5-Star Stocks on the Upswing

Recs

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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

Allion Healthcare, Inc. (Nasdaq: ALLI)

106 of 111

Genuine Parts Company (NYSE: GPC)

234 of 245

Syntel, Inc. (Nasdaq: SYNT)

143 of 154

Parker Hannifin Corp (NYSE: PH)

504 of 518

Phillips-Van Heusen Corp (NYSE: PVH)

169 of 181

Brasil Telecom S.A. (ADR) (NYSE: BTM)

536 of 549

iShares MSCI Malaysia Index Fund (ETF) (NYSE: EWM)

336 of 349

Data from Motley Fool CAPS, May 4, 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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Related Tickers

11/20/2009 4:00 PM
ALLI $6.52 Up +0.01 +0.15%
Allion Healthcare,… CAPS Rating: *****
PVH $43.08 Up +0.08 +0.19%
Phillips-Van Heuse… CAPS Rating: ***
PH $53.98 Down -0.33 -0.61%
Parker Hannifin Co… CAPS Rating: ****
SYNT $39.63 Down -0.41 -1.02%
Syntel, Inc. CAPS Rating: ****
BTM $30.87 Down -0.60 -1.91%
Brasil Telecom S.A… CAPS Rating: *****
EWM $10.96 Up +0.06 +0.55%
iShares MSCI Malay… CAPS Rating: ****
GPC $36.40 Down +0.00 +0.00%
Genuine Parts Comp… CAPS Rating: ****

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