Steady profits are a good indicator that a company is doing well. A further sign that a company is in it's prime are great growth projections. Today we have a list of consumer stocks that are ripe for further investigation. These are the companies that provide goods that we see in our everyday life, and based upon the projections, we can expect to see a lot more of these goods in the near future. We think you'll find the list we came up with pretty interesting.
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
The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.
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 consumer stocks. We then looked for companies that have been able to retain strong profit margins on the bottom line (Net Margin [TTM]>10%) (1-year operating margin>15%). We then looked for businesses that have high future earnings per share growth forecasts (1-year projected EPS Growth Rate>25%). We did not screen out any market caps.
Do you think these stocks will offer healthy returns? Use our list along with your own analysis.
1) Omega Protein Corp. (OME)
|Industry:||Processed & Packaged Goods|
Omega Protein Corp. has a Net Margin of 13.74%, a Operating Profit Margin of 21.58%, and a 1-Year Projected Earnings Per Share Growth Rate of 26.32%. The short interest was 3.38% as of 07/31/2012. Omega Protein Corporation operates as a nutrition and wellness company that delivers healthy products to the animal, human, and plant nutrition industries. Its marine product lines are sourced from menhaden, an Omega-3 rich fish harvested along the Atlantic and Gulf coasts. The company markets a line of omega-3 fish oil, protein-rich specialty fishmeal, and organic fish solubles for aquaculture, companion animal, livestock, and equine feed manufacturers. It produces ultra-refined, molecularly distilled omega-3 ingredients for human food manufacturers; and markets branded fish solubles as agronomic plant food.
2) Le Gaga Holdings Ltd (GAGA)
Le Gaga Holdings Ltd has a Net Margin of 31.35%, a Operating Profit Margin of 31.99%, and a 1-Year Projected Earnings Per Share Growth Rate of 33.75%. The short interest was - as of 07/31/2012. Le Gaga Holdings Limited engages in cultivating, processing, and distributing vegetables, fruits, and tea leaves in the People's Republic of China and Hong Kong. The company is also involved in cultivating and selling fir trees. It offers solanaceous vegetables, including sweet peppers, tomatoes, eggplants, pumpkins, and cucumbers; leafy vegetables comprising flowering Chinese cabbage, baby bok choy, and baby Chinese cabbage; and cruciferous vegetables, such as broccoli and Chinese cabbage.
3) Lululemon Athletica Inc. (LULU)
|Industry:||Textile - Apparel Clothing|
Lululemon Athletica Inc. has a Net Margin of 18.04%, a Operating Profit Margin of 28.04%, and a 1-Year Projected Earnings Per Share Growth Rate of 27.16%. The short interest was 27.25% as of 07/31/2012. lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel for women, men, and female youth. The company's line of apparel and accessories include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles.
4) British American Tobacco plc (BTI)
British American Tobacco plc has a Net Margin of 22.42%, a Operating Profit Margin of 30.77%, and a 1-Year Projected Earnings Per Share Growth Rate of 35.48%. The short interest was 0.02% as of 07/31/2012.
5) ACCO Brands Corporation (ACCO)
ACCO Brands Corporation has a Net Margin of 31.31%, a Operating Profit Margin of 46.22%, and a 1-Year Projected Earnings Per Share Growth Rate of 25.50%. The short interest was - as of 07/31/2012. ACCO Brands Corporation engages in the design, manufacture, marketing, and distribution of office products primarily in the United States, Australia, the United Kingdom, and Canada. The company provides traditional office products and supplies, including staplers, staples, punches, ring binders, trimmers, sheet protectors, hanging file folders, clips and fasteners, dry-erase boards, dry-erase markers, easels, bulletin boards, overhead projectors, transparencies, and laser pointers and screens under the Quartet, Rexel, Swingline, Wilson Jones, Marbig, NOBO, ACCO, Derwent, and Eastlight brads. It also offers document finishing solutions comprising binding, lamination and punching equipment, binding and lamination supplies, report covers, archival report covers, and shredders, as well as machine maintenance and repair services under the GBC brand name.
*Company profiles were sourced from Finviz. Financial data was sourced from Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.