Finding growth relative to large cap names seems to have almost turned into a game of “where is Waldo?”. The developed world seems unrealistic as economists and the like lower their forecasts. Emerging markets on the other hand are just as scary to some investors due to the fear of slowing “super” growth. One strategy that can help investors identify growing large cap stocks is to look for characteristics that illustrate secular growth in combination with strong fundamentals.
We ran a screen for large cap companies that have illustrated strong growth over multiple periods (1-year fiscal revenue growth>10%). From this narrowed pool we then screened for companies with strong execution relative to profitability (ROE TTM>15%).
The list is ranked from highest to lowest by 1-year fiscal revenue growth:
1. ASML Holding NV (ASML)
Sector | Technology |
Industry | Semiconductor Equipment and Materials |
Market Cap | $14360 million |
Beta | 1.5 |
Analyst Sentiment | 3/5 – List Buy/ Outperform (Bullish) |
The company produces integrated circuits and lithography systems. The company’s 1-year fiscal revenue growth rate is 182.44%. ASML’s return on equity is 57.91%. The short interest for the company is N/A as of 8/15/2011.
2. Vale S.A. (VALE)
Sector | Basic Materials |
Industry | Industrial Metals and Minerals |
Market Cap | $133744 million |
Beta | 1.49 |
Analyst Sentiment | 19/23-List Buy/Outperform (Bullish) |
The company produces and sells metals in Brazil and beyond. VALE’s 1-year fiscal revenue growth rate is 94.3%. The company’s return on equity is 42.72%. The short interest for the company is N/A as of 8/15/2011.
3. Applied Materials, Inc. (AMAT)
Sector | Technology |
Industry | Semiconductor Equipment and Materials |
Market Cap | $14263 million |
Beta | 1.27 |
Analyst Sentiment | 13/23-List Hold/Neutral (Neutral) |
The company manufactures equipment and software for the semiconductor, solar, and other industries worldwide. The company’s 1-year fiscal revenue growth rate is 90.46%. The company’s return on equity is 20.46%. The short interest for the company is 2% as of 8/15/2011.
4. Express Scripts (ESRX)
Sector | Healthcare |
Industry | Health Care Plans |
Market Cap | $21916 million |
Beta | 0.82 |
Analyst Sentiment | 19/24-List Buy/Outperform (Bullish) |
The company offers a range of pharmacy benefit management services. ESRX’s 1-year fiscal revenue growth rate is 81.91%. The company’s return on equity is 47.19%. The short interest for the company is 11% as of 8/15/2011.
5. Baidu, Inc. (BIDU)
Sector | Technology |
Industry | Internet Content and Information |
Market Cap | $44308 million |
Beta | 1.47 |
Analyst Sentiment | 31/35 – List Buy/ Outperform (Bullish) |
The company is the leading Chinese internet search engine. The company’s 1-year fiscal revenue growth rate is 77.96%. The company’s return on equity is 56.76%. The short interest for the company is N/A as of 8/15/2011.
6. Silver Wheaton Corporation (SLW)
Sector | Basic Materials |
Industry | Silver |
Market Cap | $13581 million |
Beta | 1.64 |
Analyst Sentiment | 11/12-List Buy/Outperform (Bullish) |
The company has silver streaming operations worldwide. The company’s 1-year fiscal revenue growth rate is 76.92%. The company’s return on equity is 23.02%. The short interest for the company is N/A as of 8/15/2011.
7. CNOOC, Ltd. (CEO)
Sector | Energy |
Industry | Oil and Gas E&P |
Market Cap | $81575 million |
Beta | 1.23 |
Analyst Sentiment | 18/29-List Buy/Outperform (Bullish) |
The company produces and sells crude oil, natural gas, and other petroleum products. The company’s 1-year fiscal revenue growth rate is 74.01%. The company’s return on equity is 27.92%. The short interest for the company is N/A as of 8/15/2011.
8. Potash Corporation of Saskatch (POT)
Sector | Basic Materials |
Industry | Agricultural Inputs |
Market Cap | $43349 million |
Beta | 1.1 |
Analyst Sentiment | 19/26-List Buy/Outperform (Bullish) |
Potash Corporation of Saskatchewan Inc. produces and sells fertilizers primarily in the US and Canada. The company’s 1-year fiscal revenue growth rate is 64.42%. The company’s return on equity is 34.03%. The short interest for the company is N/A as of 8/15/2011.
9. Yanzhou Coal Mining Company (YZC)
Sector | Basic Materials |
Industry | Coal |
Market Cap | $14126 million |
Beta | 2.41 |
Analyst Sentiment | 24/28-List Buy/Outperform (Bullish) |
The company mines and sells coal all over the world. The company’s 1-year fiscal revenue growth rate is 64.16%. The company’s return on equity is 27.56%. The short interest for the company is 2.3% as of 8/15/2011.
10. Altera Corp. (ALTR)
Sector | Technology |
Industry | Semiconductors |
Market Cap | $10696 million |
Beta | 1.04 |
Analyst Sentiment | 24/28-List Buy/Outperform (Bullish) |
The company designs and sells programmable hardcopy application-specific integrated circuit (ASIC) devices, logic devices (PLD), and pre-defined design building blocks. The company’s 1-year fiscal revenue growth rate is 63.49%. The company’s return on equity is 39.88%. The short interest for the company is 4% as of 8/15/2011.
We hope this list helps as investors do their own due diligence on large cap companies with the potential to continue growing by a good rate.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
