These Stocks Beat Chinese Stocks

With booming growth and the Beijing Olympics right around the corner, many Chinese companies -- and their investors -- have been profiting immensely. But I've found investments from another sector that are beating the pants off Chinese 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 China tag pulls up a list of 151 stocks that have outrun the broader market, with a gain of 3.2% in the past year.

But CAPS can lead you to another group of stocks that have outpaced even the near-term returns from the China group: those from Canada. This group comprises 55 companies with an 18.8% 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 Chinese group:

Sources: Yahoo! Finance and Motley Fool CAPS, as of June 27.

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

Sources: Yahoo! Finance and Motley Fool CAPS, as of June 27.

EnCana
Oil and gas producer EnCana, one of Canada's largest companies, announced recently that it will buck the trend of "Big Oil" getting bigger and split into two companies -- a natural gas company and an oil company. After the split, it will have an integrated oil joint venture with ConocoPhillips to capitalize on opportunities in its oil sands operations and a separate team tapping a growing list of natural gas properties as well. CAPS investors generally like the plan; 97% of the 732 investors rating the company are bullish.

Oilsands Quest
The skyrocketing price of oil has helped a number of petroleum companies grow, particularly those heavily involved in oil sands operations. While pulling heavy oil from sand hasn't been attractive economically, Oilsands Quest and other companies like Suncor Energy are playing in the sandbox much more these days, increasing production volume on their costly oil sands operations. An overwhelming majority of CAPS investors think a long position in Oilsands Quest makes sense, as 97% of the 1,042 investors rating the company believe it will outperform the market.

Pengrowth Energy Trust
Surging oil prices don't always provide clear benefits for energy companies. Pengrowth Energy Trust reported a loss in the first quarter because of oil hedge contracts that lost value and unfavorable currency exchange rates. But the company still generated 58% more cash than last year, giving investors good reasons to stick around and reap the dividends that Pengrowth and other Canadian royalty trust stocks distribute. Today, 95% of the 650 investors rating Pengrowth expect it to outperform the market.

Research In Motion
Stock in Canada's top wireless device maker, Research In Motion, has been on the move lately, but not in the normal upward trajectory. The company's bubble burst when first-quarter earnings and the outlook didn't match the optimism built into the stock. But Research In Motion still gained a net 2.3 million BlackBerry subscribers, with a global market still far below penetration reached in the United States. While I personally think RIM has more staying power than many others believe it has, CAPS investors are generally wary of the highly valued company, with 880 of the 4,192 investors rating the company giving it the thumbs down.

Before you buy ...
Of course, what has 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 follow the crowds or individual recommendations.