Momentum Ideas: 10 High Growth Stocks Hitting New Highs

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 |  Includes: AAPL, AIXG, ATW, CHU, DHR, LKQ, POT, RBA, SHAW, UA
by: Kapitall

The following is a list of stocks that have outperformed competitors on five different levels of growth. Additionally, they have all reached 52-week highs during recent sessions.

All of the companies mentioned below have the following characteristics:

  • EPS growth projected to be higher than their industry competitors in the next five years
  • EPS and revenue have grown faster than their industry competitors over the last five years
  • Capital spending accelerated at a faster rate than their competitors (theoretically, this makes them more competitive over the coming years)
  • Cashflow growth has accelerated faster than their industry competitors over the last five years

The goal here is to give momentum investors a starting point for their own analysis. These companies are hitting new highs--will they continue to move higher? Full analysis below.

All growth stats sourced from Fidelity, short float and performance data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by EPS growth over the last five years.

1. Apple Inc. (NASDAQ:AAPL): Personal Computers Industry. Market cap of $324.18B.

EPS has grown by 57.56% over the last five years vs. industry average at 39.46%. EPS projected to grow by 20.56% over the next five years vs. industry average at 16.70%. Revenue has grown by 36.17% over the last five years vs. industry average at 22.98%.

Capital spending has grown by 50.46% over the last five years vs. industry average at 29.64%. The company's cash flow has grown by 58.36% over the last five years vs. industry average at 36.74%.

Short float at 0.73%, which implies a short ratio of 0.44 days. The stock has gained 81.27% over the last year.

Other Highlights:

- Judging by trailing twelve month (TTM) ratios like Return on Equity (ROE), Return on Assets (ROA) and Return on Invested Capital (ROI), it's clear that the Apple's management is doing an excellent job. TTM ROE at 35.99%, higher than the industry average at 27.34%, TTM ROA at 23.46% vs. the industry average at 15.44%, and TTM ROI at 33.%, higher than the industry average at 22.94%. The company also outperformed its industry competitors in terms of the TTM Return on Sales ratio (21.81% vs. the industry average at 14.74%).

- The company seems to be doing a good job managing its inventory and receivables, which provides more evidence of a solid management team. Trailing twelve month Inventory Turnover ratio came in at 51.81, higher than the industry average at 33.16, while trailing twelve month receivables turnover came in at 9.59 vs. the industry average at 8.43.

- Institutional and mutual fund investors have been net purchasers of the Apple's shares over the last two quarters, suggesting that the smart money thinks there's more upside to the stock. Institutional investors have been net buyers of 7.8M shares during the most recent quarter, vs. 23.0M net shares purchased in the previous quarter. Mutual fund investors have also been optimistic on the stock. They were net buyers of 12.5M shares during the most recent quarter, vs. 1.7M net shares purchased in the previous quarter.

2. Atwood Oceanics, Inc. (NYSE:ATW): Oil & Gas Drilling & Exploration Industry. Market cap of $2.78B.

EPS has grown by 56.74% over the last five years vs. industry average at 26.56%. EPS projected to grow by 15.00% over the next five years vs. industry average at 14.45%. Revenue has grown by 31.02% over the last five years vs. industry average at 14.56%.

Capital spending has grown by 48.90% over the last five years vs. industry average at 26.02%. The company's cash flow has grown by 41.01% over the last five years vs. industry average at 22.21%.

Short float at 10.15%, which implies a short ratio of 8.14 days. The stock has gained 30.41% over the last year.

Other Highlights:

- The company has low debt and great liquidity, which significantly reduces its risk over the coming months. During the most recent quarter, the total Debt/Assets ratio stood at 16.03% vs. the industry average at 18.95%. Total Debt/Equity came in at 21.04%, lower than the industry average at 38.72%. The company also appears to be more liquid than its competitors. The TTM Current Ratio stands at 3.38, higher than the industry average at 2.22. (Note: All ratios based on the most recent quarter, annualized)

3. Aixtron AG (NASDAQ:AIXG): Diversified Machinery Industry. Market cap of $4.35B.

EPS has grown by 36.85% over the last five years vs. industry average at 11.70%. EPS projected to grow by 67.50% over the next five years vs. industry average at 14.98%. Revenue has grown by 18.60% over the last five years vs. industry average at 8.92%.

Capital spending has grown by 21.27% over the last five years vs. industry average at 1.52%. The company's cash flow has grown by 36.90% over the last five years vs. industry average at 8.98%.

Short float at 4.2%, which implies a short ratio of 11.94 days. The stock has gained 56.45% over the last year.

Other Highlights:

- Over the last year, the company has proven itself to be more profitable than its industry competitors. Trailing twelve month (TTM) gross margin at 54.07%, lower than the industry average at 57.79%. TTM EBITD margin at 35.01% vs. industry average at 32.7%, while TTM operating margin came in at 32.81%, higher than the industry average at 24.69%. The company also outperformed with its pretax margin, reporting a ratio of 32.77%, higher than the industry average at 23.29%.

- Judging by trailing twelve month (TTM) ratios like Return on Equity (ROE), Return on Assets (ROA) and Return on Invested Capital (ROI), it's clear that the company's management is doing an excellent job. TTM ROE at 33.91%, higher than the industry average at 29.31%, TTM ROA at 22.38% vs. the industry average at 16.22%, and TTM ROI at 33.89%, higher than the industry average at 19.07%. The company also outperformed its industry competitors in terms of the TTM Return on Sales ratio (22.65% vs. the industry average at 20.67%).

- The company appears to have a very efficient workforce, which should help manage cost pressures going forward. Trailing twelve month Income/Employee stands at $313,322, higher than the industry average at $120,768. The company also outperformed on the Revenue/Employee metric ($1,383,050 vs. the industry average at $524,410).

4. Shaw Group Inc. (NYSE:SHAW): Heavy Construction Industry. Market cap of $3.32B.

EPS has grown by 34.00% over the last five years vs. industry average at 21.73%. EPS projected to grow by 14.38% over the next five years vs. industry average at 13.30%. Revenue has grown by 16.47% over the last five years vs. industry average at 14.21%.

Capital spending has grown by 45.12% over the last five years vs. industry average at 17.48%. The company's cash flow has grown by 27.85% over the last five years vs. industry average at 24.20%.

Short float at 2.93%, which implies a short ratio of 2.49 days. The stock has gained 22.16% over the last year.

Other Highlights:

- Insiders appear to be optimistic on the outlook for the company. On a net basis, they've purchased an average of 44,549 shares per year (over last 2 years).

5. LKQ Corp. (LKQX): Auto Parts Wholesale Industry. Market cap of $3.58B.

EPS has grown by 30.78% over the last five years vs. industry average at 7.98%. EPS projected to grow by 18.09% over the next five years vs. industry average at 13.78%. Revenue has grown by 36.97% over the last five years vs. industry average at 10.89%.

Capital spending has grown by 16.83% over the last five years vs. industry average at 13.70%. The company's cash flow has grown by 42.50% over the last five years vs. industry average at 11.15%.

Short float at 1.61%, which implies a short ratio of 4.02 days. The stock has gained 36.58% over the last year.

Other Highlights:

- Over the last year, the company has proven itself to be more profitable than its industry competitors. Trailing twelve month (TTM) gross margin at 45.03%, higher than the industry average at 32.52%. TTM EBITD margin at 13.73% vs. industry average at 8.68%, while TTM operating margin came in at 12.15%, higher than the industry average at 7.44%. The company also outperformed with its pretax margin, reporting a ratio of 11.06%, higher than the industry average at 7.15%.

6. Under Armour, Inc. (NYSE:UA): Apparel Clothing Industry. Market cap of $3.34B.

EPS has grown by 30.07% over the last five years vs. industry average at 15.38%. EPS projected to grow by 21.30% over the next five years vs. industry average at 13.39%. Revenue has grown by 30.50% over the last five years vs. industry average at 10.08%.

Capital spending has grown by 22.62% over the last five years vs. industry average at 7.10%. The company's cash flow has grown by 30.92% over the last five years vs. industry average at 12.51%.

Short float at 11.63%, which implies a short ratio of 5.64 days. The stock has gained 173.64% over the last year.

Other Highlights:

- The company has low debt and great liquidity, which significantly reduces its risk over the coming months. During the most recent quarter, the total Debt/Assets ratio stood at 2.36% vs. the industry average at 8.14%. Total Debt/Equity came in at 3.21%, lower than the industry average at 58.86%. The company also appears to be more liquid than its competitors. The TTM Current Ratio stands at 3.74, higher than the industry average at 3.29. (Note: All ratios based on the most recent quarter, annualized)

- The company outperformed analyst earnings estimates during the most recent quarter, suggesting that the analyst community is underestimating the stock. The company reported earnings per share of $0.44 per share, and exceeded the First Call Consensus of $0.37 (Q4 Earnings on 01/27/11). The company also outperformed analyst estimates over the last year, reporting earnings per share at $1.34, beating the consensus view at $1.26 (based on the estimates of 26 analysts).

7. Potash Corp. of Saskatchewan, Inc. (NYSE:POT): Agricultural Chemicals Industry. Market cap of $52.35B.

EPS has grown by 29.56% over the last five years vs. industry average at 10.39%. EPS projected to grow by 19.65% over the next five years vs. industry average at 12.93%. Revenue has grown by 11.19% over the last five years vs. industry average at 6.11%.

