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Strong top line growth sounds great in an earnings release but what is left at the bottom of the Income Statement is just as important. In our view it doesn’t matter if a company is growing by leaps and bounds on the top line if it's leaving shareholders with pennies on the dollar relative to earnings.

EPS is reviewed in detail because its a profitability ratio that specifically illustrates profitability per unit of shareholder ownership. EPS Growth trends tell investors whether earnings are steady, accelerating, sporadic, or declining. Ultimately, this helps investors get a better picture of whether or not a company is increasing its profitability.

We ran a screen for companies that have come off their 52-Week Lows and that also posted strong 1-Year Fiscal EPS Growth (X>15%). From this narrowed pool we then screened for firm’s that had also outperformed the S&P 500 (SPY) over the last month.

The list is ranked from lowest to highest relative to how far they come off their 52 Week Low.

1. WNS holdings (WNS)

Sector

Industrials

Industry

Business Services

Market Cap

$465M

Beta

1.1

Analyst Sentiment

8/11-List Hold/Neutral (Neutral)

The company offers offshore business outsourcing services. It is 22.08% above its 52- Week low. WNS’s 1-Year Fiscal EPS Growth is 162.5%. The 1-Month Return is 11.39%. The short interest is N/A as of 8/15/2011.

2. Gold Fields Ltd (GFI)

Sector

Basic Materials

Industry

Gold

Market Cap

$12175M

Beta

0.64

Analyst Sentiment

4/6 – List Buy/ Outperform (Bullish)

The company does surface and underground mining in Australia, South America, and Africa. The company is 23.64% above its 52-Week Low. GFI’s 1-Year Fiscal EPS Growth is 129.17%. The 1-Month Return is 8.65%. The short interest is N/A as of 8/15/2011.

3. Eldorado Gold Corp (EGO)

Sector

Basic Materials

Industry

Gold

Market Cap

$10647M

Beta

0.46

Analyst Sentiment

13/19-List Buy/Outperform (Bullish)


The company acquires, develops, and operates gold mines in Brazil, China, Greece, and Turkey. It is 45.35% above its 52 week low. EGO’s 1-Year Fiscal EPS Growth is 46.15%. The 1-Month Return is 6.99%. The short interest is N/A as of 8/15/2011.

4. Nalco Holding Co (NLC)

Sector

Industrials

Industry

Pollution & Treatment Controls

Market Cap

4451

Beta

1.27

Analyst Sentiment

12/12-List Hold/Neutral (Neutral)

The company manufactures and sells specialized service chemical programs worldwide. It is 45.91% above its 52-week low. NLC’s 1-Year Fiscal EPS Growth is 220.45%. The 1-Month Return is 11.08%. The short interest is 1% as of 8/15/2011.

5. Randgold Resources, Ltd. (GOLD)

Sector

Basic Materials

Industry

Gold

Market Cap

$10026M

Beta

0.52

Analyst Sentiment

N/A

The company operates gold mines in west and central Africa. It is 56.73% above its 52-week low. The 1-Year Fiscal EPS Growth is 34.52%. GOLD’s 1- Month Return is 24.52%. The short interest is N/A as of 8/15/2011.

6. Yamana Gold, Inc. (AUY)

Sector

Basic Materials

Industry

Gold

Market Cap

$11564M

Beta

0.91

Analyst Sentiment

17/20-List Buy/Outperform (Bullish)

The company mines for gold and other precious metals. It is 58.59% above its 52- week low. The 1-Year Fiscal EPS Growth is 103.45%. AUY’s 1-Month Return is 20.33%. The short interest is N/A as of 8/15/2011.

7. Renaissance Learning, Inc. (RLRN)

Sector

Technology

Industry

Software - Application

Market Cap

$426M

Beta

0.97

Analyst Sentiment

1/1-List Buy/Outperform (Bullish)

The company offers computer-based assessment and periodic progress monitoring technology for US and international education systems. It is 82.83% above its 52- week low. RLRN’s 1-Year Fiscal EPS Growth is 20.59%. The 1-Month Return is 13.37%. The short interest is 4% as of 8/15/2011.

8. Emdeon Inc (EM)

Sector

Industrials

Industry

Business Services

Market Cap

$2144M

Beta

N/A

Analyst Sentiment

11/11-List Hold/Neutral (Neutral)


The company offers revenue and payment cycle management for the United States healthcare system. It is 85.93% above its 52-week low. The 1-Year Fiscal EPS Growth is 75%. The 1-Month Return is 43.08%. The short interest is 3% as of 8/15/2011.

9. Internet Initiative Japan, Inc (IIJI)

Sector

Communication Services

Industry

Telecom Services

Market Cap

$837M

Beta

1.76

Analyst Sentiment

3/7-List Sell/Underperform (Bearish)


The company offers Internet connectivity, outsourcing, and systems integration services for customers in Japan. It is 99.41% above its 52-week low. IIJI’s 1-Year Fiscal EPS Growth is 43.32%. The 1-Month Return is 8.81%. The short interest is N/A as of 8/15/2011.

We hope this list helps as investors do their own due diligence on companies that are rallying off their 52 week lows and hold strong EPS growth.

Source: 9 Stocks Beating The Market While Rallying Off Lows And Growing Earnings