5-Star Stocks on the Upswing

By Motley Fool Staff
March 16, 2009 | Comments (3)

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14

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

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 130,000 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

Calpine Corp. (NYSE: CPN)

184 of 191

VanceInfo Tech (NYSE: VIT)

141 of 146

ReneSola LTD (NYSE: SOL)

833 of 853

Arrow Electronics, Inc. (NYSE: ARW)

105 of 112

China Yuchai International Limited (NYSE: CYD)

238 of 253

Data from Motley Fool CAPS, March 16, 2009.

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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.

Comments from our Foolish Readers

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  • Report this Comment On March 17, 2009, at 10:54 AM, skandog7 wrote:

    spare me the positive outlook on CPN. the investor relations people @ calpine boast that the CEO is very "hands-on" because he "sits on the trading desk all day". kinda reminds me of other morons like jeff skilling (enron) and ace greenberg (bear stearns). the company will ultimately choke on it's $10 billion in debt and harbinger can't find an exit strategy.

  • Report this Comment On March 17, 2009, at 11:08 AM, skandog7 wrote:

    ...oh....and if my math is correct, the CEO, Mr. Fusco, has locked in some very impressive losses for the next year/2 with his hedging strategies....barring an explosion in natural gas prices. here's a surprise....he's an ex goldman sachs guy.

  • Report this Comment On March 17, 2009, at 11:19 AM, skandog7 wrote:

    lastly...isn't that typical of an ex goldman sachs dude? if he gambles correctly in the energy markets, he'll make a fortune...if he's wrong, the banks and shareholders get hosed, and he takes another job.

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Related Tickers

11/24/2009 2:00 PM
VIT $17.30 Down -0.34 -1.93%
VanceInfo Tech CAPS Rating: ****
CYD $15.10 Down -0.49 -3.14%
China Yuchai Inter… CAPS Rating: ***
HNP $25.65 Down -0.52 -1.99%
Huaneng Power Inte… CAPS Rating: *****
CPN $11.05 Down -0.01 -0.09%
Calpine Corp. CAPS Rating: ***
SOL $3.99 Down -0.11 -2.66%
RENESOLA LTD CAPS Rating: ****
PEGA $29.99 Down -0.83 -2.69%
Pegasystems, Inc. CAPS Rating: ***
ARW $26.90 Down -0.06 -0.22%
Arrow Electronics,… CAPS Rating: ***

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