3 Stocks Shaking the Market
Some stocks are one-hit wonders, making a big splash when they first appear, 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, we've listed three stocks that made some of the biggest upward moves over the past month, despite the incredible volatility in the market, which we'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)
|Universal Display (NAS: PANL)|
|STAAR Surgical (NAS: STAA)|
|Motorola Mobility (NYS: MMI)|
Source: FinViz.com; one-month % change from June 24 to July 25.
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
Universal Display is looking like the momentum stocks of the late-'90s tech boom. Shares of the OLED screen outfit are soaring on the basis of LG Electronics announcing it would be offering OLED-equipped smartphones in mid-September, Samsung agreeing to a long-term supply deal for Universal's technology, and Corning (NYS: GLW) saying it will be focusing more of its resources on OLED glass than on LCD.
The latter point is important, as LCD televisions have seemingly hit a wall. The market analysts at Quixel Research say unit sales were essentially flat in the second quarter and up just 4% from the first, while revenues fell as cut-rate pricing hurt growth. OLED sales haven't been any better, and were actually much worse -- down 69% sequentially and 78% year over year -- as pricing hasn't narrowed anything like LCD pricing has.
Yet with companies committing more resources to OLED technology, that could change, spurring greater adoption. Both LG and Samsung will also begin producing more OLED sets and Corning will be converting Asian LCD factories to OLED ones.
CAPS member styilmaz1980 is looking for these kinds of agreements to give Universal Display an even larger share of the market. "Recent business agreement with Samsung to use its OLED technology for state of the art displays for TV's and other electronic items."
You can add the screen maker to your watchlist if you'd like to get a better picture of what it can do in your portfolio.
Got my eye on you
Minimally invasive ophthalmic products manufacturer STAAR Surgical has its eye on even greater heights after reporting that revenues jumped 19%, with sales of its implantable lens soaring 41% from last year. It made the cut after raising its outlook for the rest of the year.
Like LASIK surgery, its Visian Implantable Collamer Lens treatment corrects myopia, but unlike the more well-known treatment, it is reversible. But most of STAAR's revenues come from overseas markets, with just 22% originating in the U.S. Corrective eye surgery continues to be a competitive market, with Abbott Laboratories (NYS: ABT) , Alcon, and Bausch & Lomb being larger rivals.
STAAR is flying below the radar of much of Wall Street as well as Main Street, but those who've eyed the company see it outperform the broad indexes. It's caught the eye of 91% of the CAPS community rating it, but tell us in the comments section below or on the STAAR Surgical CAPS page if you think it can see its way to additional growth.
Should I stay or go?
Handset maker Motorola Mobility is being gobbled up by Google (NAS: GOOG) in a massive $12.5 billion deal as the search king seeks to protect and expand its Android operating system platform. Yet for Motorola, it was serendipitous for Google to come along when it did. Apple (NAS: AAPL) will be coming to market with its highly anticipated iPhone 5, which could alter the mobile landscape. Of course, what Motorola also brings to the table is a bevy of patents. Google, having been beaten out for bankrupt Nortel's patent portfolio, will find in Motorola's IP the cudgel it needs to get back in the game.
CAPS All-Stars were already on the scent of Motorola's value, as they unanimously expected the stock to beat the market averages. Does the timing of the deal make sense to you? Give us your thoughts on the Motorola Mobility CAPS page if you agree the handset maker got while the getting was good.
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.
At the time this article was published Fool contributor Rich Duprey holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple, Abbott Laboratories, and Google. Motley Fool newsletter services have recommended buying shares of Corning, Apple, Google, Abbott Laboratories, and Universal Display. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can shake, rattle, and roll the Fool's disclosure policy, but it still won't break.
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