2 Stocks Approaching Greatness
For every stock out there screaming, "Buy me," others simply give us a nudge and a nod. While all the attention might be focused on their five-star peers, we can sift through Motley Fool CAPS to find four-star stocks giving us the "high sign" they're approaching greatness.
These opportunities -- including familiar names and beaten-down companies -- rank higher than most of the other 5,400 starred companies, and it pays to investigate their potential. For consideration today, I have a pair of stocks on their way to fame:
As the 180,000-plus CAPS members have chosen these companies as less obvious sources for tomorrow's great buys, let's see why they might merit your attention.
Although I think the $1.2 trillion in across-the-board spending cuts are a good place to start when they begin in 2013 as a result of the so-called supercommittee's failure to reach a deficit reduction agreement, there's also little argument that some industries would feel a significant impact -- should the politicians actually allow it to happen. The cynic in me just doesn't see that happening, though.
Defense spending has obviously been the topic of primary consideration in the debate, which would face some $600 billion in cuts over 10 years. That will have contractors like Lockheed Martin (NYS: LMT) , General Dynamics (NYS: GD) , and Boeing going to bat for their individual programs talking about the jobs they represent.
At least for Boeing, the commercial side of its business seems to be taking flight as it booked two deals that could be worth as much as $61 billion if all the planes and commitments are realized. CAPS member MajorBob04 sees Boeing flying high for several years as a result of the contracts, which seems to jibe with the broader CAPS community as 91% of those rating the airplane builder believe it will outperform the broad market averages.
Tell us in the comments section below or on the Boeing CAPS page whether the defense spending cuts will eat away at the aircraft shop, and add it to your watchlist to see its progress.
Cancer researcher YM BioSciences finished enrolling patients in phase 2 trials for its JAK1 and JAK2 Inhibitor CYT387 that has been receiving positive results so far. The drug is taken once daily to reduce spleen size, treat symptoms, and reduce transfusion dependence in patients with myelofibrosis.
The stock has lost some steam as Incyte (NAS: INCY) just got approved for its twice-daily therapy Jakafi, making it the first drug approved to treat myelofibrosis. It also happens to be the first drug Incyte's gotten approved. While first-to-market status can be important, particularly as Incyte has Novartis (NYS: NVS) helping it market its treatment outside the U.S., potentially better efficacy of CYT387 and an easier dosing regimen could quickly eat into any share Incyte gains.
Updated data from the ongoing phase II trial will be presented at ASH in early December, and strong results could have a very dramatic effect at the current depressed share price. YMI is looking like a potential real buy later this month as long as the world's economic cheese doesn't completely fall off its cracker.
Give us your thoughts on the YM BioSciences CAPS page on the recent share price weakness, then add the stock to the Fool's free portfolio tracker to see if it can bounce back.
A great opportunity for you
Investor sentiment suggests these four-star investments still seem to be on their way to five-star greatness, but it pays to start your own research on these stocks on 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.
Sign up today for the completely free service and let us hear what you have to say about the great and almost great companies that interest you.
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 General Dynamics and Lockheed Martin. Motley Fool newsletter services have recommended buying shares of Novartis. 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. The Motley Fool has a disclosure policy.