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10 Peter Lynch Stocks

By Motley Fool Staff | More Articles
December 10, 2009 | Comments (4)

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Peter Lynch is famous not just for his enviable track record as 13-year head of Fidelity Magellan, but also for his quirky investment strategies. The market's best stocks, according to Lynch, are small, growing companies flying below Wall Street's radar.

It makes sense, after all, to pick out the strongest companies that have the greatest chance of being overlooked, and hence, mispriced. As investors, we should all take advice from the man who not only minted fundholders a 28-bagger but actually coined the investing term "-bagger."

With that in mind, we used the CAPS screening tool to find stocks Peter Lynch might love. Below are 10 companies with no more than five CAPS-rated Wall Street analysts calling the stock.

They also have:

  • Three-year trailing earnings-per-share growth above 25%.
  • Price-to-earnings multiples below 30.
  • Market capitalizations below $10 billion.
  • At least 300 CAPS picks.
  • Four- or five-star ratings from our CAPS community.

Company

CAPS Rating
(out of 5)

Industry

Market Cap

GigaMedia (Nasdaq: GIGM  )

*****

Internet software/services

$196 million

ClickSoftware Technologies (Nasdaq: CKSW  )

****

Internet software/services

$171 million

Cal-Maine Foods (Nasdaq: CALM  )

*****

Farm products

$682 million

NorthStar Realty (NYSE: NRF  )

****

REIT - Retail

$251 million

China Natural Gas (Nasdaq: CHNG  )

*****

Gas utilities

$231 million

Universal Insurance (AMEX: UVE  )

****

Property/casualty insurance

$214 million

KV Pharmaceutical (NYSE: KV-A  )

*****

Pharmaceuticals

$131 million

AZZ

*****

Industrial electric equip.

$435 million

American Dairy

****

Dairy products

$484 million

Cellcom Israel

*****

Wireless communications

$3.1 billion

Of course, screens are merely a first step in the stock-selection process. Come and join us on Motley Fool CAPS to let the collective wisdom of our 145,000-strong CAPS community help you make your investment decisions. There's information and opinions on more than 5,300 stocks, and don't forget the screening tool to help you sort information. It's all free.

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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.

  • Report this Comment On December 11, 2009, at 9:24 AM, twelveisdead wrote:

    Can we seriously stop pumping GIGM? The company hasn't reported earnings in SIX MONTHS or even had any press release!! MF might as well tell you to jump off a cliff.

    If you have money to burn, you're better off giving it to a homeless person than investing in GIGM.

  • Report this Comment On December 12, 2009, at 6:43 PM, Fool wrote:

    Giggety gigamedia

  • Report this Comment On December 13, 2009, at 7:10 AM, chaimyl wrote:

    I bought GIGM based on Motely fool and standerd and poors recomending it so far it lost about 30 percent and some people prob lost about 50 percent but i am still holding it becuase it is a good company

  • Report this Comment On December 29, 2009, at 10:52 PM, tjbrownKSU wrote:

    You should never bu a stock "based on Motley fool and standerd and poors recommending it".... always do some own research as well.

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Related Tickers

5/25/2012 4:02 PM
KV-A $1.32 Up +0.34 +34.69%
K V Pharmaceutical… CAPS Rating: **
NRF $5.31 Up +0.04 +0.76%
NorthStar Realty F… CAPS Rating: ***
UVE $3.55 Up +0.06 +1.72%
Universal Insuranc… CAPS Rating: *****
GIGM $1.15 Up +0.03 +2.68%
GigaMedia CAPS Rating: ****
CALM $36.51 Down -0.20 -0.54%
Cal-Maine Foods, I… CAPS Rating: ****
CHNG.PK $1.46 Down -0.02 -1.35%
China Natural Gas,… CAPS Rating: ***
CKSW $8.80 Up +0.12 +1.38%
Click Software Tec… CAPS Rating: *****

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