Stocks climbing to 10 times their original price are rare breeds. But they're not impossible to find -- especially when you have Fools for friends.
The market's best stocks include companies that have risen dozens of times in value over the past decade. These aren't penny stocks; they're viable companies that have sound business prospects and achieve phenomenal returns every year. Finding just one or two of these monstrously successful companies can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's winners, we've enlisted the help of more than 135,000 monster-trackers at Motley Fool CAPS. We've compiled a list of the most successful CAPS members, dubbed All-Stars, whose picks have doubled, tripled, or even quadrupled in price. Then we've plucked out some of their recent picks for stocks they find equally promising.
|
Player |
Monster Stock |
CAPS Score |
Recent Stock Pick |
CAPS Rating (Out of 5) | |
|---|---|---|---|---|---|
|
100.00 |
Morgan Stanley |
263.06 |
Sonus Networks (NASDAQ:SONS) |
**** | |
|
99.99 |
Prudential Financial |
213.02 |
Navios Maritime (NYSE:NM) |
***** | |
|
99.98 |
Genworth Financial (NYSE:GNW) |
249.48 |
Force Protection (NASDAQ:FRPT) |
*** | |
|
99.54 |
The9 |
226.83 |
LHC Group (NASDAQ:LHCG) |
*** | |
|
99.52 |
TBS International |
489.74 |
Decker Outdoors (NASDAQ:DECK) |
** |
Of course, this is not a list of stocks to buy -- or, for those monster stocks that our CAPS All-Stars have already found, sell. Just consider them starting points for your own further research of extreme buying opportunities.
In search of Bigfoot
The loss of the $1.1 billion MRAP contract to Oshkosh (NYSE:OSK) is a bit of a blow to Force Protection, but it doesn't mean the military contractor has lost all growth opportunities. Just days after the MRAP award, Force Protection was given a $77 million contract for independent suspension kits for its Cougar MRAPs. Although that's a much smaller revenue stream, it highlights that the company's expertise is still essential and in demand.
Furthermore, there's always the possibility that Force Protection could be awarded a subcontract by Oshkosh for certain aspects of the MRAP build. With the stock sitting at 7.2 times trailing earnings and 8.5 times forward earnings, the market appears to be taking a very dim view of Force Protection's prospects. Yet there's $120 million in cash, no long-term debt, a new Kuwait-based logistics and service depot, and other business lines.
Some investors remain impressed with the company's ability to maintain a solid financial condition. Among them is CAPS member Man0fAdventure, who wrote just a few days ago, "Good balance sheet and at a good price due to a selloff for losing a contract to [Oshkosh]."
Without question, the 2,200-vehicle MRAP contract would have been a big boon to Force Protection's business, but the company is still expecting a stronger second half of the year because of its other lines of business.
It's been a tough month nonetheless for the companies making up the CAPS Defense sector -- they've lost about 12% on average this past month. They just haven't had it as bad as Force Protection, which has lost nearly 40%.
A chance for scary growth
It takes more than a few All-Star picks and a quick paragraph to make buy or sell decisions, so start your own research on these stocks on Motley Fool CAPS. You can read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made -- all from a stock's CAPS page. And while you're there, weigh in with your own thoughts on whether you think these are tomorrow's monster stocks.

