Volatile markets seem to be the norm these days, as stocks gyrate through ups and downs on a daily basis. But sometimes buyout news and other short-term forces can send individual stocks soaring by 10%, 25%, and 50% -- even on the market's worst days.
For example, shares of McAfee jumped 57% when it was announced that Intel would buy the company for $7.7 billion.
But beyond less-predictable events like that one are stocks with fundamentally compelling reasons behind a big move. 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. Here's an example of how we can use the collective wisdom of more than 165,000 CAPS members to filter out the noise and find companies with strong potential.
We'll use CAPS' handy stock-screening tool to quickly zero in on companies with a stock price increase of at least 20% in the past four weeks, a market cap of greater than $100 million, and a beta of less than three. Then we can use the insight of the CAPS investment community to add some context to these market movers.
Company |
CAPS Rating
|
4-Week |
---|---|---|
Akamai Technologies |
**** |
23.2% |
Silver Wheaton |
**** |
21% |
Netflix |
** |
23% |
Source: Motley Fool CAPS. Price return from July 30 through Aug. 27.
Akamai Technologies
While Akamai's competitor Level 3 Communications
Silver Wheaton
Silver stream company Silver Wheaton turned in another strong quarter recently in which it generated record earnings, a record volume of silver equivalent sales, and increased its operating cash flows by more than 150%. Despite its rich valuation, many CAPS members still see potential for growth with Silver Wheaton's interests in a number of growth prospects coupled with a bullish long-term outlook for silver. Barrick Gold's Pascua-Lama project is on track to begin production in 2013, and Goldcorp's
Netflix
Netflix has been pushing further into online streaming with its recent deal for premium movie content from Epix and its killer app for Apple's
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 5,400 stocks that our 165,000-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.