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 top ratings of four or five stars:

Company

Yesterday's Gain

Walgreen (NYSE:WAG)

9.24%

USG (NYSE:USG)

7.25%

Genco Shipping & Trading

6.81%

CVS Caremark

3.41%

Yamana Gold (NYSE:AUY)

3.18%

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

Our community of more than 140,000 CAPS Fools considers its high-star stocks the most likely to outperform the market.

Written in the (five) stars?
For example, 96.8% of the 555 All-Star members who've rated Walgreen have a bullish opinion of the stock. In February, one of those top Fools, my Foolish colleague Matt Koppenheffer (TMFKopp), explained why the drugstore giant seemed healthy enough to swallow: "There's reason to be nervous about competition heating up, but I like the chances that the company swims against the tide in this economy, and then benefits from the boomers for years after that. I've thumbed up [CVS Caremark] too, but I like [Walgreen] a bit more due to historical efficiency/profitability and a somewhat better balance sheet."

Walgreen is up 39% since that call. In fact, yesterday's market-bucking pop came after the company's quarterly results topped Wall Street expectations on a jump in prescription drug sales -- consistent with Matt's bull pitch.

The bullish lesson?
Let the (demographic) trends be your friend. By identifying excellent companies positioned to capitalize on powerful demographic tailwinds, you'll consistently have market-trouncing forces working in your portfolio's favor. As Warren Buffett recommends, "Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value."

And now for the losers ...
Of course, winning isn't everything in the stock market.

Here are five of Tuesday's biggest decliners with one- or two-star ratings:  

Company

Yesterday's Loss

Novavax (NASDAQ:NVAX)

6.58%

PMI Group

5.88%

Capital One Financial

3.84%

Annaly Capital Management

3.74%

Dell (NASDAQ:DELL)

3.19%

While yesterday's drop in highly rated Nokia (NYSE:NOK) may have caught our community off guard, low-ranked stocks are fully expected to fall hard.

Did CAPS call the fall?
Three weeks ago, for instance, CAPS member jackbot warned Fools of Novavax's flu-fueled stock price: "This year's pandemic has pushed [Novavax] up way too far. This is going to blow over just like every other pandemic scare. It could be good for a short term play, but I don't think there are too many ... left to buy much higher than this.

Following yesterday's drop, shares of the vaccine maker are already down 31% since that warning.

The bearish takeaway?
Never confuse an improving price for improving prospects. As long as a company's profitability remains a long-shot, short-term, speculation-driven run-ups can only be sustained for so long. As Buffett reminds us, "For some reason, people take their cues from price action rather than from values. ... The dumbest reason in the world to buy a stock is because it's going up."

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 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. USG, Dell, and Nokia are Motley Fool Inside Value picks. The Fool's disclosure policy is always the big winner.