Are you looking for mid-sized companies that still have room to grow? Do you prefer stocks with high projected earnings 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 go about your analysis, here is a list you might be interested in.
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. Next, we then screened for businesses that have expected earnings per share growth of more than 25 percent for next year(1-year projected EPS Growth Rate>25%). We then looked for companies 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 will perform well? Please use our list to assist with your own analysis.
1) Dril-Quip, Inc. (NYSE:DRQ)
|Industry:||Oil & Gas Equipment & Services|
Dril-Quip, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 29.31% and Current Ratio of 5.47 and Quick Ratio of 3.45. The short interest was 8.06% as of 05/24/2012. Dril-Quip, Inc. designs, manufactures, fabricates, inspects, assembles, tests, and markets engineered offshore drilling and production equipment for use in deepwater, harsh environment, and severe service applications worldwide. Its principal products include subsea and surface wellheads, subsea and surface production trees, subsea control systems and manifolds, mudline hanger systems, specialty connectors and associated pipes, drilling and production riser systems, liner hangers, and wellhead connectors and diverters. The company's products are used to explore for oil and gas on offshore drilling rigs, such as floating rigs and jack-ups.
2) Allied Nevada Gold Corp. (NYSEMKT:ANV)
Allied Nevada Gold Corp. has a 1-Year Projected Earnings Per Share Growth Rate of 97.50% and Current Ratio of 10.62 and Quick Ratio of 7.24. The short interest was 5.55% as of 05/24/2012. 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.
3) EQT Corporation (NYSE:EQT)
EQT Corporation has a 1-Year Projected Earnings Per Share Growth Rate of 43.68% and Current Ratio of 2.24 and Quick Ratio of 2.15. The short interest was 1.91% as of 05/24/2012. EQT Corporation, together with its subsidiaries, operates as an integrated energy company in the United States. It operates in three segments: EQT Production, EQT Midstream, and Distribution. The EQT Production segment engages in the exploration, development, and production of natural gas, natural gas liquids, and crude oil in the Appalachian Basin.
4) Atwood Oceanics, Inc. (NYSE:ATW)
|Industry:||Oil & Gas Drilling & Exploration|
Atwood Oceanics, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 31.19% and Current Ratio of 2.76 and Quick Ratio of 2.21. The short interest was 6.86% as of 05/24/2012. Atwood Oceanics, Inc., an offshore drilling contractor, engages in the drilling and completion of exploratory and developmental oil and gas wells worldwide. The company owns 10 mobile offshore drilling units located in the U.S.
5) Cepheid (NASDAQ:CPHD)
|Industry:||Scientific & Technical Instruments|
Cepheid has a 1-Year Projected Earnings Per Share Growth Rate of 235.29% and Current Ratio of 3.06 and Quick Ratio of 2.08. The short interest was 11.33% as of 05/24/2012. 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.
6) Cree, Inc. (NASDAQ:CREE)
|Industry:||Semiconductor Equipment & Materials|
Cree, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 47.83% and Current Ratio of 7.20 and Quick Ratio of 5.97. The short interest was 19.50% as of 05/24/2012. Cree, Inc. develops and manufactures light emitting diodes (NASDAQ:LEDS), LED lighting, and semiconductor solutions for wireless and power applications. Its LED products include blue and green LED chips that are used in various applications, including video screens, gaming displays, function indicator lights, and automotive backlighting; LED components comprising a range of packaged LED products and LED modules for lighting applications; LED lighting products, such as LED downlights, LED troffers, and LED lamps or bulbs for construction, retrofit, and renovation projects in commercial, governmental, and residential applications; and silicon carbide (SiC) wafers, which are used in the manufacture of optoelectronics, microwave, power switching, and other applications. The company also provides semiconductor materials and devices primarily based on silicon carbide (SiC), gallium nitride (GaN), and related compounds.
7) BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
BioMarin Pharmaceutical Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 47.30% and Current Ratio of 4.28 and Quick Ratio of 3.25. The short interest was 9.60% as of 05/24/2012. 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.
8) Alkermes plc (NASDAQ:ALKS)
Alkermes plc has a 1-Year Projected Earnings Per Share Growth Rate of 100.00% and Current Ratio of 4.43 and Quick Ratio of 3.98. The short interest was 5.71% as of 05/24/2012. 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 (NYSE: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.
9) Atmel Corporation (NASDAQ:ATML)
|Industry:||Semiconductor - Broad Line|
Atmel Corporation has a 1-Year Projected Earnings Per Share Growth Rate of 60.53% and Current Ratio of 3.44 and Quick Ratio of 2.15. The short interest was 5.29% as of 05/24/2012. 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.