Are you looking for mid-sized companies that still have room to grow? Interested in gaining exposure to services companies? Do you prefer companies with strong profits? Do you prefer stocks that are projected to grow over the next year? We ran a screen you might be interested in.
The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.
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.
We first looked for mid cap services stocks. From here, we then looked for companies with strong profitability (Net Margin [TTM] >10%)(1-year fiscal EPS growth rate>10%). From here, we then looked for companies that have expected earnings per share growth of more than 25 percent for next year(1-year projected EPS Growth Rate>25%).
Do you think these mid-cap stocks offer both value and growth? Use our list along with your own analysis.
1) SIRIUS XM Radio Inc. (SIRI)
|Industry:||Broadcasting - Radio|
SIRIUS XM Radio Inc. has a Net Margin of 14.75% and Earnings Per Share Growth Rate of 874.48% and 1-Year Projected Earnings Per Share Growth Rate of 57.14%. The short interest was 7.27% as of 05/24/2012. Sirius XM Radio Inc. provides satellite radio services in the United States and Canada.
The company broadcasts approximately 135 channels, including music, sports, entertainment, comedy, talk, news, traffic, and weather channels on subscription fee basis through two satellite radio systems. It also offers music genres, such as rock, pop, and hip-hop, as well as dance, jazz, Latin, and classical music; advertising on non-music channels; and applications to allow consumers to access Internet services on mobile devices.
2) MGM Resorts International (MGM)
|Industry:||Resorts & Casinos|
MGM Resorts International has a Net Margin of 36.20% and Earnings Per Share Growth Rate of 274.02% and 1-Year Projected Earnings Per Share Growth Rate of 55.30%. The short interest was 8.49% as of 05/24/2012. MGM Resorts International, through its subsidiaries, owns and operates casino resorts. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company also owns and operates Shadow Creek golf course in North Las Vegas; Fallen Oak golf course in Saucier, Mississippi; and the Primm Valley golf club at the California state line.
3) HMS Holdings Corp. (HMSY)
HMS Holdings Corp. has a Net Margin of 11.58% and Earnings Per Share Growth Rate of 16.37% and 1-Year Projected Earnings Per Share Growth Rate of 45.90%. The short interest was 5.50% as of 05/24/2012. HMS Holdings Corp. provides cost containment services to government and private healthcare payers and sponsors.
The company's services include coordination of benefits and program integrity services. Its coordination of benefits services provide cost avoidance services that offer validated insurance coverage information, which is used by government-sponsored payers to coordinate benefits for incoming claims; and program integrity services identify improper payments on a pre-payment and post-payment basis, recover overpayments, detect and prevent fraud and abuse, and identify process improvements.
4) Air Lease Corporation (AL)
|Industry:||Rental & Leasing Services|
Air Lease Corporation has a Net Margin of 18.59% and Earnings Per Share Growth Rate of 171.91% and 1-Year Projected Earnings Per Share Growth Rate of 42.28%. The short interest was 8.57% as of 05/24/2012. Air Lease Corporation engages in the purchase and leasing of commercial aircraft to airlines worldwide.
The company also provides fleet management and remarketing services, including leasing, re-leasing, lease management, and sales services to investors and/or owners of aircraft portfolios. As of December 31, 2011, it had a fleet of 102 aircraft comprising 81 single-aisle jet aircraft, 19 twin-aisle widebody aircraft, and 2 turboprop aircraft.
*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.