No one has perfect foresight, but let's be honest: The market is full of people who, as Oscar Wilde would say, know "the price of everything and the value of nothing." Far too often -- over the past year especially -- investors have been pitched sensational stock recommendations only to be left high and dry as shares crumble.
With that in mind, I summoned our Motley Fool CAPS community to point out a few four- or five-star stocks that have been going gangbusters in recent months. Some are still bargains; others are getting ahead of themselves.
While not formal recommendations, these three-month bloomers caught my attention:
|
Company
|
13-Week
Price Change
|
Recent Share
Price
|
Forward P/E
Ratio
|
CAPS Rating
(out of 5)
|
|
FreightCar America (Nasdaq: RAIL)
|
32.4%
|
$25.26
|
35.6
|
****
|
|
Hansen Natural (Nasdaq: HANS)
|
26.3%
|
$37.64
|
15.0
|
****
|
|
NamTai Electronics (NYSE: NTE)
|
35.9%
|
$5.83
|
20.1
|
*****
|
|
Stryker (NYSE: SYK)
|
21.4%
|
$47.92
|
14.7
|
****
|
|
Volcom (Nasdaq: VLCM)
|
43.3%
|
$18.61
|
21.9
|
****
|
Data from Motley Fool CAPS, and Yahoo! Finance. Price change as of Oct. 23.
You can rerun the CAPS screen I used by clicking here.
A closer look at Hansen Natural
I need but three things to make my day complete. A few hot meals. An episode of The Daily Show. And a Monster Energy drink. The widespread addiction to the latter is what makes so many investors intrigued with Monster parent company Hansen Natural. As CAPS member longtermgrowth09 wrote last summer:
The monster energy drink brand is the premier brand in their sector and the company is still growing in these reccesion so these is the competitive advantage that the brand give to the company. Similarities with the growth of [Coca-Cola (NYSE: KO)] in their early stages are present.
One key point here is Hansen's pristine balance sheet. The company doesn't have a lick of debt, and nearly 10% of its market capitalization is in cash. That benefit can't be touted enough. Young industries, as we'll consider the energy-drink market, change rapidly and frequently. Having balance sheet flexibility in order to absorb those changes is vital. Microsoft (Nasdaq: MSFT) founder Bill Gates frequently cites his company's balance sheet prudence for this reason.
And at 15-times next year's earnings, it's hard to say that shares are terribly expensive. Average expectations are for 11% growth per annum for the next five years. Combine that with the bulletproof balance sheet, and paying what might look like a premium multiple for this company is entirely justified.
A closer look at Stryker
With death and taxes, add osteoporosis and ravaged joints to life's list of guarantees. That's why you should love a company like Stryker, manufacturer of an array of spinal implants, bone cement, and joint replacements for hips and knees -- a niche company that exploits the aging of baby boomers. It's a wonderfully run company, too. As CAPS member MattH42004 wrote early this year:
When it comes to Stryker there's a lot for any investor to like. ... [M]aybe the best thing the company has going for it is one of the strongest balance sheets in the entire health care industry. ... [I]n these times you can't ask for much better than that. Stryker also has tremendous management, with almost 40% insider ownership. ... The company also has demographics on its side. An aging population is in continual need for Stryker's orthopedic products, and any form of increased government health care will only increase the demand for these products.
Well, here we are below $40 per share. Are shares a steal? At just over 14 times next year's earnings estimates, and with over $7 per share in cash, steal away, dear Fools. Stryker is no doubt a wonderful company with a solid balance sheet trading at what most would still consider a reasonable price. In today's market, that's really all you can ask for.
Your turn to chime in
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