Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



5 More Undiscovered Growth Stocks

John Deere made his fortune inventing a steel plow that helped Midwestern farmers dramatically increase their production.

But riches came slowly. Though his company was founded in 1837, it would take 11 years, until 1848, for Deere to do enough business to justify moving it to more expansive facilities in Moline, Ill. That's where Deere (NYSE: DE  ) -- now a $15 billion global firm -- is still headquartered today.

Running with the rebels
Deere's early partners got rich by betting on him well before anyone else. Yet their story is hardly unique. Legendary growth investors like T. Rowe Price earned millions by seeking, and finding, the next Deere.

For David Gardner, who captains the good pirate ship Rule Breakers, betting on little-known and frequently misunderstood growth stocks led to nine years of 20% average annual gains. History told him that these were the best value stocks available.

That's why David and his team still seek to get in early on stocks that are reshaping, or creating, important industries. You can, too, with the help of our completely free-of-charge Motley Fool CAPS investor-intelligence database, which currently contains information on more than 4,000 stocks.

CAPS applies user input to rate stocks from one to five stars. Using CAPS, we're once again going to search for stocks that haven't yet met the threshold for a star rating, with a minimum $250 million market cap and expected earnings growth of at least 20% annually over each of the next five years.

Let's have the list
Now, with that preamble behind us, here are five growth stocks that have yet to be discovered.


No. of CAPS ratings

Bullish CAPS ratings

5-year growth est.





PHI (non-voting stock) (Nasdaq: PHIIK  )




Double-Take Software (Nasdaq: DBTK  )








EMS Technologies (Nasdaq: ELMG  )




Source: Motley Fool CAPS, Yahoo! Finance

Bear in mind that this isn't a list of recommendations. Instead, I offer these stocks as candidates for further research. My favorite, however, is storage software maker Double-Take.

Why? First, its revenue rose more than 60% in the fourth quarter. Second, Double-Take's primary business -- data replication -- is among the faster-growing segments of the $9.8 billion storage software market, according to researcher IDC. And third, both of the CAPS investors who have rated the stock are All-Stars, including Wall Street firm Cowen & Co., whose picks rank in the top 1% of the database.

Intrigued? Do your own due diligence, then check in with thousands of other investors at CAPS. If you'd like, add your own commentary. You'll be helping your fellow Fools and testing your ideas at the same time. Click here to get started now; it's 100% free to participate.

See you back here next week for five more undiscovered growth stocks.

How great is growth? Four of the dozens of stocks in the market-beating Motley Fool Rule Breakers portfolio have more than doubled in two years. Care to find out what they are? Click here to get 30 days of free access to the service.

Fool contributor Tim Beyers, who is ranked 1,370 out of more than 24,900 in CAPS, is a sucker for growth stocks and a regular contributor to Rule Breakers. Tim didn't own shares in any of the companies mentioned in this story at the time of publication. All of his portfolio holdings can be found at Tim's Fool profile. His thoughts on growth stocks, Foolishness, and investing in general may be found in his blog. The Motley Fool's disclosure policy is a Fool's greatest discovery.

Read/Post Comments (0) | Recommend This Article (24)

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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 524398, ~/Articles/ArticleHandler.aspx, 10/26/2016 4:11:30 AM

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...

Today's Market

updated 6 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:00 PM
DE $86.52 Down -0.18 -0.21%
John Deere CAPS Rating: ***
ELMG.DL $0.00 Down +0.00 +0.00%
EMS Technologies,… CAPS Rating: ***
TDK.DL $0.00 Down +0.00 +0.00%
TDK Corp (ADR) CAPS Rating: ****