The correct answer is      (D.) Hansen (HANS)

The tale of beverage company Hansen (HANS) is a shining example of why R&D is often referred to as the lifeblood of a company. The company, which dates back to the 1930s, fell on hard times in the late 1980s and was eventually forced into bankruptcy. A small group of investors resurrected the brand and listed the company on the NASDAQ (Nasdaq: HANS). By the mid-1990s, HANS produced a variety of popular teas, smoothies and fruity concoctions.

Investors saw little promise in Hansen until 2002, when it introduced a 16-ounce energy booster packed with massive doses of caffeine and sugar. "Monster" swept through college campuses and sporting events around the country, and marketing reps sped up the rollout by handing out free samples at surfing competitions and other teen gatherings.

The results were dramatic. Annual sales doubled from $100 million before the launch to nearly $225 million in 2004. Revenues shot up another +85% the following year to $415 million, and then to nearly $700 million the next. Today, the company generates over $1 billion in annual revenues.

That top-line progress paved the way for explosive earnings growth, spiking profits more than 40-fold since 2002. The market responded with a standing ovation -- sending the shares on a wild +4,500% run over the past decade. From a low of around $4 in early 2004, HANS shares quickly zoomed past $80 in late 2005. And without back-to-back 2-1 and 4-1 stock splits along the way, the stock would price at about $240 today.

HANS is not an isolated example. Companies like Celgene (Nasdaq CELG), Bally Technologies (NYSE: BYI), and Research In Motion (Nasdaq: RIMM) have all invested many hard hours (and many millions of dollars) in new product development. In each case, shareholders have been rewarded with eye-popping four-digit returns.

It stands to reason that tomorrow's winners are on the cusp of similar breakthroughs today. And to find these future stars, there's no better place to begin looking than the research and development (R&D) department -- where talented professionals seek to commercialize new products (and services) or improve upon existing ones.

That's why StreetAuthority editor Nathan Slaughter and his staff classify R&D breakthroughs by their potential to shake the ground around them. By evaluating the propensity for incremental innovation, breakout innovation, and game-changing innovation, Nathan has uncovered two other companies that show particular promise. Covered in depth in his latest issue of the StreetAuthority Market Advisor, both boast double-digit profit margins as well as an opportunity to latch onto the companies that produce hot new products and hot new gains. To learn the names of these stocks, and to learn more about Market Advisor, please visit this link.