Tomorrow's Monster Stock

Stocks climbing 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 the market's weaknesses. These aren't penny stocks; they're viable companies with sound business prospects that are 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 180,000 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)

lovehut 93.57 Netflix 378.02 Corning (NYSE: GLW  ) *****
symie5 95.37 Under Armour 200.99 Sirius XM Radio (Nasdaq: SIRI  ) **

Score is by 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, sell. Just consider them starting points for your own further research of extreme buying opportunities.

Hiding in plain sight
While display-glass maker Corning is busy setting expectations for future growth and profitability, the market reset its stock price last summer and has kept the pressure on ever since. Demand for LCD TV screens, the primary driver of sales and earnings for Corning, has been weak and doesn't look to be getting any better. That was the reason behind its "reset" talk during its January conference call. Yet even though it's going to see narrower margins as a result, Corning is taking the appropriate measures of cutting its prices both as a means to gain sales as well as maintain share.

Despite weaker-than-expected demand for flat-panel displays in Asia, even analysts can't say for certain what if any growth there will be. Many expect around 7% growth or so, but NPD Display Search sees it closer to 2%. Then there's the issue of worsening pricing on display technologies products, which Corning is addressing.

But there are bright spots, too, that the market seems to be missing. As a feature of the iPhone, Apple (Nasdaq: AAPL  ) continues selling fistfuls of units, and the possibility of an iPhone 5 that's LTE capable has Sprint Nextel (NYSE: S  ) upgrading its network to support the $15 billion worth of iPhones that it's guaranteed Apple it will sell.

That's evident in the 19 million miles of fiber optic cable telecoms rolled out last year, leading Corning to tell customers it can't guarantee orders will be filled. As video content streaming becomes more prevalent, there will be even more demand. Analysts say Netflix is driving that growth right now, accounting for nearly 33% of all peak downstream Internet traffic. As one of the biggest suppliers of fiber optic cable, Corning's sitting pretty.

The myriad of products Corning is involved in will sustain it through the tough times, says CAPS member davidkware: "The glass market has hurt the short-term outlook for Corning, but solid management and the strong internal valuation of the company in addition to the pantheon of products it provides should provide long-term growth. The dividend is just an added incentive."

Add Corning to your Watchlist to see whether investors are willing to see the opportunities present for the glass specialist.

Going into orbit
Satellite-radio operator Sirius XM Radio reported better-than-average revenue-per-user statistics last quarter, which helped drive significant earnings-per-share improvement, and allowed it to notch $0.07 per share in profits for the full year, compared with a penny in 2010. Not surprising, then, that Liberty Media (Nasdaq: LMCA  ) wants to gain a controlling interest in the programmer, even if Sirius itself is fighting the effort. Liberty sees future growth is inevitable, if not imminent.

Obviously, much of that potential comes from a resurgent auto industry. While American automakers strive to maintain control of the wheel, Motley Fool blogger Bobby Fisher believes it's still key.

Automobile sales contribute an enormous portion to Sirius' success and all reports are good on the automobile home front for this year. Vehicle sales have been a strong wave Sirius has ridden on for the past few years. Analysts pinned auto sales as responsible for a growth of nearly 10% in customer base in Sirius subscribers last year. It's safe to say, Sirius still rules the rule the road, especially in the face of competitors like Pandora vying for a spot of automobile media.

Add the satellite-radio operator to your Watchlist, and let us know on the Sirius XM Radio CAPS page whether you agree it will be able to rev up its growth engine.

A chance for scary growth
It takes more than a few All-Star picks and a quick pitch to make buy or sell decisions, so start your own research on these stocks on Motley Fool CAPS and marvel at the range of opinions there.

While you're at it, see the one stock The Motley Fool thinks is changing the face of business. The new special free report highlights the only tech stock you'll ever need to own, and it's yours free!

Fool contributor Rich Duprey owns shares of Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Apple. Motley Fool newsletter serviceshave recommended buying shares of Corning, Netflix, and Apple and creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (5) | Recommend This Article (11)

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 April 10, 2012, at 3:24 AM, tokelau wrote:

    The Fool just recently sold its Corning stock, see the disclaimers. Why?

  • Report this Comment On April 10, 2012, at 5:13 AM, TMFCop wrote:

    tokalau,

    Where did you get the idea that Corning was a sell recommendation at the Fool? None of the Fool's services has recommended a sale or has sold it.

    Rich

  • Report this Comment On April 10, 2012, at 11:18 AM, tokelau wrote:

    I read the disclaimers: a week ago MF still held Corning stock, now they don't. Elementary, Watson.

  • Report this Comment On April 10, 2012, at 10:36 PM, TMFCop wrote:

    Hmmm. I just checked a few articles and it does say about a week ago the Fool owned shares, however I haven't been able to find a service other than Stock Advisor that had GLW as a recommendation, and it's still an active recommendation there.

    I'm going to check into this further. Glad you mentioned it. Thanks!

    Rich

  • Report this Comment On April 12, 2012, at 7:16 AM, TMFCop wrote:

    tokelau,

    Turns out there was a bug in the disclosure reporting system that made stock purchases by Rising Star analysts disappear (Google apparently changed some code that broke the system).

    You'll find now that when Corning is mentioned again, it will appear as being owned by the Fool again.

    FWIW, it was Fool analyst Anand Chokkavelu who recommended GLW using a real money "Rising Star" portfolio and the port still owns the stock:

    http://www.fool.com/investing/general/2012/01/09/3-stocks-to...

    Since these portfolios are seeded with money provided by the Fool, the stocks rec'd and bought are considered owned by the Fool.

    Thanks for catching that because until you mentioned it, it wasn't known that there was a bug in the reporting code.

    Rich

Add your comment.

DocumentId: 1858174, ~/Articles/ArticleHandler.aspx, 4/18/2014 5:41:26 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement