These five high momentum large cap growth stocks have a projected annual revenue growth rate of greater than 15% over the next fiscal year, on balance volumes trending higher, and are at least S&P 4 Star rated. These are bullish indicators regarding a stock's possible future performance.
Nonetheless, this is only the first step in finding winners for your portfolio. Now that we have cut the wheat from the chaff, let’s take a closer look to distinguish the driving factors behind these remarkable statistics and ensure the stories are intact.
Below are four tables with detailed statistics regarding company summaries, price performance, fundamentals and earnings and dividends followed by a brief analysis of each company's current events. Please use this as a starting point for your own due diligence.
Price Performance Statistics
Earnings and Dividend Statistics
Caterpillar Inc. (NYSE:CAT) - manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The United States and Colombia have decided to abolish effectively all trade barriers amongst the two countries. Caterpillar Chairman and CEO Doug Oberhelman stated "Not only is Colombia one of Caterpillar's ten largest U.S. export markets by country, but it is also one of America's closest allies. The U.S.-Colombia Free Trade Agreement will promote U.S. exports and support American jobs. The agreement is also a validation that Colombia is a good place to conduct business. Perhaps more importantly, it will bolster understanding and improve living standards of citizens in both countries," The company is likely to benefit from gains in infrastructure spending in the United States and overseas. Its stock rose 19 percent in the last quarter. Caterpillar has EPS growth for this year topping 190%. The industrial sector overall is expected to be among the top sectors for growth in the upcoming earnings reporting period. The company is trading below analyst’s estimates. CAT has a median price target of $119 by 16 brokers and a high target of $130. On Jun 16, 2010 Jefferies initiated coverage on the company with a Buy rating. Please review the illustration for CAT’s summary and key statistics.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) - Provides information technology (IT) consulting and technology services, as well as outsourcing services in North America, Europe, and Asia. A fundamental strategy of Cognizant is to align its business with vertical industries, such as financial services, health care & life sciences, retail, manufacturing and logistics. The company has grown meaningful industry know-how and knowledge of the field by associating with top firms. This strategy has allowed the company to convey value to clients and to make the most of fresh prospects. IT spending is anticipated to get a lift in 2011, and Cognizant stands to earn noteworthy contracts. CTSH recently announced it will deliver end-to-end integrated applications and infrastructure management services to UK’s leading retailer Marks & Spencer Group Plc, as part of a multi-year managed services contract. All these recent developments bode well for CTSH’s future growth. The company is trading below analyst’s estimates. CTSH has a median price target of $84 by 25 brokers and a high target of $92. On Jan 7, 2011 Barclays Capital downgraded the company from Overweight to Equal Weight. Please review the illustration for CTSH’s summary and key statistics.
EOG Resources, Inc. (NYSE:EOG) - Together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad, Tobago, the United Kingdom, and the People's Republic of China. EOG recently announced it has completed its previously announced public offering of 13,570,000 shares of common stock, including 1,770,000 shares issued upon full exercise of the underwriters' over-allotment option, at a public offering price of $105.50 per share. EOG's net proceeds from the offering of approximately $1.39 billion (after deducting the underwriting discount and estimated offering expenses) are expected to be used for general corporate purposes, including funding of future capital expenditures. EOG is extremely well positioned in regards to the major North American unconventional shale plays. EOG has shifted its focus from dry natural gas to liquids in short order. EOG still hold a large amount of dry gas leases which it could quickly ramp of production in if the latest natural gas bill recently reintroduced to congress gains momentum and increases domestic demand for natural gas. The company is trading below analyst’s estimates. EOG has a median price target of $116 by 23 brokers and a high target of $141. On Mar 30, 2011 Ticonderoga downgraded the company from Buy to Neutral. Please review the illustration for EOG’s summary and key statistics.
Joy Global Inc.(JOYG) - Engages in the manufacture and servicing of mining equipment for the extraction of coal, copper, iron ore, oil sands, and other minerals worldwide. Joy Global is one of the best bets in the natural resources boom, says Peter Tuz, manager of the Chase Growth Fund. Tuz goes on to say "The run-up is far from over. Joy Global can have 20% earnings growth between 2011 and 2012, driven by the capital expenditures of the world's leading mining companies like BHP Billiton (NYSE:BHP) and Freeport McMoRan (NYSE:FCX)." Infrastructure projects in developing nations and robust mining deals have led to healthy advances for Joy Global. These catalysts show no sign of relenting any time soon. JOYG prospects for 2012 seem secure. The company is trading below analyst’s estimates. JOYG has a median price target of $110 by 15 brokers and a high target of $120. On Oct 13, 2010 Longbow downgraded the company from Buy to Neutral. Please review the illustration for JOYG’s summary and key statistics.
Valeant Pharmaceuticals International, Inc. (NYSE:VRX) - A specialty pharmaceutical company, develops, manufactures, and markets pharmaceutical products in the areas of neurology, dermatology, and branded generics. Cephalon recently rejected an unsolicited $5.7 billion takeover bid by Valeant Pharmaceuticals International. Valeant still has some recourse and plans to submit a proposal to replace Cephalon’s board with its own selected directors. Shareholders will have 60 days from the day Valeant delivers its proposal to vote on the plan. Valeant announced its slate of nominees saying that its consent solicitation would allow Cephalon’s shareholders to decide if they wanted to pursue a deal. If Valeant succeeds in replacing Cephalon’s board, its nominees could remove impediments to a potential deal, including a poison-pill provision. Valeant dangled the prospect of a higher price if it were allowed to more closely examine Cephalon’s books. On April 1, 2011 Promius Pharma and Valeant formed collaboration to Market Cloderm Cream in the United States. Promius Pharma, LLC, an affiliate of Dr. Reddy's Laboratories (NYSE:RDY), and Valeant jointly announced that they have signed a collaboration agreement for Cloderm (clocortolone pivalate 0.1%) Cream. Under the agreement, Promius Pharma will make an upfront payment and pay future royalties as the consideration for the right to manufacture, distribute and market Cloderm Cream in the United States, effective immediately. The financial terms and conditions of the agreement have not been disclosed. If VRX can succeed in its purchase of Cephalon and effectively execute the launch of its new product, the future growth projections appear solid. The company is trading below analyst’s estimates. VRX has a median price target of $50 by 4 brokers and a high target of $75. On Feb 5, 2010 Jefferies & Co initiated coverage with a Buy rating. Please review the illustration for VRX’s summary and key statistics.
These S&P 4 Star or better rated stocks are performing at a high level, have positive growth projections, profit margins, high momentum, and intact stories. Furthermore, they are all well positioned to benefit from each of their respective sector's burgeoning demands spurred by numerous positive catalysts. I will continue monitoring these stocks further to determine the precise timing to create a position. Scaling in to the position over a period of time will reduce risk.
Information was gathered from CNBC, Yahoo Finance and respective company websites.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in EOG, JOYG, CAT, VRX, CTSH over the next 72 hours.