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There are many different strategies to trade stocks and one of them is to find the fundamentals of the company along with growth potential. The main factor is to identify the companies that are still growing at a fast enough pace that drives stock prices, but with valuations low enough to attract investors. The combination of both growth and low valuations is important for the investors to rely on the company.

In this article, I will focus on 6 stocks with attractive EPS growth and having a Zacks Recommendation of a Buy or a Hold. Use this list as a potential starting point for your analysis. I have screened these 6 stocks based on the following criteria:

  • Market Cap: Greater than or Equal to $2.0B
  • Zacks Investment Research Is Either: Buy or Hold
  • EPS Growth (Proj This Quarter vs. Same Quarter Prior Yr): Greater than or Equal to 17.00%
  • EPS Growth (Proj this Yr vs. Last Yr): Greater than or Equal to 17.00%
  • P/E (This Year's Estimate): Less than or Equal to 12.0
  • PEG Ratio: Less than or Equal to 1.0
  • Price/Sales Ratio: Less than or Equal to 1.0
  • Security Price: Greater than or Equal to $5.00
  • Volume (90 day Average): Greater than or Equal to 50.0K

The following table shows the list of 6 attractive stocks:

(click to enlarge)

1. DELTA AIR LINES INC.(NYSE:DAL): Delta Air Lines provides scheduled air transportation for passengers and cargo throughout the United States and around the world. Delta Air Lines has a market cap of $9.020B. Delta Air Lines is currently trading around $10.725, with a 52 week range of $6.41 - 11.60. Revenue growth for the last quarter is 7.83% when compared to same quarter prior year. Projected EPS growth for this year is 60.07% when compared to last year. DAL has 1.96% return on assets and 250% return on equity. The stock has 33.75% price performance for the year 2012.

2. SEAGATE TECHNOLOGY PLC (NASDAQ:STX): Seagate Technology designs, manufactures, markets and sells hard disk drives. Seagate Technology has a market cap of $13.031B. Seagate Technology is currently trading around $29.04, with a 52 week range of $9.05 - 29.59. Revenue growth for the last quarter is 65.12% when compared to same quarter the prior year. Projected EPS growth for this year is 464% when compared to last year. STX has 21.17% return on assets and 65.45% return on equity. The stock has 76.59% price performance for the year 2012.

3. NABORS INDUSTRIES LTD (NYSE:NBR): Nabors Industries is a land drilling contractor. The Company is also a land well-servicing and workover contractor in the United States and Canada. Nabors Industries has a market cap of $4.587B. Nabors Industries is currently trading around $15.89 with a 52 week range of $11.05 - 32.41. Revenue growth for the last quarter is 31.61% when compared to same quarter the prior year. Projected EPS growth for this year is 45.81% when compared to last year. NBR has 2.77% return on assets and 6.11% return on equity. The stock has -8.65% price performance for the year 2012.

4. SUPERIOR ENERGY SERVICES INC. (NYSE:SPN): Superior Energy Services is a diversified provider of specialized oilfield services and equipment. Superior Energy Services has a market cap of $3.976B. Superior Energy Services is currently trading around $25.23 with a 52 week range of $22.19 - 42.87. Revenue growth for the last quarter is 26.95% when compared to same quarter the prior year. Projected EPS growth for this year is 57.32% when compared to last year. SPN has 4.13% return on assets and 10.21% return on equity. The stock has -9.18% price performance for the year 2012.

5. WEATHERFORD INTERNATIONAL LTD (NYSE:WFT): Weatherford International is a provider of equipment and services used in the drilling, evaluation, completion, production and intervention of oil and natural gas wells. Weatherford International has a market cap of $10.630B. Weatherford International is currently trading around $14 with a 52 week range of $10.85 - 22.76. Revenue growth for the last quarter is 26.91% when compared to same quarter prior year. Projected EPS growth for this year is 84.57% when compared to last year. WFT has 1.28% return on assets and 2.69% return on equity. The stock has -6.42% price performance for the year 2012.

6. OWENS-ILLINOIS INC. (NYSE:OI): Owens-Illinois is a manufacturer of glass containers with 81 glass manufacturing plants in 21 countries. It produces glass containers for beer, ready-to-drink low alcohol refreshers, spirits, wine, food, tea, juice and pharmaceuticals. Owens-Illinois has a market cap of $3.939B. Owens-Illinois is currently trading around $23.96, with a 52 week range of $13.43 - 33.32. Revenue growth for the last quarter is 5.21% when compared to same quarter prior year. Projected EPS growth for this year is 23.16% when compared to last year. OI has -5.3% return on assets and -29.66% return on equity. The stock has 23.32% price performance for the year 2012.

Sources: Some of the data is sourced from Google Finance, Yahoo Finance and investors site.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to the investors to make the correct decision after necessary research.

Source: 6 Stocks With Strong Fundamentals And Attractive Growth