Tomorrow's Monster Stocks

11 Recommendations

Famed money manager Peter Lynch called them "10-baggers," stocks that climbed to 10 times the value he paid for them. They're a rare breed, but not impossible to find. Especially when you're a friend of Fools.

If you look back over the market's best stocks, you'll find companies that have risen in value over the past decade by 3,000%, 5,000%, and even 24,000%. They're not penny stocks, but viable companies with sound business prospects -- companies that are achieving phenomenal returns every year. You need to pick only one or two monster stocks to have a winning portfolio.

Stalking the monster
So where can we find tomorrow's monster stocks today? At Motley Fool CAPS, we track the opinions of more than 65,000 investors who are working every day to help collectively identify those winners. Thousands of stocks are rated by both novice and professional analysts. The opinions of the best stock pickers are weighted more heavily in determining a stock's CAPS rating of one to the maximum five stars.

Investors at CAPS are rated as well, and we call the best of them All-Stars. We've compiled a list of these top players, who, like Peter Lynch, have already found monster stocks -- companies that have doubled, tripled, or quadrupled in price. Then we've given you some of their recent picks for stocks they consider equally promising.

Player

CAPS Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating (Out of 5)

adoratium

99.97

Aluminum Corp. of China (NYSE: ACH)

242.57

Syntax-Brillian (Nasdaq: BRLC)

**

Uberchota

99.92

Excel Maritime (NYSE: EXM)

491.91

EMC (NYSE: EMC)

*****

btuff2

99.78

VASCO Data Security (Nasdaq: VDSI)

309.18

SORL Auto Parts

*****

sapvb

99.65

China Finance Online (Nasdaq: JRJC)

422.45

Financial Select Sector SPDR (AMEX: XLF)

**

Of course, this is not a list of stocks to buy -- or, for those monster stocks that the CAPS All-Stars have already found, sell. It's simply a jumping-off point for doing additional research.

A bull case for Spiders
Spiders, or SPDRs, are units of exchange-traded funds (ETFs) that hold shares of all the companies in the S&P 500. Select Sector SPDRs are unique ETF's that divide the S&P 500 into nine sectors, like finance, consumer staples, and health care. (The Motley Fool's ETF Center covers all the aspects of investing in exchange-traded funds.)

The Financial Select Sector SPDR includes diversified financial service firms ranging from investment management to commercial and investment banking. That chunk of the market has attracted quite a number of All-Star CAPS players, including Ludraman1, who thinks the time is right for this sector:

[It's] time to get [back] into financial services-especially if you are a long term investor. This ETF is mainly big financial companies and they have good international exposure.

Meanwhile, sapvb chose Financial Select because he believes that the companies underlying the SPDR are incredibly cheap right now:

The financials are so value priced that when they begin to grow no one will believe you could have bought them for a 7 or 8 pe!

A chance for scary growth
Now's your opportunity to weigh in on Financial Select Sector SPDR, EMC, or any of the other stocks these All-Stars think will achieve monster growth. Agree with their views? Think they're all wrong? Tell us on CAPS. If you've got an opinion, your voice counts just as much as everyone else's on CAPS. Let's hear whether you think these are tomorrow's monster stocks, uncovered today.

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Related Tickers

Financial Select Sector SPDR (ETF)

XLF Up! $9.68 +0.29 (+3.09%) 4:00 PM
CAPS Rating:
625 Outperforms
205 Underperforms
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