013), the Company sold approximately 948.5 million dozen shell eggs. Its primary business is the production, grading, packaging, marketing and distribution of shell eggs. It sells most of its shell eggs in the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States. The Company markets its shell eggs through its distribution network to a group of customers, including national and regional grocery store chains, club stores, foodservice distributors and egg product manufacturers. It sells shell eggs to a majority of the food retailers in the United States. It is also a producers and marketers of specialty shell eggs in the United States. Specialty shell eggs include cage free and organic eggs. The Company owns 100% of Benton County Foods, LLC. In March 2014, the Company acquired 50% interests of Delta Egg Farm, LLC from Sunbest Foods of Iowa, Inc., a Moark, LLC affiliate, as result Delta Egg Farm, LLC, is a wholly owned subsidiary of the Company.

The Company markets its specialty shell eggs under various brands, such as Egg-Land�� Best, Land O��Lake, Farmhouse, and 4-Grain. It also produces specialty eggs, such as Egg-Land�� Best, Land O��Lake, Farmhouse, and 4-Grain. It has exclusive license agreements to market and distribute Egg-Land�� Best specialty shell eggs in major metropolitan areas, including New York City, and a number of states in the southeast and southwest. It markets cage free eggs under its trademarked Farmhouse brand and distribute those shell eggs across the southeast and southwest regions of the United States. It markets organic, all natural, cage-free, vegetarian, and omega-3 eggs under its 4-Grain trademark. It also produces market and distributes private label specialty shell eggs to several customers. Sales of specialty shell eggs accounted for approximately ! 16.4% of its total shell egg dozen volumes during fiscal 2013.

The Company�� operations are integrated. At its facilities, it hatches chicks, grows pullets, manufactures feed, and produces and distributes shell eggs. It produces approximately 95% of its chicks in its own hatcheries. It owns breeder facilities producing 18.5 million pullet chicks per year. These pullets are distributed to 42 laying operations around the southwestern, southeastern, mid-western and mid-Atlantic regions of the United States. The facilities produce an average of 1.9 million dozen shell eggs per day and process the shell eggs through grading and packaging without handling by human hands.

Advisors' Opinion:

• [By Monica Gerson]

  Wall Street expects Cal-Maine Foods (NASDAQ: CALM) to report its Q1 earnings at $1.17 per share. Cal-Maine shares dropped 1.48% to close at $85.47 on Friday.

• [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
  
  HRL is trading at a premium to all four valuations above. The stock is trading at a 27.6% premium to its calculated fair value of $35.92. HRL 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%
  
  HRL earned one Star in this section for 2.) above. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1928 and has increased its dividend payments for 48 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 PDF for a detailed description:
  
  1. NPV MMA Diff.
  2. Years to > MMA
  
  HRL earned a Star in this section for its NPV MMA Diff. of the $984. This amount is in excess of the $500 target I look for in a stock that has increased dividends as long as HRL has. If HRL grows its dividend at 13.2% per year, it will take 7 years to equal a MMA yielding an estimated 20-year average rate of 3.68%.
  
  Memberships and Peers: HRL is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achiever