5-Star Stocks on the Upswing

Recs

7

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

Allis-Chalmers Energy, Inc. (NYSE: ALY)

653 of 669

j2 Global Communications, Inc. (Nasdaq: JCOM)

390 of 408

MSC Industrial Direct Co., Inc. (NYSE: MSM)

446 of 457

Baldor Electric Company (NYSE: BEZ)

210 of 218

Duke Energy Corp (NYSE: DUK)

1607 of 1679

Jack Henry & Associates, Inc. (Nasdaq: JKHY)

158 of 165

Columbus McKinnon Corp. (Nasdaq: CMCO)

133 of 139

Data from Motley Fool CAPS, May 6, 2009.

Come join us on CAPS, absolutely free, to learn more about these and countless other interesting stock ideas.

“The Next Great Investment”… That’s how a top global investor describes India’s potential. On Nov. 28, The Motley Fool’s Tim Hanson returns to India to prove it. Follow along in real time and get his TOP pick first (Hanson returned from China in July with a stock that’s up 169%!). Enter email below.

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

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: 893066, ~/Articles/ArticleHandler.aspx, 11/24/2009 6:54:59 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
Why Investors Should Be Excited for a Bank Breakup

Related Tickers

11/23/2009 4:00 PM
CMCO $16.54 Up +0.44 +2.73%
Columbus McKinnon… CAPS Rating: ***
JCOM $21.05 Up +0.65 +3.19%
j2 Global Communic… CAPS Rating: ****
JKHY $23.72 Up +0.41 +1.76%
Jack Henry & Assoc… CAPS Rating: *****
BEZ $26.76 Up +0.20 +0.75%
Baldor Electric Co… CAPS Rating: ****
MSM $46.80 Up +0.90 +1.96%
MSC Industrial Dir… CAPS Rating: *****
DUK $16.46 Up +0.24 +1.48%
Duke Energy Corp CAPS Rating: ****
ALY $3.52 Up +0.06 +1.73%
Allis-Chalmers Ene… CAPS Rating: *****

Community: Investing Wiki

Term Of The Hour

Creative destruction: Creative destruction is the theory that suggest economies are strengthened by new companies that destroy or diminish existing companies.

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