5-Star Stocks on the Upswing

By Motley Fool Staff | More Articles
November 14, 2008 | Comments (2)

Sadly, there's no such thing as an ultimate buy signal when it comes to investing in stocks. Identifying companies with the wind at their back takes time, patience, and a good dose of due diligence.

There is, however, an easy way to increase your odds of finding the stocks that will beat the market. At Motley Fool CAPS, the Fool's investing community of more than 120,000 members, we've found that five-star stocks, as a group, substantially outperform the broader market -- to the tune of 12 percentage points on an annualized basis from November 2006 to July 2008.

In order to fully capture the upside potential of those five-star stocks, it makes sense to identify them just as soon as they achieve five-star status. Fortunately, our CAPS screener now makes it possible to do this. Below, for example, is a list of companies that have been upgraded to five-star status from four stars just yesterday. These stock ideas are only a starting point, of course. Be sure to join us on CAPS to dig in even further.

Company	All-Stars Saying Outperform
Omniture, Inc. (Nasdaq: OMTR )	1378 of 1419
Suntech Power Holdings Co., Ltd. (ADR) (NYSE: STP )	3950 of 4070
iShares MSCI South Africa Index (ETF) (NYSE: EZA )	225 of 231
Exelixis, Inc. (Nasdaq: EXEL )	2164 of 2244
Occidental Petroleum Corp (NYSE: OXY )	1141 of 1172
Ormat Technologies, Inc. (NYSE: ORA )	351 of 366

Data from Motley Fool CAPS, Nov. 14, 2008.

Come join us on CAPS, absolutely free, to learn more about these and countless other interesting stock ideas.

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Disclosure is important to us here at The Motley Fool. 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, it is possible that Motley Fool personnel (and even The Motley Fool itself, through our Million Dollar Portfolio, Motley Fool PRO, and Ready Made Millionaire services), have positions in these stocks. We thought you'd like to know that. You can learn more about The Motley Fool’s disclosure policy here.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On November 20, 2008, at 7:32 AM, jhatlarge wrote:

The Motley Fool has been leading their followers to financial demise as of late. The MDP their star portfolio is down a whopping 46% with some positions down 80% + - A shell shock for those who paid $999 for the premium service. The Fool have been touting the Buffet way for years to gain investor confidence in subscribing to their service, the MF's dire performance is presently tarnishing the Buffet name and discrediting his stellar strategy with rotten picks. Would Mr. Buffet be a buyer of the MDP picks? That is the million dollar question, if so, at what price? Certainly not at the price touted by the Motley Fool to its MDP subscribers. Another question, is how much of the Fools marketing is pure hype and that of an irresponsible service to average investors who are puting their confidence and hard earned money in the MF services hoping for a safer way to play the markets. Beware! MDP is not as rosy as its made out to be. For many Foolish investors the $999 subscription was followed by sharp pain, one that is far from having instant relief.
The MF is irresponsible and misleading.
Report this Comment On November 20, 2008, at 8:16 PM, KitsapMan wrote:

Ummm, in case you haven't noticed, *nothing* is on the upswing right now, unless you're talking about from their current lows. If that's the case, then perhaps eveything is on the upswing. But for those of us who currently own any of these stocks, it's been a bad news ride down. I, for example, an down 73% in EXEL. I suspect I'll have to wait a long time for this to look like an upswing for me.

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