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3 Stocks Shaking the Market

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Some stocks are one-hit wonders, making a big splash when they first appear, then quickly fizzling into obscurity or oblivion. But for other stocks, that initial big move is only a preview for even bigger and better gains to come.

Today, we've listed three stocks that made some of the biggest upward moves over the past month, which we'll pair with the ratings issued by our Motley Fool CAPS community. The higher each stock's rating, the greater CAPS members' faith in that company's ability to keep on beating the market.

Stock

1 Month % Change

CAPS Rating

Javelin Pharmaceuticals (NYSE: JAV  )

44.7%

**

Exide Technologies (Nasdaq: XIDE  )

23.7%

****

Direxion Daily Financial Bear 3X Shares (NYSE: FAZ  )

21.7%

*

Percentage change from June 2 to July 1.

As the markets whipsaw to changes in consumer sentiment, the S&P 500 has edged down about 7%. Before we get shaken out again, let's see why the CAPS community thinks some of these companies might continue to outperform the market.

A mighty temblor
Financial hazards abound. We're supposed to believe that the folks who helped to bring us the financial crisis now have the prescriptions for reform that will prevent another meltdown. But carveouts for favored constituents, both good and bad, will ensure that nothing real gets accomplished. "Too big to fail" remains entrenched, allowing Wall Street -- as epitomized by Citigroup, Bank of America, and JPMorgan Chase -- to continue winning at the expense of Main Street.

Across the Atlantic, Greece, Spain, and the rest of the PIIGS have allowed their special version of "swine flu" to spread to most of Europe, making austerity the watchword in capitals around the world. There's still no guarantee that they won't teeter and fall, making a bank investment a contagion to avoid.

It's not surprising that the Direxion Daily Financial Bear 3X Shares ETF has bounced more than 20% higher over the past month, as the risks have mounted. In betting that the ETF will rise even higher, CAPS member UltraLongFI expects another marquee name to collapse:

Another round of banking problems is just around the corner. It is just a matter of time we got a new "Lehman."

Even if true, though, investors would be well-advised to tread carefully with these leveraged ETFs, since they're designed for day traders. Even Direxion says it's really not appropriate for longer holding periods. Our financial institutions may indeed be headed for trouble, but I wouldn't recommend using this or any leveraged ETF anywhere other than on CAPS.

A speedy opportunity
Exide Technologies had a profitable fourth quarter, but even the weakened dollar, which spurred international demand for its batteries, couldn't push earnings high enough to put it into the black for the year. Although analysts predict additional growth for Exide, the dollar has been faring pretty well against most foreign currencies, and losing Wal-Mart (NYSE: WMT  ) as a distributor will be a big hole for the company to plug.

The CAPS community remains just as bullish as analysts, however, with 97% of the more than 350 members who've rated the storage-technology specialist confident that it can still outperform the broad market averages. Store your opinion on the Exide Technologies CAPS page about whether 2011 can bring a spark of growth.

I feel your pain
She loves me, she loves me not. She loves me! That's what Javelin Pharmaceuticals investors must be thinking, as the acquisition of the company by Hospira (NYSE: HSP  ) draws to a close. After originally wooing the tiny pharma away from Myriad Pharmaceuticals earlier this year, the U.K. recall of Javelin's pain medication Dyloject caused Hospira to charge that all the conditions of the merger hadn't been met. Javelin sued Hospira for failing to live up to the terms, and the stock went all over the place. Hospira is expecting the deal to close today.

Some investors, including CAPS member WPThatcher, were trying to play arbitrageur with the deal's progress. But ultimately, even Hospira investors think the deal is a good one, and CAPS' crubenst is anticipating the merger's closure.

With only a slightly higher percentage of CAPS members expecting Hospira to beat the market than those who had weighed in on Javelin, why not head over to the Hospira CAPS page and share your thoughts on the merger's conclusion?

Shake, rattle, and roll
With these stocks shaking the market this past month, it pays to start your own research on them at Motley Fool CAPS. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made all from a stock's CAPS page.

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Fool contributor Rich Duprey does not have a financial position in any of the stocks mentioned in this article. You can see his holdings here. You can shake, rattle, and roll The Motley Fool's disclosure policy, but it still won't break.


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 July 02, 2010, at 6:49 PM, DDHv wrote:

    XIDE is checking out the PbC battery possibilities. These batteries beat the current deep cycle batteries hands down, and will likely be useful in the current fuel saving vehicles now coming out.

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Related Tickers

2/10/2012 4:00 PM
WMT $61.90 Down -0.06 -0.10%
Wal-Mart Stores CAPS Rating: ****
XIDE $3.03 Down -0.96 -24.06%
Exide Technologies CAPS Rating: *****
FAZ $26.67 Up +0.68 +2.62%
FINANCIAL BEAR 3X CAPS Rating: *
HSP $33.79 Down -0.32 -0.94%
Hospira, Inc. CAPS Rating: **

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