5 More Unloved Growth Stocks

Ah, skepticism, how I love thee.

We rebel investors at Motley Fool Rule Breakers believe the multibaggers in the making, while not often cheap by the numbers, are always misunderstood. As such, they face extraordinary skepticism, which, in turn, makes them excellent value stocks.

More are out there. Each week, right here in this column, we'll hunt them down. Grab your keyboard.

What one stock can do for you
Really, it's worth your time. One home run stock can make all the difference to your portfolio.

Just ask David Gardner, captain of the good pirate ship Rule Breakers, who bought Amazon at a split-adjusted price of $3.24 a share in 1997. He's up more than 2,000% since.

That helped him to overcome stinging losses from Celera Genomics, Sirius Satellite Radio, and others to put up nine years of better than 20% average annual returns as the leader of the real-money Rule Breaker portfolio.

Let the haters be your friends
Today, David and his team still seek misunderstood growers. You can, too, with the help of our completely free-of-charge Motley Fool CAPS investor-intelligence database, which currently contains information on more than 4,700 stocks.

CAPS applies user input to rate stocks from one star (low) to five (high). Using CAPS, we're once again going to search for one- and two-star stocks that have at least 5% of their available shares sold short but are expected to grow their earnings by no less than 15% over each of the next five years.

Let's have the list
Now, with that preamble behind us, here are five unloved growth stocks:

Bear in mind that this isn't a list of recommendations. Instead, I offer these stocks as candidates for further research. But of these five, it's storage specialist Isilon that interests me most. Here's how CAPS investor ajfabb explains the thesis:

Isilon sells clustered storage systems based on its OneFS distributed file system. The company was founded by a couple of senior engineers at Real Networks (NASDAQ:RNWK), after they watched their customers suffer using traditional storage systems for non-transactional data (e.g. audio, video, photos). Compared to traditional storage architectures, Isilon clusters are extremely scalable and easy to grow, as well as robust and easy to manage ... Customers love it; they have a high reorder rate (61% Oct 06).

Intrigued? Do your own due diligence and then check in with thousands of other investors at CAPS. And, if you'd like, add your own commentary. You'll be helping your fellow Fools and testing your ideas at the same time. Click here to get started now; the service is 100% free.

See you back here next week for five more unloved growth stocks.

How great is growth? Ten of the dozens of stocks in the market-beating Motley Fool Rule Breakers portfolio have more than doubled. Care to find out what they are? Click here to get 30 days of free access to the service.

Amazon is a Stock Advisor pick.

Tim Beyers, who is ranked No. 2,554 out of more than 60,000 participants in CAPS, is a regular contributor to Fool.com and Rule Breakers. Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Click here for Tim's portfolio holdings and here for his thoughts about growth stocks. The Motley Fool's disclosure policy is your portfolio's competitive advantage.