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. This is especially true in the cut-throat world of finance. Today, we focus on large cap financial companies that have grown consistently due to smart management, steady profitability, and a deep understanding of their core value propositions. We screened for companies that are expected to continue their growth into the foreseeable future, and that have been given votes of confidence from industry analysts. 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) 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 large cap financial stocks. We then screened for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We next screened for businesses that are considered high-growth, with 1-year projected EPS growth above 25%.
Do you think these large-cap stocks are worth more than the market currently says they are? Use our screened list as a starting point for your own analysis.
1) Mizuho Financial Group, Inc. (MFG)
|Industry:||Money Center Banks|
Mizuho Financial Group, Inc. has a Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 34.48%. The short interest was 0.01% as of 07/06/2012. Mizuho Financial Group, Inc., through its subsidiaries, provides various banking and financial services in Japan and internationally. The company offers retail banking services, including housing and personal loans, credit cards, deposits, investment products, and consulting services; and corporate banking services comprising loans, syndicated loan arrangements, structured finance, advisory services, other banking services, and capital markets financing services to small and medium-sized enterprises (SME), middle-market corporations, local governmental entities, and other public sector entities. It also provides derivatives and other risk hedging products; and securities services to individuals and corporate customers, as well as involves in proprietary trading, such as foreign exchange and bond trading, and asset and liability management.
2) The Royal Bank of Scotland Group plc (RBS)
|Industry:||Foreign Money Center Banks|
The Royal Bank of Scotland Group plc has a Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 113.90%. The short interest was 0.21% as of 07/06/2012. The Royal Bank of Scotland Group plc is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The Company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing.
3) SunTrust Banks, Inc. (STI)
|Industry:||Money Center Banks|
SunTrust Banks, Inc. has a Analysts' Rating of 2.40, and a 1-Year Projected Earnings Per Share Growth Rate of 38.74%. The short interest was 2.04% as of 07/06/2012. SunTrust Banks, Inc. operates as the holding company for SunTrust Bank, which provides various financial services in the United States. The company's Retail Banking segment offers consumer deposits, home equity lines, consumer lines, indirect auto, student lending, bank card, and other consumer loan and fee-based products. Its Diversified Commercial Banking segment provides commercial lending, financial risk management, capital raising, commercial card, and other treasury and payment solutions; insurance premium financing; and equipment and lease financing.
4) The Blackstone Group (BX)
The Blackstone Group has a Analysts' Rating of 1.90, and a 1-Year Projected Earnings Per Share Growth Rate of 30.77%. The short interest was 0.85% as of 07/06/2012. The Blackstone Group L.P., together with its subsidiaries, provides alternative asset management and financial advisory services worldwide.
*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.