Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you like to invest with a stock's trading momentum? For a look at stocks with strong upward momentum, we ran a screen you may be interested in.

We began by screening for stocks trading between $1- $5 a share that have outperformed the market over the last quarter, with quarterly performance above 10%.

We then screened for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will continue to beat the market? Use this list as a starting point for your own analysis.

1. AU Optronics Corp. (NYSE:AUO): Develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays to original equipment manufacturing service providers. Market cap at $4.18B, most recent closing price at $4.73. Performance over the last quarter at 34.28%.

Revenue grew by 3.9% during the most recent quarter ($102,781M vs. $98,927M y/y). Accounts receivable grew by -18.98% during the same time period ($52,215M vs. $64,444M y/y). Receivables, as a percentage of current assets, decreased from 30.02% to 27.36% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

2. EnergySolutions, Inc (NYSE:ES): Provides technology-based nuclear services to government and commercial customers primarily in the United States and the United Kingdom. Market cap at $312.3M, most recent closing price at $3.52. Performance over the last quarter at 24.46%.

Revenue grew by 5.49% during the most recent quarter ($444.16M vs. $421.03M y/y). Accounts receivable grew by -13.56% during the same time period ($280.44M vs. $324.42M y/y). Receivables, as a percentage of current assets, decreased from 45.84% to 37.04% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

3. Gafisa S.A. (NYSE:GFA): Operates as a homebuilder in Brazil. Market cap at $1.07B, most recent closing price at $4.78. Performance over the last quarter at 12.56%.

Revenue grew by 21.7% during the most recent quarter ($1,064.09M vs. $874.38M y/y). Accounts receivable grew by -12.79% during the same time period ($3,476.23M vs. $3,985.84M y/y). Receivables, as a percentage of current assets, decreased from 55.29% to 49.52% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

4. SIRIUS XM Radio Inc. (NASDAQ:SIRI): Provides satellite radio services in the United States and Canada. Market cap at $16.04B, most recent closing price at $3.10. Performance over the last quarter at 22.22%.

Revenue grew by 13.74% during the most recent quarter ($867.36M vs. $762.55M y/y). Accounts receivable grew by 7.86% during the same time period ($190.74M vs. $176.84M y/y). Receivables, as a percentage of current assets, decreased from 17.12% to 10.24% during the most recent quarter (comparing 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 4 Outperforming Stocks Under $5 With Strong Sales Trends