Flickr photo: mikebaird

Slowly, but surely, the number of cautiously positive reports about stocks poised for rebound are showing up more frequently in our RSS feed inboxes.  

While the unemployment rates are still too high, the number of mortgage restructures progressing far too slowly, and big banks still cutting out loans to small businesses (both in the U.S. and overseas), the stock market is taking some steps toward growth.

This week, Alan Brochstein shared his analysis of large cap stocks that appear to be on the edge of taking off. It is a diverse list of companies including Pepsi (PEP), Magellan Health Services (MGLN) and Alberto Culver (ACV).  The more interesting possibilities included Watson Wyatt (WW) and DeVry (DV).

But take note that the interest is not necessarily for the individual company numbers. Instead, the interest is in the industries as a representative whole and how they will continue to expand in the coming year(s).

Contract Employees

Watson Wyatt (WW) represents a pinnacle of consulting and one that dovetails nicely with all this talk about “a jobless recovery”.

Why pay for a full time employee when a well-experienced contract consultant is readily available? No hiring paperwork, no worry about the employee moving on to a better job when the economy (finally) opens up. Best of all, it keeps the bottom line lean and mean for Wall Street with no Social Security, benefits or unemployment insurance payouts to report.  

I believe the trend will push more toward the idea of retaining a skeleton crew to handle daily tasks while hiring a contractor who can immediately jump in when big projects come up.

Watson Wyatt (WW) is spot on to move, but don’t forget to keep an eye on the trickle down to those smaller cap companies like Kforce (KFRC) and Resources Connection (RCN).

Better Educational Options

Typically, a rise in unemployment causes people to re-think their career options. Unfortunately, a return to school means running up against a wall of skyrocketing costs from traditional four-year colleges.

Enter the non-traditional options that offer classroom training along with the option of distance learning for those requiring the flexibility. Local community colleges, DeVry (DV), ITT Educational Services (ESI) and other online providers have finally gained some respect in the past few years.

These institutions are set to move further ahead as more mid-career professionals seek the immediate focus of certification programs without the hassle of traditional college fluff classes.

And don’t be too quick to look down on ITT Educational Services (ESI).

The company offers training  in a number of practical hands-on fields including, electronics,  web development, drafting and design, criminal justice, business and health sciences. And practically speaking, most companies still prefer paying a skilled expert to keep aging equipment going, versus purchasing expensive, brand new tools. At least they will for the next year or so.  

Finally, while it’s nice to see online educational options finally come into their own, don’t forget about a company that helps make it all possible.

Blackboard, Inc. (BBBB) provides the online learning platform technology to over 5,000 institutions. Recently, it even added apps for the ever-present Blackberry carriers while also partnering with Microsoft’s web browsers.

It may be nice to invest in the overall educational institutions but having shares in the company that makes the online learning platforms possible, could also be a smart move.