Beat This Stock!

A basketball or baseball game may have only one winner, but investing offers many roads to profits. We don't need to find the "best" stock year after year to secure our financial future -- we just need to find really good stocks, really consistently. Now, the collective intelligence of our 82,000-plus Motley Fool CAPS investors makes that task easier than ever.

For nearly every high-rated stock on CAPS -- like five-star-rated gold mining and exploration company Golden Star Resources (AMEX: GSS) -- there's an even better stock above it in the rankings. Just look for the "Beat This Stock!" button in the top right corner of each stock's CAPS page. Click that button long enough, and you'll climb the CAPS ladder toward the service's No. 1-ranked stock. Along the way, you'll gain a handful of stock ideas that might help you beat the market by an even wider margin than your favorite company does.

So who ranks better than Golden Star? Below are five stocks that CAPS investors ranked higher than the gold digger. CAPS is a dynamic service, so while these were the companies it generated this morning, the list may be different for you:

This is obviously not a list of stocks to buy; instead, it should be a springboard for your own due diligence. Still, let's examine some of the reasons why CAPS investors think these companies' returns will beat Golden Star Resources and the market alike.

Gone in a flash
According to the market analysts at DRAMeXchange, growth in the NAND flash market will continue unabated as demand for cell phones, MP3 players, digital cameras, and flash drives marches forward. As other analysts have noted, Apple (Nasdaq: AAPL) is responsible for a lot of this demand, because its iPhone and iPod Touch products consume much of the NAND flash supply.

With demand and pricing improving later on this year, the outlook for Silicon Motion Technology also looks to be better as well. The fabless chip designer was initially hurt in the third quarter last year, when flash supplies were constrained. It got a temporary boost when it sidestepped problems and posted a 44% increase in sales and raised guidance, but shares have since slipped and now trade at about half their 52-week highs.

Silicon Motion's ability to continue to make sales in a cyclical industry means CAPS investors like unclecharles believe it remains a solid bet.

While SIMO may continue to slide in the immediate future, it is a fundamentally solid small cap stock that is making money. It is also in an industry that is currently making money. That is enough for me to believe that SIMO will make a solid bounce in the intermediate term.

In November, as Silicon Motion's stock began to slide, top-rated CAPS All-Star floridabuilder, with a 99.92 player rating, felt that even then, future growth made its price look attractive.

I like the entry point of 20 dollars ... there are 5 support points going back to Feb of this year and it is at a 25% discount from its Oct high. ... SIMO missed earnings by 2 cents (30 vs. 32), but trades at a PEG of .50 ... that is a pretty low PEG unless of course [you're] a mortgage company, retailer or builder ... oh that's right builders aren't making money any more ... [The Motley Fool] has had 2 wires recently after the miss and neither are negative, if anything there is a positive spin that better times are ahead ...

Since then, its valuation has gotten even cheaper, and with industry forecasts pointing to big gains in demand, Silicon Motion may be able to take advantage this time around.

Just beat it!
Is CAPS correct? These companies may rate higher than Golden Star Resources, but will they actually top its performance going forward? Head to Motley Fool CAPS and share your opinion on your favorite stock to beat.