Wall Street's Best Hidden Stocks

When asked for the secret of his success, baseball player Wee Willie Keeler replied, "Hit 'em where they ain't." What worked for Willie at the plate applies equally well in investing. 

Seeking stocks that others ignore, shun, or simply forget gives individual investors like you an edge over the professionals. When Wall Street turns a blind eye, you have a chance to get in before these stocks get discovered -- or rediscovered -- and start taking off. 

Below, we'll check out companies with only a handful of analyst coverage, then pair our list with the opinions of the Motley Fool CAPS community. A stock that garners CAPS' top ratings, but hasn't yet caught analysts' attention, could be your next home run investment. 

Source: Yahoo! Finance; Motley Fool CAPS; NA = not available.

Remember, without analyst support, you'll have to do your own scouting to see whether these stocks deserve a spot on your portfolio's roster. Don't just buy or sell them based solely on their appearance here. 

Hiding in plain sight
iGo makes laptop chargers and universal power adapters for mobile electronic devices. With Apple expected to sell tens of millions of new iPhones and iPads next year, iGo's new Apple-certified wall and car chargers should help it boost revenues above those its relationship with RadioShack (NYSE: RSH) brought in its latest quarter. And a deal with Texas Instruments (NYSE: TXN) to jointly develop custom integrated circuits is icing on the cake, according to CAPS member TechSci.

iGo, Inc. announced a collaboration with Texas Instruments on Nov. 4th, 2010 to develop a chip using iGo's green technology to be used in millions, possibly billions of devices to reduce vampire power. OEM deals with the chip could propel iGo (IGOI) stock to record highs. This is on top of increasingly more positive company parameters.

Though iGo is still relatively undiscovered in the CAPS community (fewer than a dozen members have rated it), those who have rated it are unanimous in believing it will outperform the broad market averages. If you think the company is too new for your portfolio, add it to your watchlist and have all the Foolish news and analysis gathered for you in a single place.

All charged up
Investors have been excited about the possibility that pSivida's largest shareholder, Pfizer (NYSE: PFE), may want to scoop it up, particularly because of the attention that Iluvien is getting. The Food and Drug Administration recently gave pSivida a priority review of Iluvien, a sustained-release treatment for diabetic macular edema, or DME, and the company was awarded two grants for the drug worth almost a half-million dollars.

A decision from the FDA is due by the end of the month. If Iluvien is approved, pSivida would get not only a $25 million milestone payment, but also 20% of the profits on its sales from partner Alimera Sciences. That would likely be no small amount, because pSivida officials say that more than 1 million people in the U.S. have DME.

Yet there are a number of companies racing to get treatments approved for back-of-the-eye diseases, including Genentech, Allergan, and Regeneron Pharmaceuticals (Nasdaq: REGN).

CAPS member jacketfan61 says that if Pfizer doesn't buy pSivida out, it's going to do all it can to support it.

I've been in this stock since it was under $1. Have watched it carefully and knew with the backing of Pfizer, this medication would take this company to new heights. Wouldn't be surprised to see Pfizer absorb the company.

Let us know on the pSivida CAPS page what you see for this biotech.

A utility player
Despite its stock going into free fall, tubular steel producer WSP Holdings has remained a CAPS favorite. Maybe it's because of China's potential, but things started to unravel last year when oil prices remain depressed, and then China and the U.S. got into a trade spat and we imposed higher tariffs on its products. Though oil prices are recovering,  climbing to more than $90 a barrel -- WSP Holdings' tubular products are for the oil and gas industry -- the stock is down 66% in 2010.

Yet 95% of the more than 450 CAPS members who have rated WSP Holdings believe it can turn things around and outperform the broad market averages. With China trying to rein in inflation, analysts expect steel exports will remain under pressure, particularly as inflation, trade disagreements, and an overvalued currency affect steel prices.

Give us your take on the WSP Holdings CAPS page.

Swing for the fences
When you're searching for investments where no one else is looking, Motley Fool CAPS is the best place to start your research. 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. 

Sign up today for the completely free service and tell us whether these hidden stock opportunities will help us go one up on Wall Street.