Financial leverage will always be a double-edged sword. When economic times are great leverage can help “maximize” top line numbers and everybody’s popping champagne. Still, when things sour it has the exact opposite affect. In uncertain times like these companies that keep a lower level of leverage at face value are less likely to report extreme swings during earnings season.
Revenue Growth by percentage (TTM) is an indicator that gives investors an idea of how well the firm is performing in the recently past economic environment. Given the current market speculation this isn’t an indicator that should be overlooked.
We ran a screen for companies that are currently operating with a low degree of leverage (X<2). Next, we decided to screen for companies that had strong top line growth in this tough economic environment (X>20). We did not screen out any sectors or industries.
The list is ranked from lowest to highest financial leverage.
1. Momenta Pharmaceuticals, Inc. (NASDAQ: MNTA)
Sector | Healthcare |
Industry | Biotechnology |
Market Cap | $ 807M |
Beta | 1.27 |
Analyst Sentiment | 5/8 – List Buy/ Outperform (Bullish) |
The company focuses on the development & discovery of generic, biosimilar versions of complex drugs, and more. The firm’s 1-year revenue growth (TTM) is 476.68%. The firm’s financial leverage is 1.05.
Short Interest Note:
The short interest for the firm is 16.10% % as of 07/15/2011. Given the short number this company may be a short favorite or potentially a great short squeeze.
2. Myriad Genetics, Inc. (NASDAQ: MYGN)
Sector | Healthcare |
Industry | Diagnostics & Research |
Market Cap | $ 1,627M |
Beta | 0.16 |
Analyst Sentiment | 13/23 – List Hold/ Neutral (Neutral) |
The company develops and sells molecular diagnostic products. The firm’s 1-year revenue growth (TTM) is 11.06%. The firm’s financial leverage is 1.06.
Short Interest Note:
The short interest for the firm is 6.90%% as of 07/15/2011.
3. Akamai Technologies, Inc. (NASDAQ: AKAM)
Sector | Technology |
Industry | Software - Application |
Market Cap | $ 3,916M |
Beta | 0.42 |
Analyst Sentiment | 13/25– List Buy/ Outperform (Bullish) |
The company offers acceleration & delivery improvement services of applications & content over the Internet. The firm’s 1-year revenue growth (TTM) is 11.06%. The firm’s financial leverage is 1.07.
Short Interest Note:
The short interest for the firm is 4.40% as of 07/15/2011.
4. Intrepid Potash, Inc. (NYSE: IPI)
Sector | Basic Materials |
Industry | Agricultural Inputs |
Market Cap | $ 2,058M |
Beta | 1.53 |
Analyst Sentiment | 9/13 – List Buy/Outperform (Bullish) |
The company is a produce of Potash. The firm’s 1-year revenue growth (TTM) is 19.05 %. The firm’s financial leverage is 1.07.
Short Interest Note:
The short interest for the firm is 12.70% as of 07/15/2011. Given the short number this company may be a short favorite or potentially a great short squeeze.
5. Cree, Inc. (NASDAQ: CREE)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $ 3,228M |
Beta | 0.90 |
Analyst Sentiment | 12/24 – List Buy/Outperform (Neutral) |
The company develops and manufactures semiconductor materials and electronic devices. The firm’s 1-year revenue growth (TTM) is 52.89%. The firm’s financial leverage is 1.08.
Short Interest Note:
The short interest for the firm is 17.30% as of 07/15/2011. Given the short number this company may be a short favorite or potentially a great short squeeze.
6. Pacific Airport Group (NYSE: PAC)
Sector | Industrials |
Industry | Airports & Air Services |
Market Cap | $ 2,092M |
Beta | 1.20 |
Analyst Sentiment | 3/6 – List Hold/ Neutral (Neutral) |
The company develops, manages, & operates airport facilities primarily in Mexico. The firm’s 1-year revenue growth (TTM) is 33.91%. The firm’s financial leverage is 1.08.
Short Interest Note:
NA
7. Kinder Morgan Management LLC (NYSE: KMR)
Sector | Energy |
Industry | Oil & Gas Midstream |
Market Cap | $ 5,643M |
Beta | 2.18 |
Analyst Sentiment | 4/8 – List Hold/ Neutral (Neutral) |
The company manages and control the business affairs for Kinder Morgan Energy Partners, L.P. & is a limited partner of the referenced LP. The firm’s 1-year revenue growth (TTM) is 31.02%. The firm’s financial leverage is 1.09.
Short Interest Note:
The short interest for the firm is 3.00% as of 07/15/2011.
8. MarketAxess Holdings, Inc. (NASDAQ: MKTX)
Sector | Capital Markets |
Industry | Financial Services |
Market Cap | $ 892M |
Beta | 1.06 |
Analyst Sentiment | 3/5 – List Hold / Neutral (Neutral) |
The Company manages a platform for electronic trading for various fixed-income securities. The firm’s 1-year revenue growth (TTM) is 27.78%. The firm’s financial leverage is 1.10.
Short Interest Note:
The short interest for the firm is 3.30% % as of 07/15/2011.
9. Thoratec Laboratories Corporate, (NASDAQ: THOR)
Sector | Healthcare |
Industry | Medical Devices |
Market Cap | $ 1,891M |
Beta | 0.83 |
Analyst Sentiment | 12/22 – List Buy / Outperform (Bullish) |
The Company manufactures and sells medical devices. The firm’s 1-year revenue growth (TTM) is 36.79%. The firm’s financial leverage is 1.10.
Short Interest Note:
The short interest for the firm is 7.80% as of 07/15/2011.
10. Form Factor (NASDAQ: FORM)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $ 418M |
Beta | 1.11 |
Analyst Sentiment | 2/4 – List Hold / Neutral (Neutral) |
The Company develops & sells high performance semiconductor wafer probe cards. The firm’s 1-year revenue growth (TTM) is 39.33%. The firm’s financial leverage is 1.11.
Short Interest Note:
The short interest for the firm is 10.90% as of 07/15/2011.
We hope this help as investors due homework on firms that are trying to grow the top line without depending heavily on financial leverage. Given the short number this company may be a short favorite or potentially a great short squeeze.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
