10 Stocks to Shake the Market

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In music they're called one-hit wonders, singers who belt out tunes but are never able to regain the magic of their big hit song. Think Norman Greenbaum's "Spirit in the Sky" or Brownsville Station's "Smokin' in the Boys Room." Monster hits never to be repeated.

We have seen similar one-hit wonders in stocks, too, like Pets.com or drkoop.com. Companies that burst onto the scene -- many during the tech bubble heyday -- never to live up to the promise they held.

Whole lotta shakin' going on
While nostalgia's fun, "10 Stocks to Shake the Market" isn't about finding stocks that can't repeat their success: It's about looking at those that have made big moves and are likely to continue doing so.

To do that, we're looking at 10 stocks that made some of the biggest moves up over the past month. We'll then pair that with the ratings issued by our Motley Fool CAPS community. A higher rating means that the members who rate the stock believe it will continue to move higher in the future and outperform the market.

In the first 20 months since we first began tracking the collective intelligence at CAPS in late 2006, the data shows that newly minted five-star stocks offer the best opportunities for investors, while the lowest-rated companies fared the worst. Four-star stocks outperformed the market by seven percentage points, and five-star stocks -- top honors in CAPS -- did even better.

Stock

30-Day % Change

CAPS Rating

US Gold

78.00%

****

AutoNation (NYSE: AN)

70.65%

**

Omrix Biopharmaceuticals

68.07%

*****

Kinross Gold (NYSE: KGC)

62.09%

****

El Dorado Gold (AMEX: EGO)

60.75%

****

AECOM Technology

60.17%

****

OfficeMax (NYSE: OMX)

54.46%

*

Goldcorp (NYSE: GG)

50.57%

***

Granite Construction (NYSE: GVA)

37.74%

****

URS (NYSE: URS)

36.52%

****

With most of the stocks carrying a three stars or better rating, we're going to zero in on some of these that CAPS members think will continue to outperform the market.

Gold!
Looking over the list, it's apparent that the most precious of commodities -- gold -- enjoyed a big run-up over the past few weeks, undoubtedly egged on by the continuing crisis in the financial markets. CAPS member paintjockey finds Kinross Gold a natural complement to a retirement plan.

Hedge against deflation/inflation of dollar. Been on my MSN portfolio for six months. Has its up/down but good performer long term. ... Also metal itself to IRA/ retirement plan

Top-rated CAPS All-Star TheHuney figures that with governments around the globe spending like there's no bottom to the wealth they're creating, Goldcorp ought to be a beneficiary of any inflationary pressures that causes.

With various national governments (including the US) spending like there's no tomorrow coupled with the prospects of a continued recessionary environment similar to the mid-70s, gold and silver would seem to be the best safe haven investments right now. I expect the price of both metals to increase over the next few years.

OfficeMax
One of the triumvirate of office supply chains, OfficeMax has teamed up with Europe-based Lyreco to give it greater international exposure. Lyreco was the company that was used by Corporate Express in an effort to thwart -- ultimately unsuccessfully -- its own acquisition by Staples (Nasdaq: SPLS). It's that new outlook that has CAPS member lavatek seeing OfficeMax gaining market share.

stock is very under priced. New strategies along with international growth with Lyreco and domestic partnership with Safeway stores will show dramatic growth and profits over the next 5 years. [Office Depot] will inevitably go out of business before end of 2009 giving more market share to [Office Max].

Shake, rattle, and roll
With these shaking the market this past month, it pays to start your own research on them at Motley Fool CAPS. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made -- all from a stock's CAPS page.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

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

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Related Tickers

11/10/2009 11:23 AM
GVA $30.43 Down -0.15 -0.49%
Granite Constructi… CAPS Rating: ****
GG $43.54 Down -0.46 -1.05%
Goldcorp, Inc. (US… CAPS Rating: ***
KGC $19.12 Down -0.29 -1.49%
Kinross Gold Corp… CAPS Rating: ***
AN $18.54 Down -0.57 -2.98%
AutoNation, Inc. CAPS Rating: **
OMX $12.02 Down -0.39 -3.14%
OfficeMax, Inc. CAPS Rating: *
EGO $13.16 Up +0.04 +0.30%
Eldorado Gold Corp… CAPS Rating: ***
SPLS $22.38 Down -0.12 -0.53%
Staples, Inc. CAPS Rating: ***

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