Ask cheapskate value investors to buy a stock that's achieved a new 52-week high and you'll get one of two responses:
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Hysterical laughter.
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Sudden nausea.
Pity them, Fool.
How many times has Google
Rocket stocks, not rocket science
Each weekday in this column, we'll enlist the more than 78,000 pro and amateur stock pickers in our Motley Fool CAPS community to find stocks that are still climbing. We'll start with The Wall Street Journal's 52-week high lists. But we'll focus our search on stocks expected to boost net income by at least 15% a year for the next five years, and whose CAPS ratings have at least two of the maximum five stars.
Here's what we've turned up today:
Company |
Closing Price |
CAPS Rating |
5-Year Growth Estimate |
52-Week |
---|---|---|---|---|
Yingli Green Energy |
$40.09 |
**** |
56.7% |
$10.48-$40.10 |
Suntech Power |
$87.20 |
**** |
44.5% |
$31.41-$88.65 |
BE Aerospace |
$53.72 |
***** |
29.0% |
$25.21-$54.09 |
optionsXpress |
$33.31 |
***** |
21.0% |
$20.78-$33.47 |
Murphy Oil |
$82.82 |
***** |
17.8% |
$45.45-$83.15 |
Our mostly small-cap list features some promising (though speculative) stocks. Yet these tiny titans can create astounding returns if they're bought before the market discovers them.
Let the sun shine
I marvel at aircraft interiors specialist BE Aerospace, which was one of the first growth stocks I found via CAPS. It's been a huge winner since.
With returns on capital reaching for the heavens, I believe it still can be:
Return on Capital |
Trailing 12 Months |
2006 |
2005 |
2004 |
---|---|---|---|---|
Return on capital |
10.9% |
7.8% |
5.4% |
4.5% |
I attribute those gains both to excellent management and intense global demand for executive jets, a trend that has given lift to Embraer
Perhaps Wall Street is looking at the same data? Some of the best pros in the business have recently rated the stock to outperform, including Bank of America Securities and AmTech Research.
But that's the Street. What would you do? Would you buy BE Aerospace at today's prices? Let us know by signing up for CAPS now. It's 100% free to participate.
I'll be back tomorrow with more rocket stocks.
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