7 Surprising Stocks

What do you do when a poorly regarded stock delivers outstanding short-term returns? Do you jump on the bandwagon, hoping to profit from the upward momentum, or do you remain on the sidelines awaiting the inevitable crash and burn?

This is one of the classic dilemmas of investing, and your answer will reveal a lot about your investing style. Our new Motley Fool CAPS investment research service has identified seven stocks that had been poorly rated by our community of investors, but then went on to yield remarkable returns over the past 30 days. Here's a list of seven outperforming one-star stocks (out of a possible five):

Not all of these companies remain one-star stocks. Openwave now has a four-star rating, while NutriSystem has improved to three stars. Moreover, a few of them have seen fundamental news: Research In Motion blew away growth expectations in its most recent earnings release, and Pier 1 announced the resignation of its longtime CEO and the end of its dividend. Whatever the reason, in a mere month, these companies have seen a dramatic turnaround in investor sentiment.

Will these seven companies continue their recent performance? Only time will tell. Do you feel our community of investors has rated these stocks unfairly? Join CAPS today, and rate these stocks yourself. You'll also be able to read timely analysis from our community and offer your own pitch for one of these stocks, if you're so inclined. It's entirely free, and it's the only place I know where the expression "the more the merrier" is actually true.

John Reeves does not own shares in any of the companies mentioned in the article, although he has rated NutriSystem an outperform in CAPS. Openwave Systems is a Motley Fool Rule Breakers pick. The Fool is investors writing for investors.