Seeking Alpha
Long/short equity, deep value, value
Profile| Send Message|
( followers)

Market pundits would have you believe that the global economy is sluggish at best and that there is little companies can do to get around this supposed reality. Well we would like to dispel some of these negative views and highlight some companies that are beating out the "consensus" view that everyone keeps hearing. Today we found companies that illustrate there are still potential opportunities out there not only in the form of outperforming the market (S&P 500, SPY) but relative to posting strong top line growth over the last year in combination with strong profitability.

Return on Assets illustrates how much a firm is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the firm’s assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.

The 1-Year Fiscal Revenue Growth Rate represents a firm’s growth over an extended period of time. This is one of many great metrics to use when trying to identify which firms are navigating the global economic landscape and to see which firms generating positive, negative, or neutral growth trends.

We first looked for companies with strong profitability (ROA > 10%). From this narrowed list of candidates, we then looked for companies have posted strong top line growth over the last year (1-year fiscal revenue growth rate > 15%) that have also outperformed the S&P 500 over the last month. We did not screen out any sectors or market caps.

The list is ranked from highest to lowest by the ROA (TTM):

1. InterMune, Inc. (NASDAQ:ITMN)

Sector

Healthcare

Industry

Biotechnology

Market Cap

$1,515M

Beta

2.89

This biopharmaceutical company focuses on developing and commercializing therapies in pulmonology and hepatology. ITMN has a 1-year fiscal revenue growth rate of 432.43% and an ROA (TTM) of 40.10%. ITMN has gained by 27.25% in the last month. The short interest was N/A as of 10/14/2011.

2. Linear Technology. (NASDAQ:LLTC)

Sector

Technology

Industry

Semiconductors

Market Cap

$7,247M

Beta

0.99

The company designs, manufactures, and markets various analog integrated circuits worldwide. LLTC has a 1-year fiscal revenue growth rate of 26.84% and an ROA (TTM) of 35.61%. The company has gained by 18.46% in the last month. The short interest was 7.30% as of 10/14/2011.

3. VeriSign, Inc. (NASDAQ:VRSN)

Sector

Technology

Industry

Software - Application

Market Cap

$5,030M

Beta

0.66

The company provides Internet infrastructure services to various networks worldwide. VRSN has a 1-year fiscal revenue growth rate of 10.49% and an ROA (TTM) of 34.00%. The company has gained by 20.01% in the last month. The short interest was N/A as of 10/14/2011.

4. Coach, Inc. (NYSE:COH)

Sector

Consumer Cyclical

Industry

Luxury Goods

Market Cap

$18,177M

Beta

1.71

The company is a maker and marketer of fine accessories and gifts for women and men. The company has a 1-year fiscal revenue growth rate of 15.27% and an ROA (TTM) of 33.43%. COH has gained by 28.69% in the last month. The short interest was 1.80% as of 10/14/2011.

5. Strayer Education, Inc. (NASDAQ:STRA)

Sector

Consumer Defensive

Industry

Education & Training Services

Market Cap

$993M

Beta

0.62

The company provides post-secondary education services for working adults. The company has a 1-year fiscal revenue growth rate of 24.37% and an ROA (TTM) of 31.80 %. STRA has gained by 7.80% in the last month. The short interest was 28.80% as of 10/14/2011.

6. Baidu, Inc. (NASDAQ:BIDU)

Sector

Technology

Industry

Internet Content & Information

Market Cap

$47,136M

Beta

1.67

The company provides Chinese and Japanese language Internet search services. The company has a 1-year fiscal revenue growth rate of 77.96% and an ROA (TTM) of 31.06%. BIDU has gained by 35.34% in the last month. The short interest was N/A as of 10/14/2011.

7.Imax Corporation. (NYSE:IMAX)

Sector

Consumer Cyclical

Industry

Media - Diversified

Market Cap

$1,189M

Beta

1.92

The company, together with its subsidiaries, operates as an entertainment technology company worldwide. The company has a 1-year fiscal revenue growth rate of 45.21% and an ROA (TTM) of 28.87%. IMAX has gained by 41.49% in the last month. The short interest was 4.90% as of 10/14/2011.

8. Bridgepoint Education, Inc. (NYSE:BPI)

Sector

Consumer Def

Industry

Education & Training Services

Market Cap

$1,208M

Beta

2.33

The company provides postsecondary education services. BPI has a 1-year fiscal revenue growth rate of 56.99% and an ROA (TTM) of 27.07%. BPI has gained by 43.77% in the last month. The short interest was 74.00% as of 10/14/2011.

9. FactSet Research Systems, Inc. (NYSE:FDS)

Sector

Industrials

Industry

Business Services

Market Cap

$4,283M

Beta

1.08

The company provides financial and economic information to investment community worldwide. FDS has a 1-year fiscal revenue growth rate of 13.33% and an ROA (TTM) of 26.02%. FDS has gained by 15% in the last month. The short interest was 3.60% as of 10/14/2011.

10. Atmel Corporation. (NASDAQ:ATML)

Sector

Technology

Industry

Semiconductors

Market Cap

$4,790M

Beta

1.41

The company designs, develops, manufactures, and markets a range of semiconductor integrated circuit products. ATML has a 1-year fiscal revenue growth rate of 35.05% and an ROA (TTM) of 25.64%. The company has gained by 40.60% in the last month.The short interest was N/A as of 10/14/2011.

We hope this list helps as investors do their own due diligence on companies with strong performance, profitability, and top line growth.

Company profiles sourced from Finviz.

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

Source: 10 Profitable, Growing Stocks That Keep Topping The Market