5 Best Performing Stocks For 2014

A momentum strategy can boost returns without too much risk. Just don't be too greedy.

(Money Magazine) You've no doubt been warned more than once that chasing last year's winners is a fool's game that increases your trading costs, tax liability, and investment risk.

That's especially true if you are constantly moving in and out of individual securities, which is the classic momentum strategy. Yet a decent body of research suggests that entire asset classes that shine in one year have a better-than-average chance of outperforming in the next.

"Momentum is persistent, pervasive, and well documented in virtually every investment and in every country," says Gregg Fisher, chief investment officer with the asset-management firm Gerstein Fisher.

Top Machinery Companies To Invest In 2015: Wendel SA (MF)

Wendel SA is a France-based investor for the long-term as the majority or leading shareholder in listed or unlisted companies, taking the lead in order to accelerate the growth and development. The Firm takes part in the definition and implementation of ambitious strategies and provides the funding necessary. The investment strategy and development of the Firm takes place via close interaction with the management teams of the companies in which the Firm is a shareholder. This partnership is at the heart of the value creation process. The Firm offers active and constant support, sharing the risks and providing expertise as well as financial and technical skills. Advisors' Opinion:

• [By John McCamant]

  Incyte Pharmaceuticals (INCY) recently held their quarterly conference call. Importantly, sales for Jakafi��n advanced compound used for the treatment of patients with intermediate or high-risk myelofibrosis (MF)��et or exceeded Wall Street's expectations.

5 Best Performing Stocks For 2014: Changyou.com Limited(CYOU)

Changyou.com Limited develops and operates online games in the People?s Republic of China. It involves in the development, operation, and licensing of massively multi-player online role-playing games (MMORPGs), which are interactive online games that might be played simultaneously by various game players. The company operates seven MMORPGs that include its in house developed Tian Long Ba Bu; and licensed Blade Online, Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong, Immortal Faith, and San Jie Qi Yuan. As of December 31, 2010, Changyou?s games in China had approximately 111.4 million aggregate registered accounts; 1.0 million aggregate peak concurrent users; and 2.7 million aggregate active paying accounts. The company was founded in 2003 and is based in Beijing, the People?s Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.

Advisors' Opinion:

• [By Kevin Chen]

  To be fair, these revenues come from their stake in game company Changyou (NASDAQ: CYOU  ) . Because Sohu owns a majority stake in Changyou, Sohu must consolidate all financials into its statements -- even as Changyou is independently listed on stock exchanges. Whatever the case, Sohu actually created Changyou -- it started as a business unit in 2003, then was spun out in 2007. In any case, Sohu should do some serious soul-searching.

5 Best Performing Stocks For 2014: Plug Power Inc.(PLUG)

Plug Power Inc., an alternative energy technology provider, involves in the design, development, commercialization, and manufacture of fuel cell systems for the industrial off-road markets and stationary power markets worldwide. It develops and sells a range of fuel cell systems comprising hydrogen-fueled Proton Exchange Membrane (PEM) systems. The company?s product line includes PEM GenDrive power unit for sale on commercial terms for industrial off-road consisting of forklift or material handling applications, with a focus on multi-shift high volume manufacturing and high throughput distribution sites. It sells its products to business, industrial, and government customers through direct product sales force, original equipment manufacturers, and their dealer networks. The company was founded in 1997 and is headquartered in Latham, New York.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Leading and Lagging Sectors
  In trading on Tuesday, industrials shares were relative leaders, up on the day by about 1.78 percent. Top gainers in the sector included Plug Power (NASDAQ: PLUG) and Maxwell Technologies (NASDAQ: MXWL).

• [By Ben Levisohn]

  Shares of Tesla Motors (TSLA) fell a little today; Plug Power (PLUG) plunged. Could it be because of a report from Global Equities Research’s Trip Chowdhry, which was bullish on Tesla and bearish on fuel-cell technology?

5 Best Performing Stocks For 2014: Embraer-Empresa Brasileira de Aeronautica(ERJ)

Embraer S.A. engages in the development, production, and sale of jet and turboprop aircraft for civil and defense aviation markets. It also offers aircrafts for agricultural use; structural components, mechanical and hydraulic systems, and technical activities related to the production and maintenance of aerospace material. The company?s Commercial Aviation segment designs, develops, and manufactures various commercial aircraft for regional, low-cost, and mainline airlines primarily in Europe, the Middle East, Africa, Asia, and the Americas. Its Defense and Security segment provides a range of integrated solutions for the defense and security market, including training/light attack aircraft, aerial surveillance platforms, military transport aircraft, and government transport aircraft; command, control, communications, computer, intelligence, surveillance, and reconnaissance systems; and maintenance and material solutions. The company?s Executive Aviation segment develops a line of executive jets for fractional ownership companies, charter companies and air-taxi companies, and high-net-worth individuals. Its Aviation Services segment offers after-sales customer support services for the fleets of its commercial, executive, and defense customers. This segment also provides spare parts, maintenance and repair, training, and other product support services. The company?s Other segment involves in selling and leasing used aircraft; and offers structural parts, and mechanical and hydraulic systems for the production of helicopters. This segment also manufactures landing gear, and general aviation propeller aircraft, such as executive planes and crop dusters. It has a strategic alliance with European Aerospace and Defense Group. The company was formerly known as Embraer - Empresa Brasileira de Aeron Advisors' Opinion:

• [By Alex Planes]

  Embraer (NYSE: ERJ  ) has contracted Honeywell to provide avionics for its new E-Jet platform, which has already gained hundreds of orders and could have hundreds more in the wings. Honeywell's helicopter business also appears bullish, predicting double-digit growth in most parts of the world for the global chopper industry. And after some battery problems, Boeing's (NYSE: BA  ) 787 may finally be cleared for production takeoff, which is good news for 787 lighting-system supplier Honeywell. Generally, CEO David Cote is at least "cautiously optimistic" about the growth of the whole company, which was a harder stance to take at the end of 2012.

• [By Jon C. Ogg]

  Embraer SA (NYSE: ERJ) has held up far better than most companies in Brazil. It is the nation’s aerospace company, making jets and competing internationally for orders against Boeing and Airbus. At $34.45, the 52-week range is $27.19 to $39.47. This is hardly a victory for the bull market rise on Boeing, but at least it has held up better than others in Brazil.

• [By Adam Levine-Weinberg]

  SkyWest also recently won a 12-year contract to operate 40 Embraer (NYSE: ERJ  ) E175 76-seat regional jets for United. Moreover, United ordered another 30 E175 aircraft in April, which it plans to assign to one of its regional partners. Since SkyWest will already be flying E175s for United, the company may have a leg up vis-�-vis competitors in the bidding process for that additional work.

• [By Asit Sharma]

  What a difference a mega-order makes! Recently, I discussed Embraer's (NYSE: ERJ  ) disappointing first quarter in light of its long-term prospects. At the time, I put forward that if Embraer could add another $1 billion-$2 billion in orders to its backlog, a missing puzzle piece would fall into place, making this company a persuasive investment candidate. Last week's announcement of a significant order from regional airline SkyWest, (NASDAQ: SKYW  ) , provides a $4.1 billion jigsaw cutout to complete Embraer's picture. �