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.

There are more than 17,000 stock pickers rating companies in the CAPS database, which creates common "tags" that allow any Fool to track 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:

  • Internet Service Providers, which includes firms that connect you to the Web. Stocks in this sector have advanced 20.5% over the last 30 days.
  • Movie Production, Theaters, which includes firms that run your favorite movie houses. Stocks in this sector have advanced 16.3% over the last 30 days.
  • Residential construction, which makes the list for the second week in a row. But stocks in this sector have slipped dramatically from last Monday's tally, up just 11.8% over the last 30 days. Still, that's enough to make the top three.

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

Walter Industries (NYSE:WLT)

*****

618

604

97.7%

Tarragon Corp.

*****

102

99

97%

GigaMedia (NASDAQ:GIGM)

*****

178

169

94.9%

Source: Motley Fool CAPS

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

Company

CAPS star rating

No. of CAPS ratings

Bearish CAPS ratings

Bear ratio

Int'l Tech Sys.

*

20

20

100%

Carmike Cinemas (NASDAQ:CKEC)

*

14

10

71.4%

WCI Comms.

*

40

25

62.5%

NVR

*

78

48

61.5%

Beazer Homes

*

60

34

56.7%

Regal Enter. (NYSE:RGC)

*

33

17

51.5%

Centex CP (NYSE:CTX)

*

107

55

51.4%

Brookfield Homes

*

29

14

48.3%

Toll Brothers (NYSE:TOL)

*

325

146

44.9%

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 contributor Tim Beyers , ranked 1,013 out of 17,523 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 . Walter Industries is a Hidden Gems pick. The Motley Fool'sdisclosure policyis hotter than city asphalt in the summer heat.