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How well a company is run has big implications to its profitability and stock performance. One way to gauge the effectiveness of management is by looking at a company’s corporate governance policies.

Institutional Shareholder Services (ISS) gives ratings for four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

We ran a screen on large-cap companies with high growth prospects, with 5-year projected EPS growth exceeding 20%. We screened these stocks for those with ‘low concern’ ratings in at least three of the four corporate governance categories from ISS.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Click to enlarge

Do you think these companies have strong prospects? Use this list as a starting-off point for your own analysis.

List sorted by 5-year projected EPS growth.

1. Range Resources Corporation (NYSE:RRC): Engages in the acquisition, exploration, and development of natural gas properties primarily in the Appalachian and southwestern regions of the United States. Market cap of $10.91B. Analyst projected EPS growth over the next 5 years at 39.98%. According to ISS, the company has 'low concern' in all corporate governance categories except for ‘medium concern’ in the Compensation Risk category. The stock has gained 58.81% over the last year.

2. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN): Engages in the discovery, development, and commercialization of biologic therapeutic products in the United States, Europe, Latin America, Japan, and the Asia Pacific. Market cap of $11.86B. Analyst projected EPS growth over the next 5 years at 37.08%. According to ISS, the company has 'low concern' in all corporate governance categories except for ‘medium concern’ in the Compensation Risk category. The stock has gained 76.84% over the last year.

3. priceline.com Incorporated (NASDAQ:PCLN): Operates as an online travel company. Market cap of $26.70B. Analyst projected EPS growth over the next 5 years at 26.45%. According to ISS, the company has 'low concern' in all corporate governance categories except for ‘medium concern’ in the Compensation Risk category. The stock has had a couple of great days, gaining 8.69% over the last week.

4. Baker Hughes Incorporated (NYSE:BHI): Supplies wellbore related products, and technology services and systems for drilling, formation evaluation, completion and production, and reservoir technology and consulting to the oil and natural gas industry worldwide. Market cap of $24.34B. Analyst projected EPS growth over the next 5 years at 26.10%. According to ISS, the company has 'low concern' in all corporate governance categories except for ‘medium concern’ in the Compensation Risk category. The stock has gained 11.92% over the last year.

5. Caterpillar Inc. (NYSE:CAT): Manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Market cap of $59.21B. Analyst projected EPS growth over the next 5 years at 24.28%. According to ISS, the company has 'low concern' in all corporate governance categories. The stock has had a good month, gaining 14.24%.

6. Amazon.com Inc. (NASDAQ:AMZN): Operates as an online retailer in North America and internationally. Market cap of $96.05B. Analyst projected EPS growth over the next 5 years at 23.59%. According to ISS, the company has 'low concern' in all corporate governance categories. The stock has performed poorly over the last month, losing 10.3%.

7. Chipotle Mexican Grill, Inc. (NYSE:CMG): Develops and operates fast-casual, fresh Mexican food restaurants in the United States. Market cap of $10.42B. Analyst projected EPS growth over the next 5 years at 22.99%. According to ISS, the company has 'low concern' in all corporate governance categories except for ‘medium concern’ in the Shareholder Rights Risk category. The stock has gained 40.71% over the last year.

8. Schlumberger Limited (NYSE:SLB): Supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Market cap of $98.10B. Analyst projected EPS growth over the next 5 years at 22.27%. According to ISS, the company has 'low concern' in all corporate governance categories. The stock has lost 0.94% over the last year.

9. Southwestern Energy Co. (NYSE:SWN): Engages in the exploration, development, and production of natural gas and crude oil in the United States. Market cap of $14.06B. Analyst projected EPS growth over the next 5 years at 20.81%. According to ISS, the company has 'low concern' in all corporate governance categories except for ‘medium concern’ in the Compensation Risk category. The stock has had a good month, gaining 12.99%.

10. Cameron International Corporation (NYSE:CAM): Provides flow equipment products, systems, and services to oil, gas, and process industries worldwide. Market cap of $12.12B. Analyst projected EPS growth over the next 5 years at 20.70%. According to ISS, the company has 'low concern' in all corporate governance categories except for ‘medium concern’ in the Shareholder Rights Risk category. The stock has gained 7.53% over the last year.

*ISS ratings sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 10 Large-Cap, High-Growth Stocks With Strong Corporate Governance