With the S&P 500 still off 30% since late 2007, it's been a wobbly few years for all of us in the investing community. With many stocks still below their highs -- some deservedly, some less discriminately -- the important question becomes "How can we separate disasters from the very real opportunities that are out there right now?"
A great place to start looking is a pool of the favorite stocks of our 165,000 person-strong Motley Fool CAPS investment community. These stocks have the most bullish support, weighted by each player's ability.
With that approach in mind, I used our new CAPS screening tool to pick out some strong names from CAPS community's most beloved stocks. Let's look at seven names that have fallen 30% or since the market's 2007 high.
They also have:
- Three-year annual revenue and earnings-per-share growth greater than 5%, indicating that their businesses haven't totally imploded since the market peak
- Five-star ratings, the highest possible, from our CAPS community.
Since CAPS' launch at the start of 2007, four-star companies outperformed the market by more than 25%. Five-star stocks did even better.
|
Company |
Return Since Oct 12, 2007 |
3-Year Revenue Growth |
3-Year Earnings Growth |
CAPS Rating |
|---|---|---|---|---|
|
Hologic |
(57%) |
38% |
43% |
***** |
|
Net 1 UEPS |
(55%) |
9% |
6% |
***** |
|
National Oilwell-Varco |
(52%) |
17% |
19% |
***** |
|
Fluor |
(43%) |
14% |
34% |
***** |
|
Morningstar |
(37%) |
13% |
13% |
***** |
|
Atwood Oceanics |
(35%) |
22% |
32% |
***** |
|
Kinetic Concepts |
(35%) |
12% |
6% |
***** |
Data from Motley Fool CAPS and Capital IQ, a division of Standard & Poor's, as of June 13, 2010.
Of course, screens are merely a first step in the stock-selection process. Come and join us absolutely free on Motley Fool CAPS to dig into these companies further. Let our 165,000-strong (and counting) CAPS community help you identify the best opportunities today.
