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5-Star Stocks on the Upswing

By Motley Fool Staff
June 9, 2009 | Comments (1)

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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 135,000 members, we've found that our "five-star portfolio" is up 15.31% between January 2007 and April 2009, compared to a loss of 40.6% for the S&P 500.

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
Air Transport Services (Nasdaq: ATSG)	258 of 280
Parker Hannifin Corp (NYSE: PH)	516 of 530
Wesco Financial Corp (AMEX: WSC)	161 of 172
Petroleum Development Corp (Nasdaq: PETD)	225 of 240
Federated Investors, Inc. (NYSE: FII)	165 of 174

Data from Motley Fool CAPS, June 9, 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 June 10, 2009, at 10:46 AM, jmontgomery86 wrote:

Why is ATSG on that list?
Their debt is ridiculously high compared it assets. Additionally, Shareholder Equity is only 80 million on over 1 billion in total assets and the business has not shown the ability to generate free cash flows.
Surely it will make some money in the short run as everything will make money over the coming months until the weaker businesses will either be bought out or go bankrupt, which will happen to this one.
I'm not bashing the article, just questioning the integrity of the business as it is very capital intensive that will not fund its operations through operating cash flows.

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