3 More Undiscovered Growth Stocks

Game-changing discoveries, though typically the stuff of legend, happen more often than we think.

This week provides yet another example. On Tuesday, Chinese authorities reported that hundreds of porcelain artifacts dating to the Ming dynasty, which ruled China from the 14th to the 17th centuries, have been recovered from a shipwreck in the South China Sea.

The find follows a similar discovery of sunken treasure made three weeks ago by Odyssey Marine Exploration (AMEX: OMR  ) . As much as $500 million is at stake in that quest, if press reports are to be believed.

Running with the rebels
What does any of this have to do with investing? Plenty. Unearthing outstanding growth stocks early in their development can create game-changing returns for your portfolio.

Just ask David Gardner. By investing in up-and-coming fast movers such as Amgen (Nasdaq: AMGN  ) , he produced nine years of 20% average annual returns. History told him that these were the best value stocks available, and many became daybaggers.

That's why David and his team at Rule Breakers still seek to get in early on businesses 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 4,600 stocks.

CAPS applies user input to rate stocks from one to five stars. So, using CAPS, we're once again going to search for stocks that haven't yet met the threshold for a star rating, that have a minimum $250 million market cap, and that are expected to grow their earnings by at least 15% over each of the next five years.

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


No. of CAPS ratings

Bullish CAPS ratings

5-Year Growth Estimate

Texas Capital BancShares (NASDAQ:TCBI)




Schawk (NYSE:SGK)








Sources: 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 Texas Capital BancShares, which provides banking services to businesses and high-net-worth individuals in Texas.

With Dell in Austin, Texas Instruments (NYSE: TXN  ) in Dallas, and Sysco in Houston, it's easy for me to envision TCBI being an excellent business. Perhaps that's why insiders still own more than 8% of the company.

Intrigued? Do your own due diligence and then check in with thousands of other investors at CAPS. And, 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 three more undiscovered growth stocks.

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

Sysco is an Income Investor pick. Dell is a recommendation of both the Inside Value and Stock Advisor services.

Fool contributor Tim Beyers, who is ranked 4,874 out of more than 30,300 rated investors 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. Tim's portfolio holdings can be found at his 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 an investor's greatest discovery.

Read/Post Comments (0) | Recommend This Article (10)

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: 529715, ~/Articles/ArticleHandler.aspx, 10/22/2016 9:32:13 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 12 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

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

12/31/1969 7:00 PM
SGK.DL $0.00 Down +0.00 +0.00%
Schawk CAPS Rating: No stars
TXN $69.97 Up +0.22 +0.32%
Texas Instruments CAPS Rating: ***
AMGN $158.51 Down -2.99 -1.85%
Amgen CAPS Rating: ****
TCBI $59.50 Up +2.25 +3.93%
Texas Capital Banc… CAPS Rating: *