True penny stocks are a minefield, but small-cap copper beauties can be one way to easily double your money.
There are also those companies whose shares trade at the other end of the price spectrum. I call 'em "three-digit stocks," though if they're anything like Berkshire Hathaway, they can trade in the four-, five-, and six-digit range, too.
While a penny stock might not be a good buy simply because it's cheap, a three-digit stock shouldn't scare you away just because it carries a hefty price tag. Handsome is as handsome does, so we check in with the Motley Fool CAPS community to see which ones the investor-intelligence database sees as having the best chance of succeeding.
Below are a handful of these high-priced highfliers. Let's take a look to see if investors think they can maintain their lofty valuations.
|
Stock |
3-Digit Price |
CAPS Rating (out of 5) |
Return on Capital, TTM |
|---|---|---|---|
|
Atrion (NASDAQ:ATRI) |
$131.30 |
**** |
15.1% |
|
Companhia de Bebidas Das Americas (NYSE:ABV) |
$100.76 |
**** |
13.9% |
|
Mettler-Toledo International (NYSE:MTD) |
$100.43 |
***** |
16.9% |
Source: CAPS and Capital IQ, a division of Standard & Poor's.
High-falutin' honeys
Lost in all the chatter about profiting from "Obamacare" and the potential negative economic effects of a nationalized health-care system are those companies that will win regardless of which way the debate swings.
We may tend to look at whether UnitedHealth (NYSE:UNH) and Aetna (NYSE:AET) will be able to function alongside a government-run insurance plan (even if we're forced to buy their policies). Or we're dazzled by the gee-whiz technology Intuitive Surgical (NASDAQ:ISRG) brings to the operating room, and wonder whether hospitals will still be able to afford to buy these surgical assistance tools.
But there are some companies that seem destined to perform well no matter what. Medical device maker Atrion looks like one whose heart will keep on beating.
Earlier this summer, CAPS member hochnath discussed the rationale behind Atrion's success, now and in the future:
On that note it is not the high tech, cutting edge equipment that is going to have a robot replace someone's heart. Atrion makes things like the line that connects the IV bag to a person's arm, and catheters for patient use. So if you think about it, this company seems sort of boring, but that is what is great about it as well. There is only one way to get a person hydrated when they are unable to drink and that is through an IV, and the only way to get the IV fluid into a person is through Atrion's tube. It's genius.
This sounds like one of those boring, Peter Lynch-style stocks, though it doesn't necessarily carry the "eww" factor he often seeks. Hospitals are going to continue needing these essential products regardless of whether the government is running the hospital or Tenet Healthcare (NYSE:THC) remains in charge.
Atrion is a hidden company, followed by only one analyst and attracting just over 200 members on CAPS. I've rated the medical supply specialist to outperform the market on its CAPS page, but I encourage you to join me there and have your say.
Count to 10
These three-digit stocks might be on their way to even higher valuations. That's why it pays to start your own research in 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.
Want help finding your own three-digit darlings? Join Fool co-founders David and Tom Gardner at Motley Fool Stock Advisor as they search the market for stocks enjoying not only a triple-digit price tag, but the potential to double, triple, and even quadruple in value over time.
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