6 Mid Caps That Have Bucked the Lousy Economy

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 |  Includes: BIG, CEPH, FLS, IVZ, MU, TER
by: Follow My Alpha

Ever notice how polarized the investment world seems sometimes when it comes to looking for top companies? We sure do. It’s either value or growth, small cap or large, and or some other fundamental investing debate. Still, few people ever actually notice that a good portion of large cap companies grew into that position from small cap.

That’s why we find it so odd that mid cap companies always seem to get “overlooked” on average, within the investment community. Sometimes the best way to find the next all-star large cap company is to look among the unloved mid caps to see which one’s actually stand out of the pack.

We ran a screen for companies that feel into the luke warm mid cap category ($1-$10B). From this pool, we screened for companies that had on average aggressively growth the bottom line on a multi-year basis (5-year average earnings growth rate>30%). Any mid cap company that been able to consistently churn out large amounts of cash in the last few years has a better probability of growing its market cap and stock price than most others.

The list below is sorted from highest to lowest to by 5-year average earnings growth rate.

1. Big Lots (NYSE:BIG)

Sector

Services

Industry

Discount, Variety stores

Market Cap

$2.4 B

Beta

1.1

Analyst Sentiment

9/17 – List Hold /Neutral (Neutral)

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This company is the nation's largest broadline closeout retailer. The firm’s Average 5 year earnings is 41.7%. Over the last month BIG has Lost 7.8%.

Short Interest Note: The short interest for the firm is 6.4% as of 07/15/2011.

2. Cephalon (NASDAQ:CEPH)

Sector

Health Care

Industry

Pharma

Market Cap

$6.1 B

Beta

0.4

Analyst Sentiment

16/17 – List Hold /Neutral (Neutral)

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The coma is a global biopharmaceutical company that discovers, develops and brings medications to market worldwide. The firm’s Average 5-year earnings is 36.8%. Over the last month CEPH has Lost 1.6%.

Short Interest Note: The short interest for the firm is 18.8% as of 07/2011.

3. Flowserve Corp. (NYSE:FLS)

Sector

Industrials

Industry

Manufacturing

Market Cap

$2.4 B

Beta

1.6

Analyst Sentiment

6/12 – List Hold /Neutral (Neutral)

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The company manufactures and services comprehensive flow control systems. The firm’s Average 5-year earnings is 42.4%. Over the last month BIG has Lost 18.7%.

Short Interest Note: The short interest for the firm is 1.4% as of 07/15/2011.

4. Invesco Ltd. (NYSE:IVZ)

Sector

Financials

Industry

Investment management

Market Cap

$9.0 B

Beta

1.7

Analyst Sentiment

9/17 – List Hold /Neutral (Neutral)

Click to enlarge

Description: Provides investment management strategies and vehicles for retail, institutional and high-net-worth clients around the world. The firm’s Average 5-year earnings is 34.6%. Over the last month IVZ has Lost 17.0%.

Short Interest Note: The short interest for the firm is 1.6% as of 07/15/2011.

5. Micron Technology Inc. (NASDAQ:MU)

Sector

Information Technology

Industry

Semiconductor

Market Cap

$6.3 B

Beta

1.1

Analyst Sentiment

9/17 – List Hold /Neutral (Neutral)

Click to enlarge

The company manufactures and markets semiconductors globally. The firm’s Average 5-year earnings is 33.7%. Over the last month IVZ has Lost 17.8%.

Short Interest Note: The short interest for the firm is 6.6% as of 07/15/2011.

6. Teradyne Inc. (NYSE:TER)

Sector

Information Technology

Industry

Equipment manufacturing

Market Cap

$2.2 B

Beta

1.8

Analyst Sentiment

9/17 – List Hold /Neutral (Neutral)

Click to enlarge

Supply automatic test equipment globally. The firm’s Average 5-year earnings are 32.4%. Over the last month TER has Lost 20.3%.

Short Interest Note: The short interest for the firm is 11.5% as of 07/15/2011.

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