7 More Surprising 1-Star Stocks

Recs

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Over the last few weeks, we've been considering poorly regarded stocks that have delivered outstanding returns over a 30-day period (click here and here to refer to some previous editions of this theme). We're back again today to look at another collection of lowly outperformers. Have these dogs had their day, or do you jump on the bandwagon, hoping to profit from the upward momentum?

Here are this week's magnificent seven, as identified by our new Motley Fool CAPS investment research service. Each of the companies below had been given a one-star rating (the lowest) by our community of investors just 30 days ago:

Stock

30-day return

One-year return

New River Pharmaceuticals (Nasdaq: NRPH)

99.60%

116.03%

Acorda Therapeutics (Nasdaq: ACOR)

95.75%

N/A

NVE (Nasdaq: NVEC)

47.99%

199.10%

American Power Conversion (Nasdaq: APCC)

39.95%

41.20%

StemCells (Nasdaq: STEM)

39.05%

(34.82%

Truststreet Properties (NYSE: TSY)

37.44%

22.37%

Applied Digital Solutions (Nasdaq: ADSX)

36.20%

(26.25%)

Data from Motley Fool CAPS as of Nov. 1.

Despite this impressive performance, five of the seven remain one-star stocks. How do you almost double in 30 days (as New River and Acorda did) but remain so poorly regarded? Only two stocks on the list have earned a promotion. Both StemCells, a company concentrating on the discovery and development of stem-cell therapeutics, and Applied Digital Solutions, a provider of RFID systems, have been bumped up to two stars recently.

Of this motley collection, New River Pharmaceuticals may well be the best candidate for further research. While this one has divided our community of investors (27 individuals rate it an "outperform," while 29 give it an "underperform"), our Foolish analyst Brian Lawler reported that the company has just received an approval letter for its lead drug to treat attention deficit hyperactivity disorder (ADHD). I'm sure our biotech analysts at Motley Fool Rule Breakers also have it on their radar screens.

To make your voice heard on these and many other stocks rated by our community (2,268 rated stocks and counting!), get in the game today. You'll also be able to read timely analysis from our community and perhaps offer your own pitch for one of these stocks. It's entirely free, and it's one of the few places I know where the expression "the more the merrier" is actually true.

To sign up for CAPS, click here. For a 30-day free trial to Rule Breakers, click here.

John Reeves does not own shares in any of the companies mentioned. Though currently ranked 7,968 out of 12,000, he figures his elaborate strategy will place him among the leaders any day now. The Fool is investors writing for investors.

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Acorda Therapeutics, Inc.

CAPS Rating 2/5 Stars

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