Some stocks are one-hit wonders, making a big splash when they first appear and then quickly fizzling into obscurity or oblivion. But for other stocks, that initial big move is only a preview for even bigger and better gains to come.
Today, I've listed three stocks that made some of the biggest upward moves over the past month, despite the incredible volatility in the market, which I'll pair with the ratings issued by our Motley Fool CAPS community. The higher each stock's rating, the greater CAPS members' faith in that company's ability to keep on beating the market.
1-Month % Change
CAPS Rating (out of 5)
Barnes & Noble
Source: FinViz.com; 1-month % change from Oct. 14 to Nov. 14.
While you were out, the markets collapsed and may continue to do so as the impact of the U.S. credit downgrade filters through. So before we get shaken out again, let's see why the CAPS community thinks some of these companies might continue to outperform the market.
A mighty temblor
The market for hepatitis C therapies is scorching right now, with Pharmasset and its interferon-free treatment attracting the attention of Gilead Sciences
The global hepatitis market was valued around $5 billion in 2009 and could be worth as much as $15 billion by 2019. While the current standard of care is interferon-based therapies, it's a mixed bag, and there are significant side effects that make it a dicey regimen even for patients who respond well to it. While Roche bought out Anadys Pharmaceuticals for $230 million because its setrobuvir drug is being tested in combination with Roche's pegylated interferon treatment, the pharmaceutical giant is still pursuing development of an interferon-free hep C treatment. Abbott Labs also says its interferon-free treatment could achieve $2 billion in annual sales if approved for sale in 2015.
As I said, this is the space to be in now, but keep an eye on Pharmasset's buyout offer by adding the stock to your watchlist.
The road less traveled
It was a buyout offer causing Force Protection to propel forward like a rocket-propelled grenade.
But Force Protection's armored cars remain a highly sought-after vehicle, so General Dynamics figured bringing the program under its umbrella would offer it a measure of protection.
That might be why 93% of the CAPS members rating Force Protection thought it would exceed the returns of the broad indexes. Add the defense contractor to your watchlist, and let us know in the comments section below what you think the Defense Department's future budget will look like.
Does knowledge of the book market give Barnes & Noble and edge over Amazon.com
There are some people who won't give up a real book for an electronic one, and though you can order the real thing through Amazon, there's also something to be said for standing among the racks. I'm no Luddite, and I've bought books from Amazon before, but I generally still shop Barnes & Noble for most of my reading needs.
Like DVDs standing athwart the advance of streaming video, there may come a time when physical books are replaced by electronic versions. I don't think that time is soon, and Barnes & Noble will reap the rewards. That's why I've rated the bookseller to outperform the broad market averages. CAPS members are almost evenly divided on the question, though, with the broader community leaning in favor of its ability to beat the Street and the All-Stars tilted just so slightly against it.
Thentor is one of those who sees Amazon as just a more nimble rival that can outmaneuver the bookseller with its heavier footprint: "B&N is stuck in the stone age when it comes to inventory mechanics. I can't see how they'll compete with agile [Amazon], even with Nooks."
Shake, rattle, and roll
With these stocks shaking the market this past month, it pays to start your own research on them at Motley Fool CAPS. 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.
Fool contributor Rich Duprey holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Abbott Laboratories, Lockheed Martin, and General Dynamics. Motley Fool newsletter services have recommended buying shares of Amazon.com, Abbott Laboratories, and Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.