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Tomorrow's Monster Stock?

Stocks that climb to 10 times their original price are rare breeds -- but they're not impossible to find. Especially when you have Fools for friends.

The market's best stocks include companies that have risen dozens of times in value by taking advantage of Wall Street's weaknesses. These aren't penny stocks; they're viable companies with sound business prospects, achieving phenomenal returns. Finding just one or two of these monstrously successful firms can help you establish a winning portfolio.

Stalking the monster
To find tomorrow's winners, we've enlisted the help of more than 170,000 monster trackers at Motley Fool CAPS. We've compiled a list of the most successful CAPS members, dubbed All-Stars, whose picks have doubled, tripled, or even quadrupled in price. Then we've plucked out some of their recent picks for stocks they find equally promising.

Player

CAPS Member Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating (out of 5)

tester34

92.49

Amazon.com

327.65

Boston Scientific (NYSE: BSX  )

****

ut84088

92.73

Xyratex

314.04

GMX Resources (Nasdaq: GMXR  )

**

bg11235

97.36

Vale

352.15

Teva Pharmaceuticals (Nasdaq: TEVA  )

***

Score is how many percentage points that pick is beating the S&P 500.

Of course, this is not a list of stocks to buy -- or, for those monster stocks that our CAPS All-Stars have already found, to sell. Just consider them starting points for your own further research of extreme buying opportunities.

In search of Bigfoot
Medical device makers are closely watching the development of new proposed FDA rules that will affect how the agency approves 90% of all medical devices. The regulations are no small matter to stent makers Boston Scientific, Medtronic (NYSE: MDT  ) , and Abbott Labs (NYSE: ABT  ) , either. Stents have had a rocky past, and Boston's manufacturing facilities have recently come under closer scrutiny.

Only you can diagnose whether Boston Scientific is right for your portfolio. Add it your My Watchlist page, and get all the Foolish news and analysis about the stock aggregated in one place.

A good reception
With shares down 68% year to date, natural gas developer GMX Resources' plans to cut its capital expenditures next year hardly seem like good news. Although the company believes it can drill more wells with fewer rigs -- 10 wells per rig instead, of the current eight -- it's been suffering from delays in fracture stimulation services. Rather than the 20 wells it had expected to drill in the Haynesville area this year, it will only be able to drill 16.

Capacity constraints have hurt a number of drillers. Comstock Resources (NYSE: CRK  ) is trying to work with oil service providers to improve the number of wells in its backlog awaiting completion. The delays have diminished its expected production levels for the third quarter.

Yet 95% of the CAPS members rating GMX Resources believe it will overcome those obstacles to outperform the broad market averages going forward. You can drill down on the company's potential on the GMX Resources CAPS page.

Inflating values
For drugmaker Teva Pharmaceuticals, there's always an endless supply of branded drugs to target for generic copies. Last quarter, it released nine new products in the U.S., which helped contribute to a 14% jump in U.S. sales. That gives Teva the opportunity to increase its economies of scale, but also the wherewithal to expand its own branded drug pipeline.

With lots of competition from Mylan (NYSE: MYL  ) , Teva might not yet be a perfect stock. But there are a number of high-profile, blockbuster drugs going off-patent soon, and investors can be sure Teva will be one of the generic-drug makers looking to lead the pack and gain a window of exclusivity.

CAPS member poor0richard thinks Teva has all the bases covered at a good price:

They make generics, they make regular meds and the make MONEY for shareholders, look a the chart. Low p/e right now.

A chance for scary growth
It takes more than a few All-Star picks and a quick pitch to make buy or sell decisions. Start your own research on these stocks on Motley Fool CAPS, and find other opportunities with monster potential.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Amazon.com is a Motley Fool Stock Advisor selection. The Fool owns shares of Medtronic and Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community.

Fool contributor Rich Duprey currently does not own any stocks as you can see here. The Motley Fool has a disclosure policy.


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Related Tickers

5/25/2012 4:02 PM
MDT $36.88 Down -0.19 -0.51%
Medtronic, Inc. CAPS Rating: *****
TEVA $38.61 Down -0.08 -0.21%
Teva Pharmaceutica… CAPS Rating: *****
CRK $14.98 Up +0.35 +2.39%
Comstock Resources… CAPS Rating: ***
ABT $62.25 Down -0.17 -0.27%
Abbott Laboratorie… CAPS Rating: *****
BSX $5.87 Down -0.04 -0.68%
Boston Scientific… CAPS Rating: ***

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