A large cap company with room for growth might sound like an oxymoron, but the truth is that large cap companies have not gotten to where they are by twiddling their thumbs. These companies have grown due to smart innovations, steady profitability, and a deep understanding of their core value propositions. If these kinds of companies appeal to you as an investor, then you'll probably like the list we came up with today.
EPS growth (earnings per share growth) measures earnings per share over time. This metric helps 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.
1- Year Expected EPS growth (earnings per share growth) illustrates the growth of earnings per share over the next year. 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 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
We first looked for large cap stocks. We then looked for companies that have high future earnings per share growth forecasts(1-year projected EPS Growth Rate>25%). We then looked for companies that have posted strong earnings growth for shareholders over an extended period of time (1-year fiscal EPS growth rate>10%)(Net Margin [TTM]>10%). We did not screen out any sectors.
Do you think these large-cap stocks failed to price their value accurately? Use our screened list as a starting point for your own analysis.
1) Facebook, Inc. (NASDAQ:FB)
|Industry:||Internet Information Providers|
Facebook, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 32.65% and Earnings Per Share Growth Rate of 79.57% and Net Margin of 26.95%. The short interest was 0.00% as of 06/05/2012. Facebook, Inc. operates as a social networking company worldwide. The company builds tools that enable users to connect, share, discover, and communicate with each other; enables developers to build social applications on Facebook or to integrate their Websites with Facebook; and offers products that enable advertisers and marketers to engage with its users. As of February 2, 2012, it had 845 million monthly users and 443 million daily users.
2) Harley-Davidson, Inc. (NYSE:HOG)
Harley-Davidson, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 27.40% and Earnings Per Share Growth Rate of 110.95% and Net Margin of 10.89%. The short interest was 3.47% as of 06/05/2012. Harley-Davidson, Inc. engages in the production and sale of heavyweight motorcycles. It operates in two segments, Motorcycles and Related Products, and Financial Services. The Motorcycles and Related Products segment designs, manufactures, and sells cruiser and touring motorcycles for the heavyweight market.
3) Continental Resources Inc. (NYSE:CLR)
|Industry:||Independent Oil & Gas|
Continental Resources Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 32.56% and Earnings Per Share Growth Rate of 142.92% and Net Margin of 30.53%. The short interest was 9.30% as of 06/05/2012. Continental Resources, Inc. engages in the exploration, development, and production of crude oil and natural gas primarily in the north, south, and east regions of the United States. The company primarily sells its oil and natural gas production to end users, as well as to midstream marketing companies or oil refining companies at the lease. As of December 31, 2011, its estimated proved reserves were 508.
4) EOG Resources, Inc. (NYSE:EOG)
|Industry:||Independent Oil & Gas|
EOG Resources, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 28.54% and Earnings Per Share Growth Rate of 549.16% and Net Margin of 11.61%. The short interest was 1.28% as of 06/05/2012. EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of crude oil and natural gas primarily in the United States, Canada, the Republic of Trinidad and Tobago, the United Kingdom, the People's Republic of China, and the Argentine Republic. As of December 31, 2011, it had a total estimated net proved reserves of 2,054 million barrels of oil equivalent (MMBoe), of which 517 million barrels (MMBbl) were crude oil and condensate reserves, and 228 MMBbl were natural gas liquids reserves; and 7,851 billion cubic feet were natural gas reserves. The company held approximately 572,000 net acreage position in the oil window of the Eagle Ford Shale Play near San Antonio, Texas.
5) Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)
Alexion Pharmaceuticals, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 40.22% and Earnings Per Share Growth Rate of 75.18% and Net Margin of 22.49%. The short interest was 1.95% as of 06/05/2012. Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the innovation, development, and commercialization of life-transforming therapeutic products for treating patients with severe and ultra-rare disorders in the United States, Europe, Latin America, Japan, and the Asia Pacific. It focuses on developing products for the treatment of diseases in the areas of hematology, nephrology, neurology, metabolic disorders, oncology, and ophthalmology. The company offers Soliris(eculizumab), a therapeutic product for the treatment of patients with paroxysmal nocturnal hemoglobinuria (PNH), a blood disorder; and atypical hemolytic uremic syndrome (aHUS), an ultra-rare and life-threatening genetic disease.
6) priceline.com Incorporated (NASDAQ:PCLN)
priceline.com Incorporated has a 1-Year Projected Earnings Per Share Growth Rate of 25.09% and Earnings Per Share Growth Rate of 99.37% and Net Margin of 24.80%. The short interest was 5.83% as of 06/05/2012. priceline.com Incorporated, together with its subsidiaries, operates as an online travel company. The company provides price-disclosed hotel reservation services on a worldwide basis with approximately 185,000 hotels and accommodations in 160 countries primarily under the Booking.com and priceline.com domains.
*Company profiles were sourced from Finviz. Financial data was sourced from Google Finance and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.