Individual stocks can surge 10%, 25%, or even higher in a short period of time. And they can fall just as far, just as quickly.
For example, things were just starting to warm up for miniature display maker Microvision
Big drops in share price can sometimes signal material defects or new risks. But at other times, they're simply pullbacks along with the larger pessimism facing the market today. Fortunately, we have Motley Fool CAPS, a great resource to help us understand the larger picture behind big price drops.
Is the sky falling?
CAPS contains more than just the crowd's opinions. Its best-performing members' votes count more in shaping each company's rating than do the picks of their poorer-performing peers. That way, investors can intelligently use the collective wisdom of more than 145,000 CAPS members to make better decisions.
We'll use CAPS' handy stock screening tool to quickly zero in on companies that have been slashed by at least 20% in the last four weeks, and which have a market cap greater than $100 million and a beta of less than 3. If you want to run this screen for yourself, please do -- just keep in mind that the results will update with the market.
Company |
CAPS Rating
|
4-Week |
---|---|---|
True Religion Apparel |
** |
(27.9%) |
Cedar Fair |
** |
(23.2%) |
FreightCar America |
**** |
(21%) |
Source: Motley Fool CAPS. Price return Oct. 30 through Nov. 24.
True Religion
While some clothing retailers such as Buckle have been tearing through the recession, and others like Abercrombie & Fitch
Cedar Fair
It hasn't been all fun and games for Cedar Fair lately -- investors hammered shares after the amusement-park operator announced poor quarterly results and said it expects to suspend its dividend next year. The company has seen less business in the weak economy, similar to Disney’s
FreightCar America
With no new orders for railcars coming in the third quarter, FreightCar America found itself in a tough situation. The company, which makes coal-carrying railcars for Warren Buffett’s new elephant -- Burlington Northern Santa Fe
Ultimately, whether or not you believe a fall in any stock is warranted, your own research is more important than collective opinions. CAPS can help you quickly focus your due diligence, and even point out potential pitfalls you may not have seen.
Add your take on these or any of the 5,300 stocks that 145,000-plus members have covered in Motley Fool CAPS. It's totally free to be a part of the community, and the payback is more than worth it.