10 Stocks to Shake the Market

Recs

7

Disney Buys Marvel!

...And David Gardner called it. He's up 1,334%! See what David's recommending that you buy NEXT!

Click here now to find out!

In music, they're called one-hit wonders, artists that belt out a memorable tune but are never able to regain the magic of that 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've seen similar one-hit wonders in stocks, too, such as Pets.com or drkoop.com. These companies burst onto the scene -- many during the tech-bubble heyday -- and never to live up to the promise they held.

Nostalgia is fun, but "10 Stocks to Shake the Market" is all about avoiding stocks that can't repeat their success. We want to find 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 upward over the past month. We'll then pair that information with the ratings from our Motley Fool CAPS community. High ratings from our CAPS members suggest an optimism that those stocks will continue to move upward and outperform the market.

In the 20 months since we 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.

This week's contenders

Stock

30-Day % Change

CAPS Rating

AECOM Technology (NYSE: ACM)

80.69%

****

Aluminum Corp of China (NYSE: ACH)

46.62%

****

AMAG Pharmaceuticals

42.57%

**

American Axle & Manufacturing (NYSE: AXL)

38.60%

*

Aurizon Mines (AMEX: AZK)

80.67%

***

Ford (NYSE: F)

67.33%

**

Hill International

64.41%

****

Huaneng Power (NYSE: HNP)

54.79%

*****

Plug Power

43.68%

*

Tanzanian Royalty Exploration

39.72%

**

Half of these stocks carrying a three-star-or-better rating. Let's see why the CAPS community thinks even some of their lesser lights might outperform the market.

Ford
While much of the iconic automaker's gains came yesterday, as it became apparent that Congress and the White House were nearing agreement on a bailout plan for Detroit, the notion has been building for some time that Ford is just not as sickly as its domestic rivals. Indeed, Ford has said that it doesn't need any short-term bridge loans, like General Motors (NYSE: GM) and Chrysler are seeking. It's simply hoping for a line of credit to draw down on in the event that either (or both) of its Detroit brethren takes a dirt nap.

Ford's strength relative to its U.S. rivals has attracted CAPS member jason867, who figures the automaker has reached an inflection point:

 

Financially speaking, they're in [better] health than the other two. They're ahead in producing fuel efficent cars. Lowered fuel prices in the short term will likely boost truck sales. Eventually we'll be coming out of this recession.

Basically, they've been beaten down to the brink of death, and seemingly survived. They have nowhere to go but up.

AECOM Technology
President-elect Obama has promised a huge push to rebuild the country's infrastructure as a means for jumpstarting the economy. CAPS member Hoping2Retire thinks architecture and engineering firms like AECOM Technology could benefit most:

There will be significant pressure for new infrastructure project investments in US and Europe to reduce unemployment in the next several years. Additionally Asia will continue its massive investments in this area and, accordingly, I architecture and engineering firms should do well.

Shake, rattle, and roll
It pays to start your own research on these market-shaking companies 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.

Huaneng Power is a Motley Fool Income Investor and Rule Breakers selection. Try any of our Foolish newsletter services free for 30 days.

Fool contributor Rich Duprey has no financial position in any of the stocks mentioned in this article. You can see his holdings. The Motley Fool has a disclosure policy.

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 790826, ~/Articles/ArticleHandler.aspx, 11/9/2009 12:08:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Which Companies Can Buy It Like Buffett?

Related Tickers

11/6/2009 4:02 PM
HNP $27.09 Up +0.09 +0.33%
Huaneng Power Inte… CAPS Rating: *****
ACH $28.31 Up +0.06 +0.21%
Aluminum Corp. of… CAPS Rating: *****
F $7.75 Up +0.30 +4.03%
Ford Motor Company CAPS Rating: **
AZK $4.59 Down -0.01 -0.22%
Aurizon Mines Ltd.… CAPS Rating: **
GM $0.75 Down +0.00 +0.00%
General Motors Cor… CAPS Rating: *
AXL $7.00 Up +0.11 +1.60%
American Axle & Ma… CAPS Rating: *
ACM $25.27 Down -0.63 -2.43%
AECOM Technology C… CAPS Rating: ****

Community: Investing Wiki

Term Of The Hour

Poop and scoop: Poop and scoop is a form of illegal stock manipulation, where a scammer tries to drive down the price of stock through publishing and distributing unsolicited misleading advertising materials so that the scammer can buy the stock at a lower price.

Want to learn more or edit this definition?
Click here to read more!