Mid-cap stocks provide a unique investment opportunity. Mid caps still have room to grow to join the ranks of their larger cap peers, but can also carry less risk exposure than smaller cap alternatives. Today, we screened for mid caps showing strong growth trends, and that also look undervalued from a price-multiple standpoint. We came up with a list of mid caps that spans all the major sectors - tell us what you think in the comments.
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 stocks. Next, we then screened for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). From here, we then looked for companies that have high future earnings per share growth forecasts(1-year projected EPS Growth Rate>25%). We did not screen out any sectors.
Do you think these mid-cap stocks should be priced higher? Use our list along with your own analysis.
1) DR Horton Inc. (NYSE:DHI)
DR Horton Inc. has a Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 33.82%. The short interest was 14.07% as of 06/28/2012. D.R. Horton, Inc. operates as a homebuilding company in the United States.
2) Groupon, Inc. (NASDAQ:GRPN)
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Groupon, Inc. has a Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 283.33%. The short interest was 6.72% as of 06/28/2012. Groupon, Inc., together with the subsidiaries, operates as a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount in North America and internationally. The company sends daily emails to its subscribers regarding discounted offers for goods and services that are targeted by location and personal preferences. Consumers also access its deals directly through the company's Websites and mobile applications.
3) Arcos Dorados Holdings Inc. Cla (NYSE:ARCO)
Arcos Dorados Holdings Inc. Cla has a Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 28.79%. The short interest was 14.21% as of 06/28/2012. Arcos Dorados Holdings Inc. operates and franchises McDonald's restaurants. The company has operations in 19 territories, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guyana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Uruguay, the U.S.
4) Human Genome Sciences Inc. (HGSI)
Human Genome Sciences Inc. has a Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 37.70%. The short interest was 9.93% as of 06/28/2012. Human Genome Sciences, Inc. operates as a biopharmaceutical company in the United States. Its principal products include BENLYSTA for systemic lupus erythematosus; and raxibacumab for inhalation anthrax. The company's mid- and early-stage pipeline products comprise Mapatumumab, a human monoclonal antibody for the treatment of advanced hepatocellular cancer; HGS1036, a biologic for multiple cancers; HGS1029, an IAP inhibitor that is in Phase 1 development to treat patients with solid and lymphoid tumors; and HGS1025, a human monoclonal antibody to the CCR5 receptor that would have entered Phase 1b development in ulcerative colitis.
5) Allison Transmission Holdings, Inc. (NYSE:ALSN)
Allison Transmission Holdings, Inc. has a Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 30.60%. The short interest was 12.81% as of 06/28/2012. Allison Transmission Holdings, Inc., together with its subsidiaries, engages in the design and manufacture of commercial and military fully-automatic transmissions and hybrid-propulsion systems for transit buses. The company's fully-automatic transmissions are used in on-highway trucks, buses, motor homes, off-highway vehicles and equipment, and military vehicles. It also sells branded replacement parts, support equipment, and other products necessary to service the installed base of vehicles utilizing its transmissions.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.