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Stanley (SXE)

Technology stocks have fallen out of favor in the eyes of many stock market investors. But just because some tech stocks have had a rough go of it doesn't mean the whole technology sector is off limits. In fact, I own many technology sector stocks that are performing quite well right now–but this is because I select them based on earnings, not on the appeal of their gadgets.

Take, for instance, Stanley (SXE). It's not a "sexy" company, pumping out trendy devices that teens won't stop badgering their parents to buy. Instead, boring old Stanley provides computer support for the U.S. Department of Defense, as well as other federal government agencies.

But if you're a numbers guy like me, it's easy to get excited about SXE during earnings season. In its last quarterly report, Stanley put up revenue 29% better than its 1Q numbers for 2007. Operating income was up 42% year-over-year, and operating margins improved by more than 10%. Stanley's backlog of contracts was up 12% over last quarter, and double that of last year. All this helped the company post a 13% earnings surprise, shattering Wall Street expectations.

Maybe that's why this stock is up 78% in the last 12 months, and it's up more than 10% just from August 1 to this posting!

Don't get me wrong–I'm a huge fan of tech companies like iPhone-maker Apple (AAPL) and Blackberry-maker Research in Motion (RIMM). Together, the two companies have brought my Blue Chip Growth subscribers returns of more than 750% since I told them to buy this powerful pair. But not all high-tech stocks have to be gigantic in market size and make something trendy. The profits are just as big with the little guys!

Stanley is a quiet technology stock, but a great one. It's the lesser-known mid-cap and small-cap stocks like this that I point out to my Emerging Growth subscribers. I started this service nearly three decades ago, but have been refining the formula ever since to find emerging stocks poised for big future profits. Just last issue, I made some tremendous new changes to my stock-picking formula that will deliver four times the returns my previous methods did.

I promise that I only pick the very best stocks for my Emerging Growth subscribers. Stanley is one of them, and makes the cut under my strict new method that is specifically tailored for this tough market. But if you want to find out about the 40+ other stocks on the Emerging Growth Buy List, you have to sign up today! I'm so confident you'll cash in on my strategy that I'm extending you a no-risk trial for just $295, and you can get a full refund if you're not 100% satisfied with the service.

So what are you waiting for? Get my list of the future market leaders right now!

Pam T., 08.13.08:

Jana C., 08.13.08: