For every stock out there screaming "Buy me!" others simply give us a nudge and a nod. While all the attention might be focused on their five-star peers, we can sift through Motley Fool CAPS to find four-star stocks giving us the "high-five" signal that they're approaching greatness.
These opportunities -- including familiar names and beaten-down companies -- rank higher than most of the other 5,400 starred companies, and it pays to investigate their potential. For consideration today I've got a pair of stocks on their way to fame and glory:
|
Company |
Market Cap |
1-Yr. Rev. Growth |
1-Yr. EPS Growth |
1-Yr. Stock Return |
|---|---|---|---|---|
|
Amgen |
$62.4 billion |
2.8% |
0.5% |
18.2% |
|
Ford |
$45.9 billion |
9.0% |
121.4% |
(34.0%) |
Source: Motley Fool CAPS
As the 180,000-plus CAPS members have chosen these companies as less-obvious sources for tomorrow's great buys, let's see why they might merit your attention.
In the sight of greatness
As the pharmaceutical world drives ever closer to its patent cliff, expect biotechs like Amgen with their rich pipelines to jump in the driver's seat and steer themselves clear of disaster.
While drugs in its own established portfolio can see tough new competition -- for instance Epogen, its anemia treatment that has ruled the roost for years -- Amgen is likely to face off against therapies offered by competitors like Affymax
The biotech will be getting a new CEO come May and he sees this year topping a very solid 2011. CAPS member eblasy says Amgen defines what a biotech should be and will continue leading the industry's advances in the future.
This company will outperform the S&P because it was practicaly the original Biotech company. If there is going to be an advance in Biotechnology, this is the company to look for it in. Even though you shouldn't [usually] go for the big companies, this is the one to pick because there is going to be an advance in biotech very soon.
Put Amgen on your Watchlist, and let us know in the comments section below whether you think its growth strategy will come at the expense of their pharmaceuticals or will help them.
Revving its engines
Speaking of being in the driver's seat, Ford is speeding ahead, capturing market share from faltering Japanese automakers in the wake of serious natural disasters that impacted Japanese production lines. It turned out that 2011 was a good year for the domestic carmakers in general, industry sales topping 13 million vehicles as Ford captured share and now holds almost 17% of the market, while General Motors
Although GM's hybrid Volt was supposed to lead the way forward, sales came up woefully short of expectations, and it just initiated a recall of the entire line of cars for a fix. In that regard, Ford probably didn't need the big recall of 450,000 minivans and SUVs it announced the other day, but it retains the prestige of being one carmaker really on the move.
Despite a sizeable earnings miss for Ford a year ago, CAPS member GettingtobeaGuru believes the company kept control of the wheel and them out of the ditch.
The earnings disappointment in January 2011 was the first miss in 2 years, and I think that initial shock may be receding. So any disappointments in the future will have less effect on the price.
Tell us in the comments section below or on the Ford CAPS page whether it will continue to run over GM, and then add it to your Watchlist to see if it can put the pedal to the metal next quarter.
A great opportunity for you
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