Hot Stocks for Your Portfolio

Previously, I mentioned two new China stocks as being really hot. Of the two, Trina Solar Ltd. (NYSE/TSL) is definitely the hottest.

This stock is liquid, it has a huge following, and it represents a great opportunity for traders. Make no mistake, however, that what goes up can come down much more quickly. These China stocks are hot — but they can also be very risky.

I have to mention LJ International (NASDAQ/JADE) once again. This jewelry distributor with a big China retail outlet just broke through the $9 per share level on heavy volume. The company just raised its guidance for revenues, earnings, and earnings per share. This company’s been an outstanding moneymaker.

So, having discussed the hottest speculative stocks on the market in this column, why not turn our attention to some more reasonable favorites.

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I still love VCA Antech (NASDAQ/WOOF). This veterinary hospital consolidator is the best in the business. The company is growing, it’s profitable, and its long-term prospects are great. I know you shouldn’t fall in love with a stock, but, with this one, it’s difficult not to. Look for this company’s next set of financial results very shortly.

Another great large-cap stock is Luxottica Group (NYSE/LUX). This company’s been mentioned lots of times before in this column, and I can’t help but think that it will be a great investment over the next 10 years. The company’s planning to remodel some 480 existing retail stores this year and build 500 new retail outlets.

You’ve got to love this company because it controls both the wholesale and retail market for eyewear. It makes money all through the supply chain, and it has the market share to control prices. What a great business!

Finally, in the super large-cap category, one of my consistent favorite companies is Johnson & Johnson (NYSE/JNJ). We all know this company’s products very well. It is a reliable earnings grower and the kind of stock you keep in your portfolio for your children someday.

From small- to mid- to large-cap, the stock market really does offer great opportunities for investors.