Capital spending has grown by 38.90% over the last five years vs. industry average at 13.74%. The company's cash flow has grown by 23.41% over the last five years vs. industry average at 6.25%.

Short float at 1.86%, which implies a short ratio of 1.3 days. The stock has gained 81.94% over the last year.

Other Highlights:

- Over the last year, the company has proven itself to be more profitable than its industry competitors. Trailing twelve month (TTM) gross margin at 45.26%, higher than the industry average at 35.36%. TTM EBITD margin at 41.77% vs. industry average at 19.87%, while TTM operating margin came in at 35.49%, higher than the industry average at 13.39%. The company also outperformed with its pretax margin, reporting a ratio of 37.45%, higher than the industry average at 9.28%.

- The company outperformed analyst earnings estimates during the most recent quarter, suggesting that the analyst community is underestimating the stock. The company reported earnings per share of $1.77 per share, and exceeded the First Call Consensus of $1.65 (Q4 Earnings on 01/27/11). The company also outperformed analyst estimates over the last year, reporting earnings per share at $6.11, beating the consensus view at $5.96 (based on the estimates of 25 analysts).

8. Ritchie Bros. Auctioneers Incorporated (NYSE:RBA): Business Services Industry. Market cap of $2.73B.

EPS has grown by 21.18% over the last five years vs. industry average at 4.73%. EPS projected to grow by 14.64% over the next five years vs. industry average at 12.75%. Revenue has grown by 15.66% over the last five years vs. industry average at 9.30%.

Capital spending has grown by 46.35% over the last five years vs. industry average at 7.03%. The company's cash flow has grown by 21.34% over the last five years vs. industry average at 9.77%.

Short float at 20.35%, which implies a short ratio of 54.11 days. The stock has gained 28.83% over the last year.

Other Highlights:

- Institutional and mutual fund investors have been net purchasers of the company's shares over the last two quarters, suggesting that the smart money thinks there's more upside to the stock. Institutional investors have been net buyers of 466.7K shares during the most recent quarter, vs. 774.3K net shares purchased in the previous quarter. Mutual fund investors have also been optimistic on the stock. They were net buyers of 631.0K shares during the most recent quarter, vs. 1.3M net shares purchased in the previous quarter.

9. Danaher Corp. (NYSE:DHR): Conglomerate. Market cap of $32.06B.

EPS has grown by 13.85% over the last five years vs. industry average at 4.30%. EPS projected to grow by 16.09% over the next five years vs. industry average at 15.64%. Revenue has grown by 10.58% over the last five years vs. industry average at 5.11%.

Capital spending has grown by 12.39% over the last five years vs. industry average at 6.76%. The company's cash flow has grown by 15.30% over the last five years vs. industry average at 2.55%.

Short float at 0.78%, which implies a short ratio of 1.39 days. The stock has gained 40.05% over the last year.

Other Highlights:

- Judging by trailing twelve month (TTM) ratios like Return on Equity (ROE), Return on Assets (ROA) and Return on Invested Capital (ROI), it's clear that the company's management is doing an excellent job. TTM ROE at 14.12%, lower than the industry average at 17.37%, TTM ROA at 8.57% vs. the industry average at 5.54%, and TTM ROI at 11.53%, higher than the industry average at 8.35%. The company also outperformed its industry competitors in terms of the TTM Return on Sales ratio (13.58% vs. the industry average at 6.15%).

- The company has low debt and great liquidity, which significantly reduces its risk over the coming months. During the most recent quarter, the total Debt/Assets ratio stood at 12.71% vs. the industry average at 28.06%. Total Debt/Equity came in at 20.6%, lower than the industry average at 140.04%. The TTM Current Ratio stands at 1.7, lower than the industry average at 1.95. (Note: All ratios based on the most recent quarter, annualized)

10. China Unicom Limited (NYSE:CHU): Wireless Communications Industry. Market cap of $38.57B.

EPS has grown by 7.03% over the last five years vs. industry average at 2.44%. EPS projected to grow by 32.50% over the next five years vs. industry average at 11.86%. Revenue has grown by 18.66% over the last five years vs. industry average at 9.43%.

Capital spending has grown by 37.66% over the last five years vs. industry average at 10.91%. The company's cash flow has grown by 23.60% over the last five years vs. industry average at 7.51%.

Short float at 0.57%, which implies a short ratio of 1.78 days. The stock has gained 56.95% over the last year.

Other Highlights:

- The company seems to be doing a good job managing its inventory and receivables, which provides more evidence of a solid management team. Trailing twelve month Inventory Turnover ratio came in at 48.02, higher than the industry average at 39.75, while trailing twelve month receivables turnover came in at 15.63 vs. the industry average at 8.34.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.