Some stocks are one-hit wonders, making a big splash when they first appear, then quickly fizzling into obscurity or oblivion. But for other stocks, that initial big move is only a preview for even bigger and better gains to come.
Today, we've listed three stocks that made some of the biggest upward moves over the past month, then paired them with the ratings issued by our Motley Fool CAPS community. The higher each stock's rating, the greater CAPS members' faith in that company's ability to keep on beating the market.
Krispy Kreme Doughnuts
Level 3 Communications
^ From April 1 to May 3.
While you were out, the market has plunged below the 12,000 level and soared back up. Before we get shaken out again, let's see why the CAPS community thinks some of these companies might continue to outperform the market.
A mighty temblor
Sweet-treats maker Krispy Kreme Doughnuts put on a spectacular earnings show last quarter, ringing up higher sales, widening margins, and generating lots more free cash flow. In fact, over the past year, as GAAP earnings have grown fivefold, owner's earnings have doubled. At least the numbers are moving in the right direction and the dark days of yesteryear seem a distant bad memory.
Dunkin' Donuts can't be too happy about the improvement as it plans its own IPO for later this year. With almost 6,800 locations, mostly in the Northeast, it wants to double that number and challenge Starbucks
CAPS member wfreese thinks the right-sized doughnut shop will attract more customers and more investors going forward:
The 25% share gain following KKD's Q1 earnings announcement was not a flash in the plan. They've downsized and transformed their operations, have a business model that now works and are poised for significant, profitable growth.
Keep track of developments by adding the stock to your watchlist.
Get some spine
With two cancer therapies ready to go to the next stage, drug developer Oncothyreon raised $43 million to fund their development. Stimuvax, a vaccine for patients with non-small cell lung cancer, is partnered with Germany's Merck KGaA, while PX-866, a PI-3 pan-isoform irreversible kinase inhibitor, is currently unpartnered. CAPS member siliconvalleyboy is looking for good results from PX-866 and figures that when the approval goes through, Oncothyreon's stock will take off:
Very compelling early data from phase II. Existing trial is continuing and data is expected late Q2. Very strong pipeline ahead of them. 1 small molecule with very good chemistry AND a more powerful version of the existing drug, this new drug is not partnered and its value will go up tremendously with the approval, if and when it happens.
That would be a natural occurrence, and many people who talk about Oncothyreon mention Dendreon
Tell us in the comments section below or on the Oncothyreon CAPS page if you agree it is the next Dendreon.
Should I stay or go?
Remember the brouhaha over iPhone bandwidth hogs when AT&T
While an advocacy group filed a complaint against Verizon for its role, the issue of bandwidth remains central to the investment thesis at Level 3 Communications. With the proliferation of smartphones and now tablets, the need to provide as big a pipeline as possible is essential and that underscores the growth catalyst behind the network's backbone. As CAPS member bevod notes, "Everyone needs more bandwidth."
With the infrastructure in place, CAPS member asmorris100 says Level 3 will deliver the goods not only for carriers, but for investors as well:
Demand for broadband is only increasing and Level 3 has the goods to deliver. Infrastructure is in place and long time debt is slowly being cut down, while at the same time LVLT is bringing in new customers. The future is bright.
Tell us on the Level 3 Communications CAPS page if you think it can carry the weight of the network on its shoulders.
Shake, rattle, and roll
With these stocks shaking the market this past month it pays to start your own research on them at 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.
The Motley Fool owns shares of Starbucks. Motley Fool newsletter services have recommended buying shares of Starbucks and AT&T. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Fool contributor Rich Duprey does not have a financial position in any of the stocks mentioned in this article. You can see his holdings here. You can shake, rattle, and roll The Motley Fool's disclosure policy, but it still won't break.