Our Hot Stocks Are Heating Up
This Earnings Season

Before we get to our new buy, I want to take a quick look at our current Red Hot Summer Stocks to see how they're shaping up this earnings season.

Stock #1: FPL Group (FPL) is set to report earnings on July 28. The current estimate is for the company to earn 99 cents per share. Watch this number carefully because if FPL posts a number even slightly larger than 99 cents, you should see the stock make a nice jump higher. See the complete write-up on FPL here.

Stock #2: McDonald's (MCD) has done quite well through the recession, but its last quarterly report came in lower than expected because of unfavorable exchange rates. What happened was that the dollar had appreciated against other currencies, and MCD earnings took a hit. With the dollar on a steady decline since April, MCD should see the dollar once again working in its favor. See the complete write-up on MCD here.

Stock #3: GigaMedia (GIGM) is coming off two tough quarters, and that's one of the main reasons we bought the stock. With gaming on the rise as investors look for cheaper entertainment opportunities and low expectations for the stock, this could be our knock-it-out-of-the-park winner. See the complete write-up on GIGM here.  

Stock #4: E-House (EJ) is our most recent buy, and this stock is an earnings superstar. In the first quarter, EJ blew earnings estimates away. Our China real estate play beat estimates by 80%! While this is tough to do every quarter, with rising home values and strong growth in China, this should be another great quarter for E-House. See the complete write-up on EJ here.

Now let's get right to our new buy for today…