Are you looking for mid-sized companies that still have room to grow? Do you prefer stocks that can bring in profits over the next year? Company liquidity is an important consideration in any stock analysis. Liquidity gives a company the ability to make big acquisitions if it sees investment opportunities, a cushion for future lulls in demand, and most importantly, it keeps a company's doors open. Are these the types of stocks that you're looking for? For ideas on how to start your own search, we ran a screen.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.
The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).
We first looked for mid-cap stocks. We next screened for businesses with estimated high-growth, with 1-year projected EPS growth above 25%. We next screened for businesses that have a substantial amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We did not screen out any sectors.
Do you think these mid-cap stocks are at too low of valuations, given their fundamentals? Use our screened list as a starting point for your own analysis.
|Industry:||Scientific & Technical Instruments|
Cepheid has a 1-Year Projected Earnings Per Share Growth Rate of 229.41%; a Current Ratio of 3.06; and a Quick Ratio of 2.08. The short interest was 10.83% as of 05/07/2012. Cepheid, a molecular diagnostics company, engages in developing, manufacturing, and marketing integrated systems for testing in the clinical market, as well as for application in legacy biothreat, industrial, and partner markets. Its systems enable molecular testing for organisms and genetic-based diseases by automation. The company offers GeneXpert system that integrates sample preparation in addition to DNA amplification and detection; and SmartCycler system, which integrates DNA amplification and detection to allow rapid analysis of a sample.
Allied Nevada Gold Corp. (ANV)
Allied Nevada Gold Corp. has a 1-Year Projected Earnings Per Share Growth Rate of 59.57%; Current Ratio of 9.37; and Quick Ratio of 7.07. The short interest was 5.92% as of 05/07/2012. Allied Nevada Gold Corp., together with its subsidiaries, engages in the evaluation, acquisition, exploration and advancement of gold exploration and development projects. It principally operates the Hycroft Mine, an open pit heap leach gold and silver mine covering approximately 61,389 acres of mineral rights located in the west of Winnemucca, Nevada. The company is also involved in the exploration and development of various exploration properties, including Hasbrouck, Mountain View, Three Hills, Wildcat, Maverick Springs, and Pony Creek/Elliot Dome projects.
BioMarin Pharmaceutical Inc. (BMRN)
BioMarin Pharmaceutical Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 47.30%; Current Ratio of 4.28; and Quick Ratio of 3.25. The short interest was 9.40% as of 05/07/2012. BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and rest of the world. The company's commercial products include Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase enzyme used for the treatment of mucopolysaccharidosis (MPS) VI; Kuvan, a proprietary synthetic oral form of 6R-BH4 used to treat patients with phenylketonuria (PKU), a metabolic disease; Aldurazyme used for the treatment of mucopolysaccharidosis I, a genetic disease; and Firdapse used to treat Lambert Eaton Myasthenic Syndrome, an autoimmune disease. It develops GALNS, an enzyme replacement therapy for the treatment of MPS IVA, a lysosomal storage disorder; PEG-PAL, an enzyme substitution therapy that is under Phase II clinical trial to treat PKU; BMN-673, a Phase I/II clinical trial product for the treatment of cancer; BMN-701, an enzyme replacement therapy, which is under Phase I/II clinical trials for Pompe disease, a glycogen storage disorder; and BMN-111, a peptide therapeutic that is under Phase I clinical trial for the treatment of achondroplasia.
Bally Technologies, Inc. (BYI)
Bally Technologies, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 27.69%; Current Ratio of 2.43; and Quick Ratio of 2.00. The short interest was 8.58% as of 05/07/2012. Bally Technologies, Inc. operates as a diversified gaming company. The company designs, manufactures, operates and distributes technology-based gaming devices, systems and server-based solutions worldwide. It offers technology solutions, which provide gaming operators with a range of marketing, data management and analysis, accounting, player tracking, security and other software applications and tools to manage their operations.
Alkermes plc (ALKS)
Alkermes plc has a 1-Year Projected Earnings Per Share Growth Rate of 53.20%; Current Ratio of 3.86; and Quick Ratio of 3.39. The short interest was 7.21% as of 05/07/2012. Alkermes plc, an integrated biotechnology company, develops medicines that enhance patient outcomes. The company has a diversified portfolio of approximately 20 commercial drug products and a clinical pipeline of product candidates that address central nervous system (CNS) disorders, such as addiction, schizophrenia, and depression. It manufactures and commercializes VIVITROL for alcohol and opioid dependence; RISPERDAL CONSTA for schizophrenia and bipolar I disorder; INVEGA SUSTENNA for the treatment of schizophrenia; AMPYRA to improve walking in patients with multiple sclerosis; and BYDUREON for the treatment of type II diabetes.
Atmel Corporation (ATML)
|Industry:||Semiconductor - Broad Line|
Atmel Corporation has a 1-Year Projected Earnings Per Share Growth Rate of 61.90%; Current Ratio of 3.44; and Quick Ratio of 2.15. The short interest was 6.31% as of 05/07/2012. Atmel Corporation designs, develops, manufactures, and sells semiconductor integrated circuit (IC) products. The company's Microcontrollers segment provides various proprietary and standard microcontrollers, such as Atmel's capacitive touch products, including maXTouch and QTouch, AVR 8-bit and 32-bit products, ARM-based products, and Atmel's 8051 8-bit products. Its Nonvolatile Memories segment offers serial interface electrically erasable programmable read-only memory and serial interface flash memory products; and parallel interface flash memories, as well as parallel interface electrically erasable programmable read-only memory and erasable programmable read-only memory devices.
*Company profiles were sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.