5-Star Stocks on the Upswing

By Motley Fool Staff | More Articles
February 10, 2009 | Comments (1)

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 125,000 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
Nucor Corp (NYSE: NUE )	1555 of 1618
Total SA. (ADR) (NYSE: TOT )	602 of 622
Cal Dive International, Inc. (NYSE: DVR )	395 of 406
Copart, Inc. (Nasdaq: CPRT )	1469 of 1507
The9 Limited (ADR) (Nasdaq: NCTY )	975 of 1003

Data from Motley Fool CAPS, Feb. 10, 2009.

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 Motley Fool Pro, Million Dollar Portfolio, 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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Report this Comment On February 18, 2009, at 12:13 PM, Jeosphat wrote:

I am 74 years old and have always enjoyed your articles. I have some stock in the market and am planning to stay the course until it recovers. I also have an IRA which consists of 65 % bonds. I am unable to buy any stocks at these bargains prices because my wife is uneasy about the market situation right now. I have followed your advice kept my portfolio diversified by keeping money in money
market, CD's, savings bonds, and a savings account. Keep up the good work and don't give up.

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