What's Wrong With These Stocks?

Recs

3

Inexperienced investors can easily be led astray from prudent investment decisions. Often, the investor may not understand the difference between a great company and a lousy stock, and at other times, the problem comes down to simple greed and stupidity.

With that in mind, we'll use the aggregated intelligence of the 105,000-plus investors participating in Motley Fool CAPS to find stocks that CAPS' All-Star players (those ranked in the top 20%) loathe but the rest of the community loves. This discrepancy can be a good sign that something might be wrong at the company, and that further research is in order.

Here are five such stocks:

Company

% All-Star Bulls

% Non-All-Star Bulls

CAPS Rating (out of 5)

Research

Meritage Homes (NYSE: MTH)

38.3%

81.6%

*

MTH

DR Horton (NYSE: DHI)

20.7%

59.9%

*

DHI

MDC Holdings (NYSE: MDC)

46.3%

83.5%

**

MDC

Fifth Third Bancorp (Nasdaq: FITB)

24.2%

64.2%

*

FITB

Friedman Billings Ramsey (NYSE: FBR)

21.6%

79.3%

*

FBR

Source: Motley Fool CAPS, as of May 26.

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Disclosure is important to us here at The Motley Fool. The stocks mentioned in this article received their CAPS star ratings from participants in The Motley Fool's CAPS service. No individual person selected the stocks in this article, so there is no author to disclose an interest in them. Since this article was automatically generated by identifying the stocks rated by the CAPS community and by buyers in today's market, it is possible that Motley Fool personnel (and even The Motley Fool itself, through our Million Dollar Portfolio), have positions in these stocks. We thought you'd like to know that. You can learn more about The Motley Fool's disclosure policy.

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Related Tickers

D.R. Horton, Inc.

CAPS Rating 1/5 Stars

$8.50

-0.19 (-2.19%)

Outperform513

Underperform654

Rate This Stock