5 More Top Stocks

Give the gift of small-cap investing. It's a gift that keeps on giving. Why? Because...

1. Underfollowed small-cap stocks offer incredible rewards.

2. Wall Street is covering fewer stocks than ever before, making now a great time to start looking for mispriced small caps.

So it's more important than ever to refocus our efforts on finding the best small companies

Our methodology
Unlike Motley Fool Hidden Gems, where our team of just six analysts uses bottom-up, fundamental analysis to ferret out small-cap recommendations, this column uses our Motley Fool CAPS community-intelligence database, where the ideas of thousands of people help uncover promising stocks. The system, which is still in beta testing, asks investors to rate stocks either "outperform" or "underperform." In turn, each investor is rated, as is each stock.

The end result? While only larger companies such as Micron Technology (NYSE:MU) tend to have more than 20 or so analysts following them, CAPS harnesses the ideas of thousands to provide the "long tail" of the stock market with the same depth of coverage.

Drumroll , please...
Without further ado, here are five five-star CAPS stocks covered by few or no professional analysts.

As always, these stocks are offered not as formal recommendations, but rather as ideas worth researching further. That said, if you're interested, Ambassadors Group possesses a number of the traits we look for in promising small caps. It's growing quickly in a niche market, has a strong balance sheet, pays a dividend as a small cap, and insiders own more than 20% of shares.

If you'd like to learn more about these or any other undercovered small caps, start by reading through what other investors have to say about them in CAPS. Just click here to join the free beta test today.

Tim Hanson does not own shares of any company mentioned. The Fool's disclosure policy pities the fool who doesn't have a disclosure policy of his own.