Tomorrow's Monster Stocks

Famed money manager Peter Lynch called them "10-baggers" -- stocks that climbed to 10 times the value he paid for them. They're a rare breed, but they're not impossible to find. Especially not when you're a friend of Fools.

If you look at the market's best stocks, you'll find companies that have risen in value over the past decade by 3,000%, 5,000%, and even 24,000%. They're not penny stocks, but rather the stocks of viable companies that have sound business prospects and are achieving phenomenal returns every year. You need to pick only one or two monster stocks to have a winning portfolio.

Stalking the monster
So where can we find tomorrow's monster stocks today? At Motley Fool CAPS, we track the opinions of more than 70,000 investors who are working every day to help collectively identify those winners. Thousands of stocks have CAPS ratings from both novice and professional analysts, and the opinions of the best stock pickers are weighted more heavily in determining a stock's CAPS rating of one to the maximum five stars.

Investors at CAPS are rated as well, and we call the best of them All-Stars. We've compiled a list of these top players, who, like Peter Lynch, have already found monster stocks -- companies that have doubled, tripled, or quadrupled in price. Then we've given you some of their recent picks for stocks that they consider equally promising.

Player

CAPS Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating

adoratium

99.97

China Southern Airlines (NYSE: ZNH  )

220.53

Suntech Power Holdings (NYSE: STP  )

*****

orangehat

98.32

China Mobile (NYSE: CHL  )

193.97

America Movil (NYSE: AMX  )

*****

Azurepoet

99.14

SunPower (Nasdaq: SPWR  )

154.23

Nabors Industries (NYSE: NBR  )

****

Of course, this is not a list of stocks to buy -- or to sell, for those monster stocks that the CAPS All-Stars have already found. Instead, it's a jumping-off point for doing additional research.

The future's so bright
Where CAPS All-Star Azurepoet earned distinction with a great call on SunPower, the solar-energy subsidiary of Cypress Semiconductor (NYSE: CY  ) , adoratium seeks to do it again with Suntech Power, a Chinese alternative-energy company that designs, manufactures, and sells photovoltaic cells. Included in the penumbra of this concern's attraction is that Suntech has an exclusive contract to provide solar energy for the main stadium at the 2008 Olympics in Beijing.

After a first-quarter earnings scare that spooked Wall Street into driving down its stock price, a lot of CAPS players took a new look at this Motley Fool Rule Breakers recommendation, including All-Star cnj01, who thinks the long-term prospects outweigh any short-term price fluctuations: "Recent recovery of stock prices are largely a correction of an overreaction of Wall Street to the dismal first quarter earnings. Longer term this manufacturer of photovoltaic cells is expected to return to more normal revenues and earnings."

That's also what's on the mind of CAPS player LazarKacho, who sees Suntech as being in the nascent stage of a long-term growth trajectory:

Demand for alternative energy sources and especially solar power is going to continue to grow at an unprecedented rate (or at least it should) as the world begins to understand the environmental problems humanity is facing. Governments are going to continue to develop strategies to resolve these problems and their efforts are going to become more and more radical. STP is at a position where it can tremendously benefit from these efforts and the growing demand for its products. It is a leader in an industry that is only in its nascent stages of development, but possesses enormous potential. It has a superior product and lower labor costs compared to some of its competitors. The company valuation is also more attractive and seems more reasonably valued with regards to its growth prospects and current earnings compared to its peers.

A chance for scary growth
Now's the opportunity for you to weigh in on Suntech or any of the other stocks these All-Stars see as achieving monster growth. Agree with their views? Tell us on CAPS. If you don't agree, let us know that, too! If you've got an opinion, then this is the place where your voice counts just as much as everyone else's. Come to CAPS, and let us know whether you think tomorrow's monster stocks have been uncovered today.


Read/Post Comments (0) | Recommend This Article (6)

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.

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: 539345, ~/Articles/ArticleHandler.aspx, 12/18/2014 4:42:03 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...


Advertisement