The CAPS Screen: 5 Stocks on a Roll

3 Recommendations

Finding the next big stock is both satisfying and profitable. Like Nirvana for those early on the grunge scene, or Modest Mouse in my case, it's even more rewarding if you can discover greatness before everyone else.

With that in mind, I used our new CAPS screening tool to find stocks with growing bullish sentiment. Following a screen similar to this one last year would have turned up Excel Maritime (NYSE: EXM), netting you a 168% gain. Specifically, I looked for stocks whose CAPS ratings have risen in the last two months to four or five stars (out of five) from one, two, or three stars.

They also have:

  • Market caps greater than $100 million.
  • At least 200 active CAPS picks                                                                                             

Company

Share Price

Sector

Market Cap

Coach   (NYSE: COH)

$21.55

Consumer Goods

$7.3 billion

E-Trade Financial   (Nasdaq: ETFC)

$3.05

Financials

$1.6 billion

H. J. Heinz (NYSE: HNZ)

$50.73

Consumer Goods

$15.8 billion

Kellogg (NYSE: K)

$57.21

Consumer Goods

$21.7 billion

Pfizer (NYSE: PFE)

$19.00

Health Care

$128.1 billion

Data from Motley Fool CAPS and Yahoo! Finance as of Oct. 3.

Of course, screens are merely a first step in the stock selection process. After all, there's no long-term use in picking the next Chumbawamba. So come and join our 115,000-person-strong (and growing) Motley Fool CAPS community in finding the best up-and-comers.

On Oct. 7, 2008, Fool Co-Founder David Gardner and his Motley Fool Pro team will invest $1 million in a portfolio designed to help you make money in any market. In the coming weeks, the team, relying heavily on proprietary CAPS "community intelligence" data, will establish long and short positions in a broad range of securities, including common stocks, publicly traded put and call options, and exchange-traded funds (ETFs). To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

What do the unfolding financial crisis and ongoing market volatility mean for your money? The Fool's here with answers. Get the best of our daily commentary and analysis in your inbox simply by entering your email address in the box below.

Ilan Moscovitz doesn't own any of the companies mentioned in this article, though he is an avid baker. Pfizer and HJ Heinz are Motley Fool Income Investor selections. Pfizer is also an  Inside Value pick. Coach is a Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days. The Fool's disclosure policy is (figuratively) on fire.

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Coach, Inc.

COH Up! $14.74 +1.29 (+9.59%) 4:02 PM
CAPS Rating:
1813 Outperforms
129 Underperforms
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