This article is part of our Rising Star Portfolios series.
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 three stocks from my watchlist that have been hot lately.
1. RAIT Financial
Each week, I cull a top stock idea from the pitches made on CAPS, The Motley Fool's free community of 170,000 members. RAIT Financial, a pick from last month, caught my eye because it has risen 40% from when it was picked. Shares of RAIT Financial, along with other commercial real estate investment trusts such as NorthStar Realty Finance
- Add RAIT Financial to My Watchlist.
2. ATP Oil & Gas
ATP Oil & Gas caught my eye after it had risen 10% in the past month before falling on Friday. The company's story is fairly well known. Last year, ATP Oil & Gas was expected to drill four wells that would transform the company into a cash flow machine. ATP Oil & Gas finished one well early in the year, but then the disaster in the Gulf of Mexico with Transocean's
- Add ATP Oil & Gas to My Watchlist.
3. Arena Pharmaceuticals
Arena Pharmaceuticals caught my eye after rallying nearly 40% over the past month. Arena's shares plummeted in September after a Food and Drug Administration advisory committee recommended against approving the company's obesity drug, lorcaserin. Arena hopes to resubmit its new-drug application by the end of 2011. Vivus
- Add Arena Pharmaceuticals to My Watchlist.
My Foolish bottom line
If you're looking for more information on these companies, keep checking in on my Rising Star portfolio in the coming weeks as I look further into each of them. If you're looking for more ideas, check out this video on a huge trend in 2011 and three stocks that should be on your list to profit from it.
This article is part of our Rising Star Portfolios series, where we give some of our most promising stock analysts cold, hard cash to manage on the Fool's behalf. We'd like you to track our performance and benefit from these real-money, real-time free stock picks. Click here to see all of our Rising Star analysts (and their portfolios).
The Fool owns shares of Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.