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If all you have to go on is that someone at UBS likes Pfizer, how on earth are you supposed to estimate the quality of the analysis, much less decide whether you agree with the opinion?
You can't That's one of the reasons why we created Motley Fool CAPS, a 135,000-member database that ranks investors by how well their stock picks perform relative to the S&P 500. Those whose track record places them in the top 20th percentile are the cream of the crop. We like to call them "All-Stars."
Here are three stocks those expert investors love right now:
Company
All-Star Outperform / Underperform Ratings
Percent All-Star Bulls
Procter & Gamble (NYSE: PG)
1753 / 22
99%
Johnson & Johnson (NYSE: JNJ)
3049 / 54
98%
Activision-Blizzard
1360 / 31
98%
Source: Motley Fool CAPS and Yahoo! Finance.
Today, I'd like to give you more information about one of these names -- Activision.
As Fool co-founder David Gardner wrote for Motley Fool Stock Advisor members in 2002, "the Tony Hawk series of extreme skateboarding games ... [has] been a huge hit. The series has opened the way for other extreme sports action games, giving Activision a strong niche presence [that] has created nice sustainable profitability."
On the strength of its games' popularity, Activision grew earnings from $52 million to some $230 million over the next five years. The company recently acquired Vivendi's Blizzard, which augments its existing stable of Call of Duty and Guitar Hero -- the No. 1 and No. 2 console games, respectively -- with World of Warcraft's 11.5 million online subscribers.
David wrote again last fall, "Hot new releases in the top-selling Guitar Hero franchise will strike a chord with shoppers this holiday season, while new titles, additional revenue opportunities, merger boons, and Blizzard's superior margins will set the newly combined company on the path to a fast-swelling bottom line." David still thinks Activision's a great stock, and more than 1,000 CAPS experts agree.
While Activision is up more than 250% for Stock Advisor members, it isn't the only pick that's outperforming. Despite launching the service in the midst of the last bear market, the average Stock Advisor recommendation is beating the S&P by more than 40 percentage points. If you're looking for some more stock ideas, click here to see Fool co-founders David and Tom Gardner's favorite stock right now, free for the next 30 days. There's no obligation to subscribe.
Ilan Moscovitz owns shares of Google, a Rule Breakers selection. Chesapeake Energy and Pfizer are Inside Value recommendations Activision and GameStop are Stock Advisor selections. Johnson & Johnson and Procter & Gamble are Income Investor picks. The Fool owns shares of Procter & Gamble and has a disclosure policy.
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