Sadly, there's no such thing as an ultimate buy signal when it comes to investing in stocks. Identifying companies with the wind at their back takes time, patience, and a good dose of due diligence.

There is, however, an easy way to increase your odds of finding the stocks that will beat the market. At Motley Fool CAPS, the Fool's 110,000-member investing community, we've found that five-star stocks, as a group, substantially outperform the broader market -- to the tune of 12 percentage points on an annualized basis from November 2006 to July 2008.

In order to fully capture the upside potential of those five-star stocks, it makes sense to identify them as soon as they achieve five-star status. Fortunately, our CAPS screener now makes that possible. Below, for example, is a list of companies that have recently been upgraded to five-star stocks. These stock ideas are only a starting point, of course. Be sure to join us on CAPS to dig in even further.


All-Stars Saying Outperform

Andarko Petroleum (NYSE:APC)

420 / 431

Deere (NYSE:DE)

591 / 608

Dow Chemical (NYSE:DOW)

324 / 347

Linear Technology (NASDAQ:LLTC)

92 / 95

ON Semiconductor (NASDAQ:ONNN)

70 / 74

Suntech Power (NASDAQ:STP)

914 / 945

Walgreen (NYSE:WAG)

348 / 370

Data from Motley Fool CAPS, July 31, 2008.

Join us on CAPS to learn more about these and countless other interesting stock ideas.

Ilan Moscovitz doesn’t own shares of any companies mentioned in this article. Dow is an Income Investor recommendation. Suntech Power is a Rule Breakers pick. You can learn more about The Motley Fool’s disclosure policy here.