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I have searched for highly profitable growth stocks that are in short term, mid term and long-term uptrends. These stocks also have to show a remarkably low forward P/E ratio and a very low debt.

I used Portfolio123's powerful screener to perform my search. The screen's formula requires all stocks to comply with all the following demands:

  1. The stock does not trade over-the-counter (OTC).
  2. Market cap is greater than $100 million.
  3. Price is greater than 1.00.
  4. Average annual earnings growth for the past five years is greater than 25%.
  5. Average annual earnings growth estimates for the next five years is greater than 10%.
  6. Forward P/E is less than 15.
  7. Total debt to equity is less than 0.40.
  8. The stock price is above the 20-day simple moving average (short-term uptrend).
  9. The stock price is above the 50-day simple moving average (mid-term uptrend).
  10. The stock price is above the 200-day simple moving average (long-term uptrend).
  11. The twenty stocks with the highest earnings growth estimates among all the stocks that complied with the first ten demands.

As a result, twenty stocks came out, as shown in the charts below (the number of stocks left after each demand can be seen in the chart). In this article, I describe the three stocks with the highest earnings growth estimates among the twenty stocks. In my opinion, these stocks can reward an investor a significant capital gain. I recommend readers use this list of stocks as a basis for further research. All the data for this article were taken from Yahoo Finance, Portfolio123 and finviz.com, on October 20.

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Questcor Pharmaceuticals, Inc. (QCOR)

Questcor Pharmaceuticals, Inc., a biopharmaceutical company, provides drugs for the treatment of multiple sclerosis, nephrotic syndrome, and infantile spasms indications.

Questcor Pharmaceuticals has a very low debt (total debt to equity is only 0.06), and it has a trailing P/E of 17.78 and a very low forward P/E of 11.29. The PEG ratio is very low at 0.68, and the average annual earnings growth estimates for the next five years is very high at 25.75%. The forward annual dividend yield is at 1.52%, and the payout ratio is only 23.3%.

The QCOR stock price is 11.64% above its 20-day simple moving average, 3.42% above its 50-day simple moving average and 54.34% above its 200-day simple moving average. That indicates a short term, mid term and long-term uptrend.

Analysts recommend the stock. Among the ten analysts covering the stock, six rate it as a strong buy, three rate it as a buy, and only one rates it as a hold.

Questcor Pharmaceuticals has recorded very strong revenue and EPS growth, during the last year, the last three years, and the last five years, as shown in the table below.

Source: Portfolio123

The tables below emphasize the Questcor Pharmaceuticals' superior growth rates, margins and return on capital over the industry median, the sector median and the S&P 500 median.

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Source: Portfolio123

Questcor Pharmaceuticals will report its latest quarterly financial results on October 29. QCOR is expected to post a profit of $1.28 a share, a 32% rise from the company's actual earnings for the same quarter a year ago.

Questcor Pharmaceuticals has recorded very strong revenue and EPS growth, and it has very strong earnings growth prospects, and considering its compelling valuation metrics, and the fact that the stock is in an uptrend, QCOR stock can move higher. Furthermore, the solid dividend represents a nice income.

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Chart: finviz.com

HCI Group, Inc. (NYSE:HCI)

HCI Group, Inc., an insurance holding company, provides property and casualty insurance in Florida.

HCI Group has a very low debt (total debt to equity is only 0.26), and it has a very low trailing P/E of 6.65 and a very low forward P/E of 9.87. The price-to-cash ratio is extremely low at 1.52, and the price to free cash flow for the trailing 12 months is also very low at 4.06. The average annual earnings growth estimates for the next five years is very high at 25%. The forward annual dividend yield is at 2.14%, and the payout ratio is only 20.30%.

The HCI stock price is 3.79% above its 20-day simple moving average, 14.66% above its 50-day simple moving average and 40.70% above its 200-day simple moving average. That indicates a short term, mid term and long-term uptrend.

Analysts recommend the stock. Among the three analysts covering the stock, one rates it as a strong buy, and two rate it as a buy.

HCI Group has recorded strong revenue and EPS growth, during the last year, the last three years and the last five years, as shown in the table below.

The tables below emphasize the HCI Group's superior growth rates, margins and return on capital over the industry median, the sector median and the S&P 500 median.

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HCI Group will report its latest quarterly financial results on November 04. HCI is expected to post a profit of $0.67 a share, a 148% rise from the company's actual earnings for the same quarter a year ago.

On August 01, HCI Group reported its second-quarter financial results, which beat EPS expectations by $0.18. The company reported income available to common stockholders in the second quarter of 2013 totaled $16.2 million or $1.40 diluted earnings per common share, an improvement from $7.2 million or $0.74 diluted earnings per common share in the second quarter of 2012. Gross premiums earned in the second quarter of 2013 increased 52.4% to $82.0 million from $53.8 million in the same period in 2012. The increase was primarily due to policies assumed from Citizens Property Insurance Corporation in November 2012.

HCI has recorded very strong revenue and EPS growth, and considering its compelling valuation metrics, and it strong earnings growth prospects, HCI stock can move higher. Furthermore, the rich dividend represents a nice income.

Since the company is rich in cash ($27.77 a share) and has a low debt and its payout ratio is very low, there is hardly a risk that the company will reduce its dividend payment.

Main risk to HCI stock is big losses in the event of severe hurricane storms.

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Chart: finviz.com

United Therapeutics Corporation (NASDAQ:UTHR)

United Therapeutics Corporation, a biotechnology company, focuses on the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening conditions worldwide.

United Therapeutics Corporation has a very low debt (total debt to equity is only 0.24), and it has a low trailing P/E of 14.19 and a very low forward P/E of 11.15. The price to free cash flow for the trailing 12 months is very low at 11.97, and the average annual earnings growth estimates for the next five years is very high at 22.80%.

The UTHR stock price is 1.91% above its 20-day simple moving average, 7.31% above its 50-day simple moving average and 24.81% above its 200-day simple moving average. That indicates a short term, mid term and long-term uptrend.

United Therapeutics has recorded strong revenue and EPS growth, during the last year, the last three years and the last five years, as shown in the table below.

The tables below emphasize the United Therapeutics Corporation's superior growth rates, margins and return on capital over the industry median, the sector median and the S&P 500 median.

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United Therapeutics will report its latest quarterly financial results on October 24. UTHR is expected to post a profit of $1.59 a share, a 9% rise from the company's actual earnings for the same quarter a year ago.

United Therapeutics has recorded very strong revenue and EPS growth, and it has strong earnings growth prospects, and considering its compelling valuation metrics, and the fact that the stock is in an uptrend, UTHR stock can move higher.

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Chart: finviz.com

Disclosure: I am long HCI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.