5 More Unloved Growth Stocks

Ah, skepticism, how I love thee.

We rebel investors at Motley Fool Rule Breakers believe that multibaggers in the making, while not often cheap by the numbers, are always misunderstood. As such, they face extraordinary skepticism, which, in turn, makes them excellent value stocks.

More are out there. Each week, right here in this column, we'll hunt them down. Grab your keyboard.

What one stock can do for you
Really, it's worth your time. One home run stock can make all the difference to your portfolio.

Just ask David Gardner, captain of the good pirate ship Rule Breakers, who bought Amazon at a split-adjusted price of $3.24 a share in 1997. He's up more than 2,300% since.

That helped him overcome stinging losses from Sirius Satellite Radio, Millennium Pharmaceuticals, and others to put up nine years of better than 20% average annual returns as the leader of the real-money Rule Breakers portfolio.

Let the haters be your friends
Today, David and his team still seek misunderstood growers. You can, too, with the help of our completely free Motley Fool CAPS investor-intelligence database, which currently contains information on more than 4,900 stocks.

CAPS applies user input to rate stocks from one (low) to five (high) stars. Using CAPS, we're once again going to search for one- and two-star stocks that have at least 5% of their available shares sold short, but are expected to grow their earnings by no less than 15% over each of the next five years.

Let's have the list
Now, with that preamble behind us, here are five unloved growth stocks:

Company

CAPS Rating

Short Interest

5-Year Growth Estimate

NuVasive (NASDAQ:NUVA)

**

13.20%

31.25%

Take-Two Interactive (NASDAQ:TTWO)

**

35.40%

15.56%

The Children's Place (NASDAQ:PLCE)

*

13.70%

15.25%

Plains Exploration & Production (NYSE:PXP)

**

6.20%

15.00%

Genomic Health (NASDAQ:GHDX)

**

11.80%

15.00%

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. But of these five, NuVasive, which sells devices for minimally invasive back surgery, interests me most.

Why? Two reasons, really. First, because NuVasive's technology reminds me of one of our best-ever picks for Rule Breakers, Intuitive Surgical (Nasdaq: ISRG  ) . Second, because the company's gross margin and return on capital have seen dramatic improvements in recent years.

Intrigued? Do your own due diligence, 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. And there's no risk of losing money.

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

Millennium Pharmaceuticals and Intuitive Surgical are Rule Breakers recommendations. More than 10 stocks in the portfolio, including Intuitive Surgical, have at least doubled. Discover the identities of the others with a 30-day guest pass to the service. There's no obligation to subscribe.

Fool contributor Tim Beyers, who is ranked 9,138 out of more than 60,000 participants in CAPS, is a regular contributor to Fool.com and Rule Breakers. Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Click here for Tim's portfolio and here for his latest blog commentary. Amazon is a Stock Advisor pick. The Motley Fool's disclosure policy is your portfolio's competitive advantage.


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