Wall Street's Best Hidden Stocks

When asked for the secret of his success, baseball player Wee Willie Keeler replied, "Hit 'em where they ain't." What worked for Willie at the plate applies equally well in investing. 

Seeking stocks that others ignore, shun, or simply forget gives individual investors like you an edge over the professionals. When Wall Street turns a blind eye, you have a chance to get in before these stocks get discovered -- or rediscovered -- and start taking off. 

Below, we'll check out companies with only a handful of analyst coverage, then pair our list with the opinions of the Motley Fool CAPS community. A stock that garners CAPS' top ratings, but hasn't yet caught analysts' attention, could be your next home run investment. 

Source: Yahoo! Finance; N/A = not available.

Remember, without analyst support, you'll have to do your own scouting to see whether these stocks deserve a spot on your portfolio's roster. Don't just buy or sell them based solely on their appearance here. 

Investors might do well to keep their attention on CEL-SCI's Multikine head and neck cancer treatment, which it's been trying to get into phase 3 trials. CEL-SCI, which has received partial funding from Teva Pharmaceuticals (Nasdaq: TEVA), says it was able to successfully manufacture the first lot of the drug necessary to run the tests at its new "cold fill" manufacturing facility with testing starting by the end of the year.

It's going to self-fund those trials, which means we're likely to see the expenses continue to rise as they did last quarter to sharply narrow its losses. With plenty of funding on hand, however, it shouldn't be a concern.

Capstone Turbine makes small energy plants, powered by multiple sources of fuel, which can be used on individual buildings to provide some or all of their energy needs. It's been touting its backlog of business to show the potential it still has, with the total growing 43% from the year ago period. It enjoyed a 40% increase in the quarter prior to the current one when it looked like it was heating up.

Capstone has received three orders in nine weeks from oil and gas developers, suggesting that backlog should continue to show strength, while it's also moving into the vehicle market and redesigning Parker Hannifin's (NYSE: PH) industrial motor drive products. CAPS All-Star IKHNATON says business has never looked better for Capstone then it does now.

I have followed this stock and owned a small position for several years. I don't think the prospects have ever been brighter than they are right now. The current price looks like a bargain. I expect to see an accelaration in the adoption of Capstone products and would recommend taking a small speculative position in this stock to all, including the best of my friends.

A utility player
Delcath Systems has been met with a lot of skepticism for its drug-delivery system for patients with liver cancer. That has prevented some investors from thinking it still has monster potential, but it's going to have to climb a wall of doubt to get beyond those concerns.

It was punished after a presenter at a cancer meeting in June questioned its methodologies, but Delcath has since said it's been able to validate those results, and it continues to pursue federal approvals for its PHP system. It went on to raise about $35 million after offering 5 million shares, which will help it finance the necessary clinical trials a well as run more R&D.

Bristol-Myers Squibb (NYSE: BMY) is targeting the potential liver cancer offers, as is Onyx Pharmaceuticals (Nasdaq: ONXX). Highly rated CAPS biotech guru and All-Star member zzlangerhans thinks that round of financing allowed Delcath to put behind it the worst risks facing it, well, until it submits the PHP system for approval.

With the dilutive financing that was just announced, the most likely potential negative to owning Delcath has been erased. I'm still working on erasing my negative experience-75 pts and 4 positive picks to go to put me in the green. It's hard to imagine that Delcath won't rise above 10 again in the run-up to their inevitable submission of the NDA for the PHP.

You can head over to the Delcath Systems CAPS page and let us know whether it will see further diminution of its shares after engaging in dilution. You can also add the drug delivery to your My Watchlist page to get all the Foolish news and analysis about this stock aggregated for you.

Swing for the fences

When seeking investments where no one else is looking, Motley Fool CAPS is the best place to start your own research. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made, all from a stock's CAPS page. 

Sign up today for the completely free service, and tell us whether these hidden stock opportunities will help us one-up Wall Street.