3 Stocks Shaking the Market

Some stocks are one-hit wonders, making a big splash when they first appear and 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 (out of 5)

China Information Technology (Nasdaq: CNIT  )

95.8%

**

Express-1 Expedited Solutions (NYSE: XPO  )

65.4%

**

lululemon athletica (Nasdaq: LULU  )

46.5%

**

Source: FinViz.com.

While you were out, the markets staged a remarkable recovery, enjoying their best week last week in almost two years. 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
China's call to reform its health-care system and upgrade the information systems being used sounds a lot like various aspects of Obamacare, such as its call for greater reliance on electronic record-keeping. China Information Technology says its digital hospital information systems (DHIS) was one of just four vendors approved by the Hunan province department of health, allowing it to win contracts related to the reform mandate.

Yet when combined with CIT's geographical information map-plotting technology that it's integrating with its location pinpointing technology and the use of biometric identification tools, it takes on a much more ominous tone. CIT is developing monitoring devices that it will be sharing with law enforcement through use of data contained in local ID card systems.

Considering that Cisco (Nasdaq: CSCO  ) is signing up to help China implement a widespread surveillance system in addition to the thousands of surveillance cameras China Security & Surveillance Technology (NYSE: CSR  ) has installed and monitors, the ability of the government to keep a closer watch on its people becomes even easier.

There's still concern that CIT might be one we add to the tall heap of small-cap Chinese RTO stocks, and the sudden resignation of its CFO recently did nothing to enhance our view. But CIT has bounced up sharply on the DHIS approval, and 95% of the CAPS members rating it think it can beat the broad market averages, though its two-star rating suggests that they think there are safer places for your money.

Let us know on the China Information Technology CAPS page whether you think it can keep close tabs on its growth prospects.

Fast-forward to growth
When your list of ventures includes billion-dollar successes such as United Rentals and United Waste Systems (now part of Waste Management (NYSE: WM  ) ), it's understandable why investors would be excited when you assume the helm of a company you've invested in.

That's the enviable spot that Express-1 Expedited Solutions investors find themselves in, as Bradley Jacobs becomes the majority shareholder with a $150 million investment and takes over as CEO of the third-party-logistics company.

Building on the strategy he's used in the past, Bradley says he'll be looking to make acquisitions to create a multibillion-dollar business. He did that with United Rentals, picking up some 250 companies along the way and turning it into the world's biggest rental company. Considering that the international freight forwarding business is estimated to be around $150 billion in size, there's plenty of opportunity for Express-1 to expand.

While CAPS All-Stars were noticeably split on the merits of the company before Jacobs' investment, the overall CAPS community was much more upbeat, with 91% of those rating the company thinking it would outperform the indexes.

I've gone over to the Express-1 Expedited Solutions CAPS page and registered my opinion that Jacobs will have another success on his hands. Let us know how you feel in the comments section below.

Should I stay or go?
Yoga apparel maker lululemon atheltica has seen its shares more than triple over the past year, let alone the surge it's seen in the past month. A strong earnings report helped the latest jump in value -- along with the announcement of a 2-for-1 stock split that's effective today -- and there's expected to be even greater growth coming now that its inventory issues and e-commerce site are settled. But unlike Nike (NYSE: NKE  ) or Under Armour, lululemon's "problems" were with too much demand, and it sees online sales accounting for 15% of revenues soon (they're on track to hit 10% this year).

Yet with the stock trading at 64 times trailing earnings and 46 times forward estimates, the apparel maker appears pretty richly valued considering what analysts are expecting in terms of growth. Under Armour is similarly premium priced. At a third of what its rivals go for, Nike seems to be the more attractive buy.

CAPS member pateden looks for the stock to crash when it's revealed that yoga clothes are a fad, much as a certain plastic shoemaker did. But astephan2525 thinks lululemon has legs.

A healthy lifestyle yoga-wear company from Vancouver. Quality high-end goods with a good band. Women used to wear skirts and panty hose when they went out. Now they wear yoga clothes. C'est la vie. As one analyst put it, "don't bet against a company if women think the products make their butt look good." The stock is pricey but you have to pay for stellar growth.

Tell us on the lululemon atheltica CAPS page whether you think it's a stretch for the yoga-clothes maker to continue its remarkable climb.

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.

The Motley Fool owns shares of Waste Management, lululemon athletica, Cisco, and Under Armour and has created a bull call spread position on Cisco. Motley Fool newsletter services have recommended buying shares of Nike, lululemon athletica, Cisco, Waste Management, and Under Armour and creating a diagonal call position in Nike. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 

Fool contributor Rich Duprey owns shares of Cisco but has no financial position in any of the other stocks mentioned in this article. You can see his holdings. You can shake, rattle, and roll The Motley Fool's disclosure policy, but it still won't break.


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