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Tuesday, October 20, 2009
Morgan Housel :: Townhall.com Columnist
Top-Rated Stocks Trouncing the Market
by Morgan Housel
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Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


No one has perfect foresight, but let's be honest: The market is full of people who, as Oscar Wilde would say, know "the price of everything and the value of nothing." Far too often -- over the past year, especially -- investors have been pitched sensational stock recommendations, only to be left high and dry as shares crumble.

I summoned our  Motley Fool CAPS community to point out a few four- or five-star stocks that have been going gangbusters in recent months. Some are still bargains; others are getting ahead of themselves.

While not formal recommendations, these three-month bloomers caught my attention:

Company

13-Week Price Change

Recent Share Price

Forward P/E Ratio

CAPS Rating   
(out of 5)

American Eagle Outfitters (NYSE: AEO)

38%

$19.62

19.24

***

Eaton (NYSE: ETN)

34%

$63.89

21.51

****

EMC (NYSE: EMC)

29%

$18.20

17.01

****

Foster Wheeler (Nasdaq: FWLT)

52%

$33.52

13.15

*****

Taseko Mines (NYSE: TGB)

55%

$2.77

N/A

*****

Under Armour (NYSE: UA)

33%

$31.04

32.33

****

Walgreen (NYSE: WAG)

35%

$40.37

14.68

****

Data from Motley Fool CAPS, and Yahoo! Finance as of Oct. 19.

You can rerun the CAPS screen I used by  clicking here.

A closer look at Eaton
Industrial manufacturer Eatonhas been on a rampage lately. After reporting better-than-expected earnings, shares jumped another 5.7% yesterday. How much longer can shares continue their upward trek? No one knows, but we're not afraid to throw out a few guesses.

First, know that Eaton's gains are purely a function of things becoming "less bad." While the recent earnings report got investors jazzed, results were still devastatingly bad compared to last year:

Segment Continued...

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About The Author

Morgan Housel is a Motley Fool contributor.

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