These Stocks Beat India's Stocks

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India's immense population and burgeoning economy has for years now drawn investors to big gains in fast-growing Indian companies. But I've found investments from another country that are beating the pants off Indian stocks -- and I know where you can find out more about them.

Would the real hot stocks please come forward?
The 5,500 stocks that more than 110,000 Motley Fool CAPS community members have rated include descriptive "tags" that group them with other companies sharing similar qualities -- a country of origin, a sector, or an end product, for example. Clicking the India tag pulls up a list of 27 stocks that, as a group, have actually lost 20.7% in the past year.

But CAPS tags can lead you to stocks that have outpaced the returns from the India group: Switzerland. This group comprises 11 companies that have outperformed the returns of the broader market and the India group with a 1.27% average gain in the past year.

Each group has its share of winners and losers, of course, but CAPS can be a great resource for zeroing in on companies that grow exponentially over time.

From macro to micro
You can sort tag groups by their CAPS ratings, from one to a maximum five stars, and then see which players -- from Wall Street to Main Street -- are bullish or bearish on a company, and why.

For instance, here are a few of the stocks in the India group:

Company

CAPS Rating (out of 5)

1-Year Performance

Dr. Reddy's Laboratories   (NYSE: RDY)

*****

(6.8)%

Mahanagar Telephone Nigam

*****

(43.4)%

Patni Computer Systems

****

(58.9)%

Rediff.com

**

(63.3)%

Sources: Yahoo! Finance and Motley Fool CAPS, as of July 3.

Now, based on the interest in the CAPS community, here's a sampling of Swiss stocks that investors may want to consider.

Company

CAPS Rating

1-Year Performance

ABB (NYSE: ABB)

*****

15.7%

Syngenta (NYSE: SYT)

*****

49.7%

Alcon (NYSE: ACL)

*****

22%

Credit Suisse (NYSE: CS)

*

(36.8)%

Sources: Yahoo! Finance and Motley Fool CAPS, as of July 3.

ABB
Demand for energy infrastructure equipment and green technologies has kept automation and power technology provider ABB busy delivering solutions around the globe. With more than $8.3 billion in cash and equivalents on the balance sheet and 87% earnings growth in the first quarter, stock in ABB has been on a tear the past several years. And with long-term earnings growth expected to be almost 20% annually, CAPS investors see even more unbelievable growth for this global giant. Nearly 97% of the 1,218 investors rating ABB believe it will outperform the broader market.

Alcon
Eye-care product maker Alcon has consistently put its money to work. And with a greater than 20% return on capital (ROC) for the past four years, the company joins an elite group that efficiently turns dollars into superior returns for investors. The sale of surgical tools is boosting revenue, and drug maker Novartis will be taking a 25% stake in the company from majority owner Nestle. CAPS investors are staking a claim in Alcon as well, with 252 of the 260 investors rating the company saying they're bullish about the future.

Syngenta
With the worldwide insecticide market estimated to be around $8 billion, chemical and seed manufacturer Syngenta expects 20% earnings growth this year as farmers spend more money to protect their valuable crops. The company has also been making friends lately, linking up with DuPont (NYSE: DD) and Monsanto to further develop agriculture chemicals and seed traits. With the agriculture sector booming, the vast majority of CAPS investors -- 460 of the 474 rating the company -- expect Syngenta to outperform the S&P.

Credit Suisse
The lone market laggard on our Swiss stock list is, unsurprisingly, from the banking sector. Since the subprime crisis started last year, Swiss bank giants Credit Suisse and peer UBS (NYSE: UBS) have written down $10 billion and $37 billion, respectively. The Federal Banking Commission may also require both banks to raise billions more in additional capital to meet higher capital reserve requirements. While the banking giant once appeared above the mortgage and credit malaise, investors got a dose of reality earlier this year, and CAPS investors have since turned negative on the stock. Today, 53% of the 440 investors rating the company expect Credit Suisse to underperform the market.

Before you buy ...
Of course, what's happened in the past is no indicator of where investors should be putting their capital now. But the underlying reasons behind dramatic run-ups in stocks or groups of stocks can clarify trends that may significantly affect investments. Just make sure to do your own due diligence rather than simply following crowds or individual recommendations.  

Follow along with the Global Gains team as they travel to key business centers in China to uncover the very best investing opportunities! Sign up here to receive their FREE dispatches from the road.

The Motley Fool Global Gains service scours the globe to track down promising investments. Check out our international investing service free for 30 days.

When it comes to running long distances, Fool contributor Dave Mock lags more than he leads. He owns no shares of companies mentioned here. Dave is the author of The Qualcomm Equation. The Fool's disclosure policy beats all other disclosure policies, year in and year out.

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