3 Stocks Shaking the Market

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.

Company

1-Month % Change*

CAPS Rating

ZAGG (Nasdaq: ZAGG  )

99.5%

*

Evergreen Solar (Nasdaq: ESLR  )

59.2%

**

Kandi Technologies (Nasdaq: KNDI  )

51.2%

**

*From Sept. 15 to Oct. 15.

As the markets whipsaw to changes in changes to second-half economic performance, the S&P 500 has been volatile. So 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
Cellphone gadget maker ZAGG had been steadily rising since the summer, when the iPhone antenna issue exploded, but the stock went vertical when the rumors started -- yet again! -- that Apple (Nasdaq: AAPL  ) would finally be introducing a Verzion (NYSE: VZ  ) iPhone.

Cell phone sales in general have been a bright spot for handset makers, but also for ZAGG, which makes cases for them. It has been advertising its cases as a cure for the antenna interference issue, and if a new Verizon model comes out, sales that were already forecast to rise 70% this year undoubtedly had investors expecting they would go even higher next year.

CAPS member iversonj88 thinks the exuberance is overrated, as ZAGG will succumb to falling profit margins:

Don't get me wrong- it has great growth prospects, maybe a buyout potential, and I will be making it a large of my portfolio again soon. Nevertheless, the increased revenue that they reported last week is sure to be beaten down on their earnings call when they announce yet again falling margins.

Let us know on the ZAGG CAPS page whether you think the gadget maker can zig when the market zags.

A sunny disposition
As hot as solar stocks have been, up till about a month ago Evergreen Solar hadn't been enjoying the same sort of robust growth that ReneSola (NYSE: SOL  ) or even Trina Solar (NYSE: TSL  ) has generated. Their stocks were up 200% and 46%, respectively, over the past year while Evergreen was off 42%.

The past month had everyone popping, but Evergreen and a few other small-cap solar shops like Ascent Solar bounced big just a week ago on no real news. But profit-taking and concerns over a brewing trade war with China caused a quick selloff.

pchop123 thinks Evergreen is sinking, regardless of whatever momentary surge it might experience. But if demand is rising for PV panels, then maybe Evergreen can do more than just survive.

Follow along with Evergreen's travails by adding the solar stock to you My Watchlist page and have all the Foolish news and analysis gathered together for you in one place.

A speedy opportunity
Because of Warren Buffett's investment in Chinese electric car maker BYD, many other similarly situated companies get short shrift. Kandi Technologies is one that might be right to satisfy an investor's sweet tooth.

It's a leading developer of LSVs, or low-speed electric vehicles, in China, but what many might not realize is that you can buy one in the U.S. today. While Kandi's "COCO" looks like a Smart car, they can only reach speeds of around 35 mph. Not exactly great for motoring any real distances, but for getting around a city these glorified golf carts would have a niche.

Another niche Kandi is developing is battery rental, replacement, and charging services. In an agreement with China's largest power company, State Grid Power, Kandi will be building a second stream of revenues for itself.

CAPS member WiseChoice4u2 thinks that China's unique situation in particular should make this company a winner:

This should be a huge winner. Lots of growth potential in China for these types of vehicles. It will take a few years to get production up to large numbers but the numbers are coming up. I'm a believer. Check it out.

To determine whether Kandi belongs in your own portfolio, and to know how many similar businesses already occupy your stable of investments, be sure to add it into the Fool's free portfolio tracker, My Watchlist.

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.

Apple is a Motley Fool Stock Advisor pick. The Fool owns shares of Apple. 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 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.


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  • Report this Comment On October 25, 2010, at 4:19 PM, corstrat wrote:

    Good choice with KNDI. One minor correction though. In the US, the Coco is an LSEV. In China KNDI started selling a modified version of their KD5010 a slightly larger and more powerful car to the China Postal Service last quarter, and is now selling the consumer version this quarter. It is a mid speed, not Low Speed car. It has a range of 150km and a top speed of 85kph or a bit over 50 mph. The cost to a consumer after subsidy is currently around $3000 US.

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