Every investor's dream is to find tiny, little-known companies that will become the giants of the business world. Since 2004, the Motley Fool Hidden Gems service has sought out small-cap stocks with the potential to become leaders in their respective industries, and the picks that the service has recommended have outperformed the broader market by a substantial margin. Below, we'll show you how you can get access to Hidden Gems and its winning picks -- for a far lower cost than you'd ever think possible.
What makes Hidden Gems picks so successful
Motley Fool Hidden Gems focuses on finding stocks of companies that are currently small but have plenty of prospects for long-term growth over time. Each month, Hidden Gems members receive two stock picks from the service. In making its picks, Hidden Gems follows several guidelines that its team of analysts likes to see:
- Picks tend to have a market capitalization of less than $2 billion, giving them plenty of opportunity for capital gains potential.
- The service prefers to hold stocks for at least three years, with longer holding periods being even better.
- Stocks picks offer reasonable balance between solid return prospects and relatively modest levels of risk.
- The service recommends putting new money to work at least once per month.
With each pick, Hidden Gems members receive an investment thesis, an assessment of the stock's risk level, and general commentary on why the company looks attractive to the service's team of analysts. Even after the initial recommendation, Hidden Gems revisits its recommendations regularly, providing ongoing coverage that keeps investors up to date about each pick's prospects.
Investors also have ongoing access to the monthly Best Buys Now list. These small-cap stocks are Hidden Gems' top opportunities for investors with money to put to work now. The list gives Hidden Gems members an easy guide to building out their portfolio of small-cap stocks.
The true value of Hidden Gems picks
A look at the top picks from Motley Fool Hidden Gems shows some of its best success stories. Most people aren't familiar with TransDigm Group (NYSE: TDG), but the company has taken full advantage of the boom in the aerospace industry to supply some of the largest aircraft manufacturers with the vital parts and systems they need to meet the massive orders they've received from their customers. With exposure not just to the commercial airline industry but also to the business jet, helicopter, and freighter markets, TransDigm has tapped into demand from as many quarters as possible, and major acquisitions have broadened its product offerings to become an even more important part of aircraft manufacturing across the industry. Since Hidden Gems' recommendation in 2008, TransDigm has given investors a total return of almost 1,300%.
More of a household name, Under Armour (NYSE: UA) has also rewarded Hidden Gems shareholders, providing a total return well in excess of 1,000% since late 2009. The maker of athletic apparel has stood up to much larger players in the industry. Yet not only has it not backed down in the face of competition, Under Armour has moved to expand into more direct opposition, launching its own line of footwear and challenging established companies with lucrative endorsement deals of its own. Given the demographic trends toward healthier living and a greater emphasis on the clothing and accessories needed to maximize health, Under Armour has a lot of things going for it, and its growth is almost limitless.
Become a Hidden Gems member right now!
Best of all, right now, you can sign up for Motley Fool Hidden Gems at a special introductory rate. Take advantage of this offer and rather than paying our usual price, you'll pay as little as $53 per year. You'll then get immediate access to the service's latest stock picks as well as all the other resources that Hidden Gems offers to its elite group of subscribers.
If you want to find undiscovered companies with the most promising prospects, you know how important it is to act before the crowd does. That's why we've offered access to Motley Fool Hidden Gems at such a low price: to take away any reason for delay. Join the Motley Fool Hidden Gems community right now and find out how you can make the most from your small-cap stock portfolio.
The Motley Fool owns shares of and recommends TransDigm Group and Under Armour (A shares). 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. The Motley Fool has a disclosure policy.