5 All-Star Stocks

Win or lose, we all have opinions about which stocks are rockets and which are dogs. If we could invest like Peter Lynch or Mohnish Pabrai, we'd probably have a lot more companies in our win column than on the loss side of the ledger. Warren Buffett began buying railroads last year, and just about any company that ran on tracks came into play. Should we follow along?

In other words, when top-notch investors back a stock, you might want to give it more consideration. Over on the investor collaboration site Motley Fool CAPS, we can do just that. On CAPS, players who've earned a rating of 80 or better by consistently outperforming their peers are dubbed All-Stars. Sometimes, these ace investors will back a stock that others think is a dog. Considering the All-Stars' track records, we ought to look closely at their selections.

Here are five companies that have been marked down by some investors but enjoy unanimous All-Star backing:

Of course, this is not a list of stocks to buy and sell; instead, it should serve as a starting point for your own research and analysis.

Diversified profit centers
When an industrial bellwether like General Electric (NYSE: GE) reports earnings that suggest the economy is causing even diversified companies to trip and fall, it makes the ones that are able to clear the hurdles stand out that much more. Thus, when diversified industrial manufacturer Eaton managed to build momentum and enjoy a 6% increase in profits on a 12% rise in revenues -- while also bumping up full-year expectations by a nickel -- it's easy to see why it enjoys as much investor support as it does.

A large part of the reason for Eaton's success, apart from its diversification, has been its international exposure, where almost half of its assets are located. Eaton's revenues and operating profits are determined by the geographic location of its selling plants. While autos and trucking have been predictably slow for the manufacturer, the strength of its aerospace and agricultural equipment makes up for the lag. Moreover, with its hybrid electric systems getting wider exposure, investors like KipLargo see continued growth on the horizon.

They make hybrid engines, and [that is and is] going to be big biz. They also have their hands in many other industries. I understand the consumer is going away, but I do feel what gets made is going to be made with [Eaton's] products. I'm not crazy about the debt, but this is a growth company in my opinion and [debt] comes with such a stock.

Others, like Chicken114, think that Eaton has the right combination of management, products, fundamentals, and long-range thinking that will benefit investors most over the years.

diversified. excellent long range thinking mgt. low p/e ratio. high demand for their products. international reputation. sustainable growing earnings. let her rip.

Even if its own customers like General Motors (NYSE: GM) are facing stiff headwinds, that hasn't stopped Eaton from being seen as a top supplier, as EMG114 notes:

It was recognized by General Motors as a 2007 supplier of the year and it's looking to raise around $1.4B in stock offering. It's a good company overall, engaged in industries that are going to produce earnings for the long-term. So good investment overall ... very recommended!

An all-star act
Although a few CAPS investors have bet against the house here, we haven't yet heard from you. Why not head to Motley Fool CAPS now and let us know what you think about these and your other favorite investments. It's completely free, and along with the other 100,000 investors there, you may help uncover the next All-Star stock.

The 30-day, risk-free trial subscription to any of the Fool's investment services is a class act that's hard to beat.

Fool contributor Rich Duprey does not have a financial position in any stocks mentioned in this article. You can see his holdings. The Motley Fool has a disclosure policy.