Hey there, Fools. I've summoned our Motley Fool CAPS community once again to highlight a few of Tuesday's biggest winners among the stocks with a top rating of four or five stars.

Without further ado:


Yesterday's % Gain

Manitowoc (NYSE:MTW)


Deere (NYSE:DE)


Corning (NYSE:GLW)






There's a reason why I selected those notable gainers, as opposed to other winners making noise on Tuesday, like low-rated casino stocks MGM Mirage (NYSE:MGM) and Las Vegas Sands: Stocks go up all the time, but unless you were able to predict the pop, what does it matter?  

Our community of more than 135,000 CAPS Fools considers its "high-star" stocks the most likely to outperform the market.

Written in the (five) stars?
For example, 99.4% of the 674 All-Star members who've rated Manitowoc have a bullish opinion of the stock. In April, one of those top Fools, bclowemp, explained why the heavy-equipment maker would eventually get over its buyout blues:

Bad purchase of Enodis but strong brands. ... Food service will pick up first followed by cranes but they have very strong brands in both areas. Enodis is a good company too, but hopefully Manitowoc learned their lesson about buying high.

Following yesterday's pop, shares of Manitowoc are already up 70% since that call.

The bullish lesson?
Always be on the hunt for stocks priced for imperfection. It's virtually impossible to call a stock's "bottom," but if you're confident that the worst case is already baked into the price, there's a good chance your investment will turn out well over time. As legendary value investor Sir John Templeton famously said, "The time of maximum pessimism is the best time to buy."

And now for the losers ...
Of course, winning isn't everything in the stock market. Here are five of Tuesday's biggest decliners with a one- or two-star rating:  


Yesterday's % Loss



Cedar Fair


Pacific Sunwear of California


TJX Companies




While yesterday's drop in five-star trash specialist Waste Management (NYSE:WM) may have caught our community off-guard, low-ranked stocks are fully expected to fall hard.

Did CAPS call the fall?
In late January, for instance, CAPS member js2776 commented on Geron's go-ahead from the Food and Drug Administration to begin testing on people using embryonic stem cells:

I can only imagine how great this news is for those suffering from catastrophic injuries, with hope that stem cell research moves forward. That said, despite my sincerest hope that Geron is on the right track, the stock price must fall back to earth ... for now. Like I said, barring a miraculous break through as soon as they begin trials, it will be a while before this stock deserves to trade up.

Shares of the small-cap biotech are down 20% since that warning. In fact, yesterday's drop came after the FDA placed a clinical hold on its Investigational New Drug application for a spinal cord injury therapy.

The bearish takeaway?
Always invest with a healthy dose of skepticism. There are certainly companies out there with the "next big thing" in their pipeline, but unless you have exceptional insight in identifying them, there's really no need to take such long-shot bets. As Warren Buffett reminds us, "Sound investing can make you very wealthy if you're not in too big of a hurry. And it never makes you poor, which is even better."

The final Foolish move
Investors often focus strictly on stock price movements without realizing that developing a proper stock-picking process counts most.

Over at Motley Fool CAPS, thousands of investors are Foolishly sharing insightful investment tips to help, above all else, identify tomorrow's big movers. Over time, consistently reverse-engineering winning -- and losing -- stocks will help you become a more Foolish investor.

Log in to CAPS today and start participating. It's absolutely free -- and a lot of fun!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. NVIDIA is a Motley Fool Stock Advisor selection. The Fool's disclosure policy is always the big winner.