Please ensure Javascript is enabled for purposes of website accessibility

10 Stocks to Shake the Market

By Rich Duprey - Updated Apr 5, 2017 at 7:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These were the markets biggest gainers on Monday.

In music they're called one-hit wonders, singers who belt out tunes but are never able to regain the magic of their big hit song. Think Norman Greenbaum's "Spirit in the Sky" or Brownsville Station's "Smokin' in the Boys Room." Monster hits never to be repeated.

We have seen similar one-hit wonders in stocks, too, like Pets.com or drkoop.com. Companies that burst on the scene -- many during the tech bubble heyday -- never to live up to the promise they held.

Whole lotta shakin' going on
While nostalgia's fun, "10 Stocks to Shake the Market" isn't about finding stocks that can't repeat their success; it's about looking at those that have made big moves and are likely to continue doing so.

To do that, we're looking at 10 stocks that made some of the biggest moves up over the past month. We'll then pair them with the ratings issued by our Motley Fool CAPS community. Those with high ratings have CAPS members believing they'll continue to outperform the market.

In the first 20 months since we first began tracking the collective intelligence at CAPS in late 2006, the data shows that newly minted five-star stocks offer the best opportunities for investors, while the lowest-rated companies fared the worst. Four-star stocks outperformed the market by seven percentage points, and five-star stocks -- top honors in CAPS -- did even better.

Stock

30-Day % Change

CAPS Rating

Hartford Financial Services (NYSE:HIG)

238.6%

**

ProLogis (NYSE:PLD)

201.3%

**

iStar Financial (NYSE:SFI)

191.5%

***

DryShips (NASDAQ:DRYS)

181.4%

**

Lincoln National (NYSE:LNC)

159.3%

***

Brinker International

157.4%

*

China Sunergy

156.3%

**

Coldwater Creek

150.4%

***

Lennar (NYSE:LEN)

144.5%

*

CIT Group (NYSE:CIT)

128.4%

**

With only a few of these stocks carrying even a three star rating, let's see what the CAPS community thinks about their recent advance.

DryShips
It's not the first time DryShips CEO George Economou has riled investors. A few years ago, he derided American investors as "the dumbest investors around," and late last year opted to venture into oil drilling without any advance notice to the public. Then, just a few short months ago, he announced he was going to purchase nine vessels owned by his privately held company, Cardiff Marine. At the time, DryShips shares were flying high, so the stock deal seemed very expensive. Now that shares have dropped, however, Economou said in an interview that he expects to cancel the deal. As he said in a Forbes interview, "If you don't like it, you don't have to be here. Sell the stock."

It was on the basis of the management integrity issues that CAPS member noexperience suggested back in October that DryShips was in for some stormy weather:

On the face of it this company has everything I love, deep value, deep pessimism, etc, but I am giving it a thumbs down because [the] management overrides deep value in the long run:

There is so much value out there at the moment there is no need to waste capital on suspect players that view the equity markets as an easy mark (which we are).

CIT Group
Grasping at a lifeline tossed by the TARP bailout fund, CIT Group changed to a bank holding company and won access to $2.3 billion in government money in exchange for a preferred equity stake. CAPS member DrDinoTX thinks the commercial lender is now well positioned to capitalize on its middle market target audience:

This company has little exposure to the housing market (the sold their mortage assets several months ago). They are great position going forward as they are back to focusing on their core business (lending to middle market business).

Shake, rattle, and roll
With these stocks shaking the market this past month, it pays to start your own research on them at Motley Fool CAPS. 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.

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool’s own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Rich Duprey does not have a financial position in any of the stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

DryShips Inc. Stock Quote
DryShips Inc.
DRYS
CIT Group Inc. Stock Quote
CIT Group Inc.
CIT
Lennar Corporation Stock Quote
Lennar Corporation
LEN
$87.28 (3.57%) $3.01
The Hartford Financial Services Group, Inc. Stock Quote
The Hartford Financial Services Group, Inc.
HIG
$66.82 (1.61%) $1.06
iStar Inc. Stock Quote
iStar Inc.
STAR
$17.08 (3.45%) $0.57
Prologis, Inc. Stock Quote
Prologis, Inc.
PLD
$134.41 (1.14%) $1.51
Lincoln National Corporation Stock Quote
Lincoln National Corporation
LNC
$48.41 (3.40%) $1.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
373%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.