16 High Gross Margins Coupled With Steady Earnings Growth

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Includes: BMRN, CPA, CTCM, CXO, CYBX, CYOU, DLB, DLLR, DX, EBIX, GILD, KWK, NUVA, PWRD, SOHU, WRLD
by: Edgar Ambartsoumian
Measuring a company’s efficiency in controlling its costs is imperative to the company’s bottom line. Gross margins may vary dramatically from one industry to the other. Manufacturing, retail, and chemical companies will definitely not have the same level of gross margins as, for instance, software companies.
To bring an overall balance to the mix, I’ve also included high EPS growth companies with strong PEG ratios. I’ve chosen more than a dozen stocks that have the following criteria combinations: have had their EPS rise over 20% in the last 5 years, have maintained a PEG ratio of less than 1, and gross margins of over 70%.
Company Name Ticker Gross Margins EPS Growth (past 5 yrs.) PEG
BioMarin Pharmaceutical Inc. BMRN 81.28% 37.13% 0.89
Copa Holdings SA CPA 72.54% 23.10% 0.90
CTC Media, Inc. CTCM 94.40% 20.26% 0.15
Concho Resources, Inc. CXO 83.04% 54.67% 0.89
Cyberonics Inc. CYBX 87.66% 54.19% 0.62
Changyou.com Ltd. CYOU 88.47% 24.75% 0.22
Dolby Laboratories, Inc. DLB 88.09% 37.39% 0.65
DFC Global Corp. DLLR 95.57% 46.17% 0.78
Dynex Capital Inc. DX 72.91% 32.24% 0.85
Ebix, Inc. EBIX 79.21% 57.95% 0.57
Gilead Sciences Inc. GILD 75.52% 31.09% 0.75
Quicksilver Resources, Inc. KWK 86.42% 35.22% 0.79
NuVasive, Inc. NUVA 81.52% 96.65% 0.60
Perfect World Co. PWRD 82.48% 24.69% 0.29
Sohu.com SOHU 73.59% 35.19% 0.72
World Acceptance Corp. WRLD 77.42% 22.79% 0.89
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.