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.
What is CAPS? It's a unique system in which each investor rates at least seven stocks versus the S&P 500, as either an "outperform" or an "underperform." Community sentiment is then calculated to produce star ratings for each stock -- five stars being the highest, and one being the lowest. All-star stock pickers, whose choices have performed better than 80% of the community, more heavily influence the ratings.
CAPS is also organized into common "tags" for industries. The database tracks the best-performing sectors over varying periods. We're using 30-day returns since our aim here is to identify the hottest stocks right now.
Now, with that preamble behind us, CAPS says the best three industries are:
-
Tobacco products, other, which includes stocks of tobacco growers. Cigarette makers such as Altria
(NYSE:MO) and Reynolds American(NYSE:RAI) are categorized differently. Stocks in this sector have advanced an average of 21.8%% over the last 30 days. - Satellite, which includes satellite radio. Stocks in this sector have advanced an average of 20.1% over the last 30 days.
- Optical components, which includes firms specializing in equipment used for the high-speed delivery of data. Stocks in this sector have advanced an average of 18.1% over the last 30 days.
According to you, our Foolish readers, the best stocks in these industries to own now (i.e., those with 3 or more stars in CAPS) are:
Company |
CAPS |
No. of |
Bullish |
Bull ratio |
---|---|---|---|---|
Oplink Comm. |
5 |
10 |
9 |
90% |
Finisar |
4 |
133 |
128 |
96.2% |
Alliance One |
4 |
19 |
18 |
94.7% |
And your favorite short candidates (i.e., those rated 1 or 2 in CAPS) are:
Company |
CAPS |
No. of |
Bearish |
Bear Ratio |
---|---|---|---|---|
Worldspace |
1 |
124 |
108 |
87.1% |
XM Satellite |
1 |
539 |
246 |
45.6% |
Bookham |
1 |
19 |
7 |
36.8% |
JDS Uniphase |
2 |
267 |
59 |
22.1% |
Sirius Satellite
|
2 |
1,496 |
318 |
21.3% |
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:
- Go for small caps.
- Or for value.
- Or for global gainers.
- Or for dividends.
- Or for growth.
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Fool contributor Tim Beyers , ranked 1,177 out of 14,647 in Motley 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 the stocks he owns by checking Tim's Fool profile . The Motley Fool's disclosure policy is hotter than city asphalt in the summer heat.