Most investors don't keep tabs on their companies' fundamental value. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns.
We can help you keep tabs on your companies with MyWatchlist.com, our free, personalized stock-tracking service. Here are five stocks from my watchlist that have been hot lately.
1. Clean Energy Fuels
Clean Energy Fuels attracted my notice after rising roughly 22% in the past month. The company is building out a network of natural gas stations, and it got a boost after President Obama's speech on the nation's energy problems included praise for natural gas. The company has been benefitting from LNG stations at Pilot Flying J stations. While the stock is expensive, it could be a long-term winner, should rising gas prices prompt more truckers to switch to alternative fuels.
- Add Clean Energy Fuels to your watchlist.
Molycorp caught my eye after increasing 53% the past month. Molycorp is the largest of the U.S. rare-earth miners, and it's risen steadily as the company announces further acquisitions. As fellow fool Sean Williams pointed out, the company is priced for perfection at almost 13 times book value and 160 times trailing annual sales. The Fool's investing community, CAPS, is also down on Molycorp, giving it and fellow rare-earth mineral company Rare Element Resources
- Add Molycorp to your watchlist.
3. CAMAC Energy
CAMAC Energy has been on a tear recently. Its stock has risen 25% the past month, although it has actually lost ground since the beginning of the year. Like HyperDynamics
- Add CAMAC Energy to your Watchlist.
4. Yanzhou Coal Mining
Yanzhou Coal Mining caught my eye after rallying 19% over the past month. Like fellow Chinese coal producer L&L Energy
- Add Yanzhou Coal Mining to your watchlist.
5. Precision Drilling
Precision Drilling drew my attention after rising 21% the past month. The stock has done even better over the past six months, crushing the averages by nearly doubling. Precision Drilling is a Canadian land driller that has been rising along with the surge in drilling in new oil and gas plays. The company is somewhat exposed to oil and gas prices, since when they rise, more firms want to drill. However, even though natural gas prices are low, Precision Drilling has been benefitting from the use-it-or-lose-it nature of leases prevalent in shale plays. This policy keeps rigs operating, even when it may be unprofitable for the owner. At nearly 70 times trailing earnings, shareholders may want to consider taking some profits. The Fool's investor community still likes Precision Drilling , and I'm going to continue watching this one.
- Add Precision Drilling to My Watchlist.
Foolish bottom line
While these five energy stocks have been on fire as of late, intelligent investors don't just follow the herd. The Motley Fool has created a new, special report; you can download it today at no cost to you. In this report, Fool analysts cover three outstanding oil companies, including the stock Fool analyst David Lee Smith calls the "energy king." To get instant access to the names of the three stocks, click here -- it's free.