Welcome back to another week of hot stocks. We're taking a look at the three best-performing industries and your favorite long and short candidates in each, according to Motley Fool CAPS.

This time, I'll spare you a lengthy definition of CAPS. All you really need to know is that there are more than 16,000 stock pickers rating companies in the database, which creates common "tags" for industries.

CAPS tracks the best-performing sectors over varying periods. For us, 30-day returns matter most; we're seeking the hottest stocks right now.

Now, with that preamble behind us, CAPS says the best three industries are:

  • China, which includes 29 stocks whose primary operations are in ... well, you know. Stocks in this sector have advanced 26.8% over the past 30 days.

  • Software, which includes firms that write the code needed to make computers run. Stocks in this sector have advanced 20.9% over the past 30 days.

  • Residential construction, which includes roughly two dozen homebuilders. Stocks in this sector have advanced 18.9% over the past 30 days.

According to you, our Foolish readers, the best stocks in these industries to own now -- i.e., those with three or more stars in CAPS -- are:

Company

CAPS Star Rating

No. of CAPS Ratings

Bullish CAPS Ratings

Bull Ratio

Mindray Medical (NYSE:MR)

5

190

188

98.9%

Walter Industries (NYSE:WLT)

5

575

565

98.3%

China Mobile (NYSE:CHL)

5

345

339

98.3%

InfoSys Tech. (NASDAQ:INFY)

5

258

252

97.7%

PetroChina (NYSE:PTR)

5

294

286

97.3%

Source: Motley Fool CAPS

And your favorite short candidates -- i.e., those rated with one or two stars in CAPS -- are:

Company

CAPS Star Rating

No. of CAPS Ratings

Bearish CAPS Ratings

Bear Ratio

E-Future

1

92

74

80.4%

CA (NYSE:CA)

1

47

32

68.1%

WCI Comm. (NYSE:WCI)

1

36

23

63.9%

NVR

1

74

47

63.5%

Brookfield Homes

1

25

15

60.0%

Source: Motley Fool CAPS

Do you agree? Disagree? Let us know what you think by signing up for CAPS today. It's 100% free to participate.

Cap off your day with related CAPS Foolishness:

Fool contributorTim Beyers, ranked 900 out of 16,821 inMotley Fool CAPS, didn't own shares in any of the companies mentioned in this story at the time of publication. Get the skinny on all of the stocks he owns by checking Tim's Foolprofile. The Motley Fool'sdisclosure policyis hotter than city asphalt in the summer heat.