When a stock's share price is lower than a North Dakota thermometer in February, investors tend to give it the cold shoulder. But as the market warms to a stock's prospects, its price can heat up in a hurry. Alas, you can rarely tell that a stock is melting investors' hearts until after it's made that upward leap.
Taking the market's temperature But Motley Fool CAPS' proprietary ratings, aggregated from the opinions and accuracy of 135,000-plus members, offer a great way to monitor investor sentiment. Following a CAPS rating trend can help us determine the best time to invest. Let's look at previously rated one- or two-star companies that have recently enjoyed a bump in investor confidence and see whether they're truly heating up -- or headed back to the deep freeze.
Company
CAPS Rating (Out of 5)
Recent Price
EPS Estimates (Next Year-Year After)
Cardionet (Nasdaq: BEAT)
***
$16.94
$0.67-$1.26
Ciena (Nasdaq: CIEN)
$10.00
($0.73)-($0.11)
MCG Capital (Nasdaq: MCGC)
$2.46
$0.62-$0.63
NPS Pharmaceuticals (Nasdaq: NPSP)
$4.50 Continued...
Rich Duprey is a writer specializing in the stock market.
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