Seeking Alpha
Recommended for you:
-
dasdasdasdadas
Long/short equity, deep value, value
Profile| Send Message|
( followers)  

A good way to judge and understand a company’s management effectiveness is by looking at its Return on Assets (ROA). This ratio gives an idea to investors as to how efficient management is at generating earnings from assets.

ROA is a profitability ratio that indicates how profitable a company is relative to its total assets. Of course management has a strong degree of influence on how this number comes out and in certain respects this is management's most critical job in terms of wisely allocating firm resources.

We ran a screen for mid cap companies that have come off their 52-Week Highs and demonstrate a sound Return on Assets (X>5%). From this narrowed pool we then screened for firm’s that had also outperformed the S&P 500 over the last month.

The list is ranked from highest to lowest by 1-Year Fiscal Revenue Growth.

1. Renaissance Learning, Inc. (NASDAQ: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. RLRN is 2.36% below its 52-Week High. The 1-Month Return is 13.37%. The company's Return on Assets is 44.41%. The short interest for the company is 4% as of 8/15/2011.

2. Eldorado Gold Corp (NYSE:EGO)

Sector

Basic Materials

Industry

Gold

Market Cap

$10647M

Beta

0.46

Analyst Sentiment

13/19-List Buy/Outperform (Bullish)

The company operates gold mining facilities in Turkey, China and Brazil. It is 4.15% below its 52-Week High. EGO’s 1-Month Return is 6.99%. The Return on Assets is 5.47%. The short interest is N/A as of 8/15/2011.

3. Telefonos de Mexico SAB de CV (NASDAQ:TFONY)

Sector

Communication Services

Industry

Telecom Services

Market Cap

$15300

MBeta

1.05

Analyst Sentiment

6/13-List Sell/Underperform (Bearish)


The company provides telecommunications services in Mexico. It is 14.25% below its 52-Week High. TFONY’s 1-Month Return is 6.73%. The Return on Assets is 9.48%. The short interest is N/A as of 8/15/2011.

4. Randgold Resources, Ltd. (NASDAQ: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 7% below its 52-Week High. GOLD’s 1-Month Return is 24.52%. The Return on Assets is 5.19%. The short interest is N/A as of 8/15/2011.

5. Giant Interactive Group, Inc. (NYSE:GA)

Sector

Industrials

Industry

Business Services

Market Cap

$1771M

Beta

0.54

Analyst Sentiment

8/12-List Buy/Outperform (Bullish)


The company develops and operates online games in China. It is 18.52% below its 52-Week High. GA’s 1-Month Return is 8.3%. The Return on Assets is 11.11%. The short interest is N/A as of 8/15/2011.


We hope this list helps as investors do their own due diligence on mid-cap companies outperforming the market.


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

Source: 5 Profitable, Mid-Cap Stocks Rallying Against The Market While Retracing From Their Highs