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.
A 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. Handsome is as handsome does. 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)
Return on Capital, TTM
Source: CapitalIQ, a division of Standard & Poor's; Motley Fool CAPS.
But just because these stocks are purring is no reason to pick them up 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.
The world's largest heavy-machinery manufacturer, Caterpillar, is placing a big bet on China to help it grow, as it represents its single largest market. But the economic engine there might be grinding to a halt, or a much slower pace, as it was also the only market for Caterpillar that had lower construction machinery sales in the third quarter. The brakes the Chinese are applying to the growth apparatus is having its desired effect. Fortunately for the heavy equipment maker, the rest of the developing world was still growing as sales were at or near record levels.
Caterpillar is set to report fourth-quarter results next week and analysts are looking for profits to rise 18% on a 25% increase in sales. That compares favorably to industry peer Deere
It's the developing world's need for infrastructure that seems to have informed the opinion of CAPS member Scorpioray, who is looking for the construction equipment manufacturer to outperform the market.
One of the few globally respected "big machine" brands. The world is due for some new roads, houses, offices … after four long years of austerity.
Add Caterpillar to your Watchlist to see if the road ahead will be paved with its equipment.
Veni, vidi, vici
The market researchers at Global Information estimate Medtronic
The catalyst for Novo, however, is the expanded use of diabetes drug Victoza, which accounted for 54% of total revenue growth as sales nearly tripled year-over-year. With solid patent protection and promising new pipeline candidates Degludec and DegludecPlus under consideration by regulatory agencies around the globe, it appears Novo might have the most to gain here.
Its near-single-minded focus on treating diabetes has CAPS member Anjaconda figuring the Danish pharmaceutical will have years of growth before it.
Diabetes products -- this is where it's at. Look at the stats and predictions for the disease in the coming years!
Count to 10
These three-digit stocks might be on their way to even higher valuations, but the smartphone revolution has the potential to upset everyone's game plan. Check out The Motley Fool's free report "3 Hidden Winners of the iPhone, iPad, and Android Revolution" and get access to detailed analyses of these outsized opportunities -- completely free.