5 Stocks Bucking the Downtrend

Even on the market's worst days, buyout news and other short-term forces can send individual stocks up by 10%, 25%, even 50%.        

For example, shares of Origin Agritech (NASDAQ:SEED) sprang to life a couple of weeks ago, doubling in one day after the company received government approval of its genetically modified corn seed.

But beyond less-predictable events like that one are stocks with fundamentally compelling reasons for recent momentum. The trick is to find those stocks. That's where Motley Fool CAPS comes in.

The story behind the story
CAPS is no crowd of lemmings. Its best-performing members' opinions do more to shape each company's rating than the picks of their poorer-performing peers. Let's use the collective wisdom of more than 145,000 CAPS members to filter out the noise and find companies offering strong momentum.

We'll use CAPS' handy stock screening tool to quickly zero in on companies with a stock price increase of at least 25% in the past four weeks, a market cap of greater than $100 million, and a beta of less than 3. Below is a sample of stocks that our screen returned. If you'd like, run this screen yourself -- just keep in mind that results may change as the market does.

Source: Motley Fool CAPS. Price return from Nov. 6 through Dec. 4.

China Green Agriculture
Chinese organic fertilizer supplier and Motley Fool Global Gains pick China Green Agriculture is benefiting from China's push toward green technologies. Other fertilizer stocks like Agrium (NYSE:AGU) and PotashCorp (NYSE:POT) have produced bumper-crop gains this year, but China Green Agriculture has been on an even more impressive tear. It recently reported fiscal first-quarter 2010 sales that grew 27%, with a 50% jump in net income.

China Green Agriculture has been reaping the benefits of more high-end products, like its highly concentrated fertilizers. These pricier items have helped expand its already industry-leading margins; gross margin grew to 62% from 56% last year, and operating margin increased to 55% from 48%. The company has also increased its capacity recently, and raised its full-year guidance in anticipation of strong sales.

What was not too long ago a little-known stock has recently gained approval for listing on the New York Stock Exchange, and many CAPS members see plenty of future promise in the company. Nearly 96% of the 571 CAPS members rating China Green Agriculture expect it to outperform the market.

Jaguar Mining
Similar to other gold miners such as Yamana Gold (NYSE:AUY), Jaguar Mining has been enjoying the rising price of gold, outperforming the overall market this year. The unhedged producer recently reported a 36% increase in third-quarter gold sales revenue. Production rose 19%, while its average sales price jumped by more than $100 per ounce. The company acquires, develops, and operates properties in Brazil, where it's been investing in expansions and acquisitions, with the goal of becoming one of the country's largest midtier producers. It recently completed its acquisition of the Gurupi Project from a subsidiary of Kinross Gold (NYSE:KGC), and it's on schedule with its Caete project, its third major project. Today, close to 94% of the 334 CAPS members rating Jaguar Mining are bullish.

And you?
What's your story? Whether you buy the tale of a stock that's soaring or souring, your own research is more important than collective opinions. But these collective opinions can make your due diligence a whole lot easier.

Add your take on these or any of the 5,300 stocks that our 145,000-plus members have covered in Motley Fool CAPS. It's totally free to be a part of the community, and the payback is more than worth it.