3 Stocks Ready to Roar

There are plenty of strategies for picking stock winners, from finding low P/E stocks to seeking companies selling at a discount to their future cash flows. At the small-cap investment service Motley Fool Hidden Gems, even in this market, the analysts are able to stay ahead of the pack by finding undervalued stocks that Wall Street and investors have ignored.

But what if we could whittle down our list of prospects beforehand, to find those whose engines are just getting warmed up?

Using our investor intelligence database at Motley Fool CAPS, I screened for stocks that were marked up by investors before their share prices rose over the past three months. My screen returned 47 stocks when I ran it, no doubt reflecting the market's continued recovery during that time, and included these recent winners:

Source: Motley Fool CAPS Screener; trailing performance from March 12 to June 7.

Amerisource Bergen, in fact, was previously picked as a stock ready to run just this past January. But while this screen might tell us which stocks we should have looked at three months ago, we'd rather find the stocks that we ought to be looking at today. I went back to the screener and looked for stocks that were just bumped up to three stars or better, sport valuations lower than the market's average, and haven't appreciated by more than 10% in the past month.

Of the 57 stocks the screen returned, here are three that are still attractively priced, but that investors think are ready to run today:

Source: Motley Fool CAPS Screener; price return from May 14 to June 7.

You can run your own version of this screen over on CAPS; just remember that the data's dynamically updated in real time, so your results may vary. That said, let's examine why investors might think these companies will go on to beat the market.

Cheniere Energy Partners
With natural gas supplies still in overabundance, Cheniere Energy Partners, a subsidiary of Cheniere Energy (NYSE: LNG), has a unique opportunity to use its Sabine Pass terminal to export supplies to global markets. Adding liquefaction capabilities to this receiving terminal could help natural gas companies open new markets, while introducing price stability and encouraging new exploration.

With 88% of the CAPS members rating the limited partnership to outperform the broad market averages, it would seem they would agree. You can supply your own outlook on the natural gas markets on the Cheniere Energy Partners CAPS page.

Ford
With General Motors racing ahead to become the No. 1 car-selling company in the U.S. again, is Ford stumbling even before it regains its footing? I don't think so. Ford is forecasting solid profits for 2010, after just hitting profitability last year. This is all ahead of schedule, and it shows the firm foundation on which the company rests.

CAPS member ZZR09 goes so far as to call Ford the true American car company. Not that such a moniker will stop it from making forays north of the border. Ford will be opening a bank in Canada to better provide dealer and customer financing there, while also selling guaranteed investment contracts to institutional investors.

Ford's seeing better times ahead; it was the top automaker in Canada last month. In contrast, Honda (NYSE: HMC), which didn't offer the same types of discounts the other car companies did, saw sales plummet 26%.

Fuel Systems Solutions
Tying natural gas and automobiles together, Fuel Systems Solutions makes components that allow cars to run on natural gas. Like industry peer Westport Innovations (Nasdaq: WPRT), Fuel Systems Solutions stands to gain ground as automakers offer more natural gas vehicles. Ford, for example, announced it would soon offer engines for its F-450 and F-550 pickup trucks that ran on natural gas or propane.

While CAPS member SpartanMAC would like to see Fuel Systems' management more closely aligned with outside shareholders, he thinks there's good growth and profitability here:

Solid projected growth. This company also shows strong book value growth in the past. I would like to see more insider ownership. The profit margins for FSYS are much higher than its industry peers. Great ROE / ROI.

Three for free
Are these companies still a good value, ready to make their move? I'm heading over to CAPS to mark them to outperform the broader averages. If you agree, join me there, or let us know in the comments section below whether you think these or any other stocks are starting to rev their engines.