There are plenty of strategies for picking stock winners:
low P/E stocks, companies selling at a discount to their
future cash flows, and more. At the small cap stock picking
service
Motley Fool Hidden Gems
, even in this market the analysts are able to stay ahead
of the market by finding undervalued stocks that the market
and investors have ignored.
Yet what if we could find a way to whittle down our list
of prospects beforehand, finding those whose engines are just
getting warmed up?
Using the investor intelligence database of
Motley Fool CAPS, I screened for stocks that were marked
up by investors
beforetheir stocks began to move up over the past
three months in a market that moved strongly higher before
essentially trading sideways. My screen returned 132 stocks
when I ran it, no doubt reflecting the market's continued
recovery, and included these recent winners:
Stock
CAPS Rating
4/19/09
CAPS Rating
7/19/09
Trailing 13-Week
Performance
Popular (Nasdaq: BPOP)
**
***
111.7%
TerreStar (Nasdaq: TSTR)
*
***
53.1%
Buckle (NYSE: BKE)
**
***
1.8%
Source: Motley Fool CAPS; trailing
performance from July 24 to Oct. 19.
Buckle, in
fact, was previously picked as a stock
ready to runin July. So while this screen might tell us
which stocks we should have looked at three months ago, what
we want are
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,
sporting valuations lower than the market's average, and
whose price hasn't moved up over the past month by more than
10%.
Here are three stocks out of the 41 the screen returned
that are still attractively priced but which investors think
are ready to run today!
Stock
CAPS Rating
7/19/09
CAPS Rating
10/19/09
Trailing 4-Week
Performance
P/E Ratio
Enzo Biochem (NYSE: ENZ)
**
***
(3.7%)
11.3
Ecopetrol (NYSE: EC) Continued... |