Penny stocks are one way to double your money, though it's fraught with risk, but there are equally shiny opportunities trading at the other end of the price spectrum, too. I call 'em "three-digit stocks," yet if they're anything like Berkshire Hathaway, they can trade in the four-, five-, and six-digit range, too.

penny stock might not be a good buy simply because it's cheap, and a three-digit stock shouldn't scare you away just because it carries a hefty price tag. Let's check in with the Motley Fool CAPS community to see which of the high-priced stocks below earn the greatest confidence from our investor-intelligence database:


CAPS Rating
(out of 5)

3-Digit Price

Return on Capital, TTM

Cerner (Nasdaq: CERN) *** $120.28 12.1%
Fossil (Nasdaq: FOSL) *** $105.28 25.9%
Precision Castparts (NYSE: PCP) ***** $156.63 14.2%

Source: Capital IQ, a division of Standard & Poor's; Motley Fool CAPS.

But just because these stocks are purring is no reason to jump into them blindly. Catching a tiger by the tail -- or a knife falling from on high -- can end up leaving you scratched and bleeding. That's why we recommend you use this list as a launch pad for your own research and analysis.

Highfalutin' honeys
As part of the recently passed health-care legislation, hospitals must move their medical records into the digital realm by 2015, or face reduced Medicare reimbursements. Among companies that might profit from this shift, Merge Healthcare (Nasdaq: MRGE) enables doctors to attach X-rays, MRIs, CT scans, and other medical images to digital records, while Allscripts Healthcare Solutions (Nasdaq: MDRX) and Cerner actually provide e-record services.

CAPS member troym72 says Cerner has a promising prognosis:

Industry leader. Beat earnings and raised 2011 guidance. Short term profit taking on the recent 11% jump will give way to steady gains as investors take notice of the future potential of Cerner.

Tell us on the Cerner CAPS page whether e-health records will pay off for investors and patients alike.

Time to go
Maybe it's a play on high-end luxury, since Tiffany (NYSE: TIF) soared higher after reporting a 26% jump in profits last week, but since Signet Jewelers also spiked, maybe it's more of an accessories play. That would explain why Fossil is also up strongly, though it made its big move before either of the other two.

I haven't worn a watch in years -- I can always check the time on my cell phone -- but apparently, there's renewed interest in the wristwatch as a fashion statement. Fossil is playing that trend well, well with sales in the last quarter up 37%, generating profits 30% ahead of Wall Street's forecast.

Fossil can offer ridiculously high-priced designer wrist candy with the best of the jewelers, but as CAPS member NEVERFADE notes, the company operates like a finely crafted Swiss timepiece when targeting the more affordable end of the market:

Entry level watch company that makes quality, good looking products in the low priced to mid priced ranges. Popular in the U.S. and in China. Great way to play emerging middle class worldwide.

If you've got the time, head over to the Fossil CAPS page and let us know whether you're watching this stock.

Triple-digit titans
A lot of Precision Castparts' operations have hinged on Boeing's (NYSE: BA) oft-delayed 787 Dreamliner. The company may be one of a number of parts suppliers who will follow Spirit AeroSystems in filing claims against the plane maker.

But CAPS member Vermilian thinks Precision's relationship with Boeing will continue to benefit the parts supplier, while its fastener business and cast parts line will enjoy higher demand from business jets:

As we come out of the recession the business jet industry will begin to heat up. This is a very cyclical industry that has fallen on hard times. Precision Castparts makes metal fasteners and cast parts for the aircraft industry. Look to companies like PCP to benefit as companies like Textron (owner of Cessna Aircraft) get back on track. Other companies like Boeing will be big customers of PCP as the dreamliner comes on board. Boeing also won a rather large military contract for tankers from the U.S. government.

See whether Precision Castparts catches a tailwind by putting the aircraft parts specialist on your watchlist.

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.