A large cap growth investment might sound like a contradiction, but bear in mind that large cap companies have not gotten to where they are by wasting their time. These companies have grown large due to smart innovations, strong profitability, and a deep understanding of their core value offerings. Analysts recognize these features, and so that's why we focused today on companies that are not only set for growth, but that also have 'Buy' recommendations by analysts. If these are the kinds of companies that appeal to you as an investor, then you'll probably like the list we came up with today.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for large cap stocks. Next, we then screened for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We then looked for businesses with projected high growth, measured by 5-year projected EPS growth above 25%. We did not screen out any sectors.
Do you think these large-cap stocks will continue to see such strong profitability? Use this list as a starting-off point for your own analysis.
1) Edwards Lifesciences Corp. (NYSE:EW)
|Industry:||Medical Appliances & Equipment|
Edwards Lifesciences Corp. has a Analysts' Rating of 2.00, and a 5-Year Projected Earnings Per Share Growth Rate of 26.32%. The short interest was 3.02% as of 06/26/2012. Edwards Lifesciences Corporation provides products and technologies to treat advanced cardiovascular diseases or critically ill patients worldwide. The company offers heart valve therapy products, including tissue heart valves and repair products, which are used to replace or repair a patient's diseased or defective heart valve; and produces pericardial and porcine valves from biologically inert animal tissue sewn onto proprietary wire form stents. It also provides critical care products comprising hemodynamic monitoring systems to measure a patient's heart function in surgical and intensive care settings; Swan-Ganz line of pulmonary artery catheters and PreSep continuous venous oximetry catheters for measuring central venous oxygen saturation; PediaSat oximetry catheters for children; and VolumeView sensor-catheters.
2) Salesforce.com (NYSE:CRM)
Salesforce.com has a Analysts' Rating of 2.10, and a 5-Year Projected Earnings Per Share Growth Rate of 25.84%. The short interest was 9.55% as of 06/26/2012. salesforce.com, inc. provides cloud computing and social enterprise solutions to various businesses and industries worldwide. The company delivers customer relationship management applications through Internet or cloud.
3) Amazon.com Inc. (NASDAQ:AMZN)
|Industry:||Catalog & Mail Order Houses|
Amazon.com Inc. has a Analysts' Rating of 2.00, and a 5-Year Projected Earnings Per Share Growth Rate of 30.94%. The short interest was 2.52% as of 06/26/2012. Amazon.com, Inc. operates as an online retailer in North America and internationally.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.