The CAPS Screen: 5 Stocks Ready to Run

By Bryan White
July 17, 2008 | Comments (0)

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With these examples in mind, I used our new CAPS screening tool to find the stocks poised for big gains -- before Wall Street catches on.

These companies have:

Trailing three-year earnings growth of at least 10%.
Market capitalizations of at least $200 million and no more than $10 billion.
Four- or five-star ratings in CAPS, up from one, two, or three stars at the beginning of 2008.

Remember, in the first year for which we have data, newly-minted four-star stocks like Intuitive Surgical (Nasdaq: ISRG) (up 238% during that year) outperformed all other categories, yielding 41% on average.

Here are some of the companies I found:

Company	Share Price	Sector	Market Cap
Allscripts Healthcare Solutions (Nasdaq: MDRX)	$13.17	Services	$745 million
Anthracite Capital (NYSE: AHR)	$6.42	Financial	$454 million
Citizens Communications (NYSE: CZN)	$11.50	Technology	$3.7 billion
Gushan Environmental Energy (NYSE: GU)	$12.17	Basic Materials	$1 billion
Quicksilver Resources (NYSE: KWK)	$33.90	Basic Materials	$5.4 billion

Data from Motley Fool CAPS and Yahoo! Finance as of July 16.

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Bryan White does not own shares of any company mentioned in this article. Nuance is a Motley Fool Hidden Gems recommendation. Intuitive Surgical is a Rule Breakers selection. Citizens is an Income Investor pick. The Motley Fool has the best disclosure policy in the biz.

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