Tomorrow's Monster Stock

Stocks climbing to 10 times their original price are rare breeds. But they're not impossible to find -- especially when you have Fools for friends.

The market's best stocks include companies that have risen dozens of times in value by taking advantage of the market's weaknesses. These aren't penny stocks; they're viable companies with sound business prospects that are achieving phenomenal returns. Finding just one or two of these monstrously successful firms can help you establish a winning portfolio.

Stalking the monster
To find tomorrow's winners, we've enlisted the help of more than 180,000 monster trackers at Motley Fool CAPS. We've compiled a list of the most successful CAPS members, dubbed All-Stars, whose picks have doubled, tripled, or even quadrupled in price. Then we've plucked out some of their recent picks for stocks they find equally promising.

Score is by how many percentage points that pick is beating the S&P 500.

Of course, this is not a list of stocks to buy -- or, for those monster stocks that our CAPS All-Stars have already found, sell. Just consider them starting points for your own further research of extreme buying opportunities.

Scanning the market
Unlike rivals Hewlett-Packard (NYSE: HPQ) and Eastman Kodak (NYSE: EK), printer maker Lexmark International has sworn off the consumer market and focused its attention on enterprise-level printer sales. That's allowing it to eschew having to discount its products and should help bolster margins.

In its second-quarter results posted just this morning, profits rose 19% to $101.3 million even though hardware sales fell 9%, but that's a result of ending its consumer lines; overall revenues inched higher. Software and other revenue jumped 33%, reflecting the acquisition of Perceptive Software last year, and includes hardware spare parts and related service revenue, as well as software licenses, subscriptions, professional services, and maintenance revenue.

Printers might be the only thing that keeps Kodak alive, as its decision to pursue a role as a licensing agent is an iffy proposition. Lexmark seems to have a better focus on its future. CAPS member cibient thinks the printer maker looks like a good buy, particularly as its valuation is smudged from dropping 25% over the past three months.

Profitable old tech company, very good valuation here. This is not Kodak nor Xerox. Lexmark generates tons of cash and has Magic Formula characteristics. EV/FCF is below 4, EV/EBITDA at a low 2.58. Quick ratio is around 2. They have to be on a short list for a LBO or to be acquired very soon by another company like Dell.

Let us know in the comments section below or on the Lexmark International CAPS page whether you think it can copy its efforts going forward.

In search of Bigfoot
The high-stakes game playing out in D.C. over raising the debt ceiling is causing the dollar to crumble, oil prices to rise, the risk of default to go up, and the prospects for gold to shoot even higher.

The dollar fell against all 16 major currencies yesterday, and oil closed in on $100 a barrel again. Gold now trades at record levels north of $1,600 an ounce, as fears of default make it the go-to safe-haven investment. Silver hasn't come near to hitting its record highs again, but its price is moving up as well.

Instead of trying to figure out which gold player might be the better bet -- for example, whether Barrick Gold or Goldcorp (NYSE: GG) would offer the best returns -- it might be best just to buy a basket of gold stocks, or better yet, the SPDR Gold Trust, which actually holds gold bullion. Its shares trade 36% higher than they did a year ago, mimicking the rise in gold's value. CAPS member LibbyLoo00 thinks investors will continue to seek shelter in gold: "This is the haven everyone runs to when they feel insecure. I think there are more insecure times ahead."

You can follow along by adding this exchange-traded fund to your watchlist and see whether it remains a golden opportunity.

Delivering solid growth
Package-delivery service UPS reported higher profits in the second quarter this morning and reaffirmed its outlook for the rest of the year, but the market dropped the stock anyway on news that volumes for the third quarter are likely to slow down. UPS says the economy will have an impact on its results.

The lower stock price could present investors with an attractive entry point. UPS was able to raise prices without much blowback from customers, and its international business continues to expand as it adds even more flights to and from China. FedEx (NYSE: FDX) has achieved similarly strong results, and it's raised prices as well, resulting in increasing volumes, yields, and margins.

With almost 1,700 CAPS members weighing in on UPS's prospects, 87% think it will beat the broad market averages, while all 27 Wall Street analysts offering an opinion concur. Tell us on the UPS CAPS page whether you agree that it can still deliver the goods.

A chance for scary growth
It takes more than a few All-Star picks and a quick pitch to make buy or sell decisions, so start your own research on these stocks on Motley Fool CAPS and marvel at the range of opinions there.