Stocks in the mid-cap range allow investors to add growth opportunities to portfolios, while minimizing the risk that tends to accompany small-cap investments. With this in mind, we specifically searched for mid-cap stocks that have impressive growth projections in the next year. These companies also have strong profit margins, which means that they have solid management and operations in place, and are suitably equipped to reach their predicted growth. Take a look and see if any spark your curiosity.
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.
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.
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 mid cap stocks. We then screened for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. We then looked for companies with strong profit margins (1-year operating margin>15%)(Net Margin [TTM]>10%). We did not screen out any sectors.
Do you think these mid-cap stocks have more value to price in? Use our list along with your own analysis.
1) Elan Corporation, plc (NYSE:ELN)
Elan Corporation, plc has a 1-Year Projected Earnings Per Share Growth Rate of 181.80%, an Operating Profit Margin of 58.94%, and a Net Margin of 40.74%. The short interest was 1.90% as of August 10, 2012. Elan Corporation, plc operates as a neuroscience-based biotechnology company in the United States, Ireland, and internationally. It engages in research, development, and commercial activities primarily in the areas of Alzheimer's disease, Parkinson's disease, and multiple sclerosis (MS). The company offers Tysabri, an alpha-4 integrin inhibitor primarily for the treatment of MS.
2) Allied Nevada Gold Corp. (NYSEMKT:ANV)
Allied Nevada Gold Corp. has a 1-Year Projected Earnings Per Share Growth Rate of 88.98%, an Operating Profit Margin of 35.98%, and a Net Margin of 30.50%. The short interest was 8.48% as of August 10, 2012. Allied Nevada Gold Corp., together with its subsidiaries, engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects.
It principally operates the Hycroft Mine, an open pit heap leach gold and silver mine covering approximately 61,389 acres of mineral rights located in the west of Winnemucca, Nevada. The company is also involved in the exploration and development of various exploration properties, including Hasbrouck, Mountain View, Three Hills, Wildcat, Maverick Springs, and Pony Creek/Elliot Dome projects.
3) Forest Laboratories Inc. (NYSE:FRX)
|Industry:||Drug Manufacturers - Other|
Forest Laboratories Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 126.09%, an Operating Profit Margin of 22.74%, and a Net Margin of 18.24%. The short interest was 6.78% as of August 10, 2012. Forest Laboratories, Inc. develops, manufactures, and sells branded forms of ethical drug products primarily in the United States and Europe.
It principally offers Namenda for the treatment of moderate and severe Alzheimer's disease; Bystolic for the treatment of hypertension; Savella for the management of fibromyalgia; Teflaro for the treatment of adults with skin and skin structure infections, and community-acquired bacterial pneumonia; Daliresp to reduce the risk of chronic obstructive pulmonary disease (COPD) exacerbations in patients with severe COPD; and Viibryd for the treatment of adults with major depressive disorder (MDD). The company has products under new drug application review by Food and Drug Administration comprising Aclidinium for the maintenance treatment of COPD; and Linaclotide for the treatment of constipation-predominant irritable bowel syndrome and chronic constipation.
4) Cabot Oil & Gas Corporation (NYSE:COG)
|Industry:||Independent Oil & Gas|
Cabot Oil & Gas Corporation has a 1-Year Projected Earnings Per Share Growth Rate of 88.89%, an Operating Profit Margin of 27.02%, and a Net Margin of 10.22%. The short interest was 4.61% as of August 10, 2012. Cabot Oil & Gas Corporation, an independent oil and gas company, engages in the development, exploitation, exploration, production, and marketing of natural gas, crude oil and, and natural gas liquids in the United States. The company's properties primarily located in Appalachia, east and south Texas, and Oklahoma. It also transports, stores, gathers, and produces natural gas for resale.
5) American Campus Communities Inc. (NYSE:ACC)
|Industry:||REIT - Residential|
American Campus Communities Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 92.19%, an Operating Profit Margin of 25.54%, and a Net Margin of 12.13%. The short interest was 1.30% as of August 10, 2012. American Campus Communities, Inc. is an independent equity real estate investment trust. The firm invests in the real estate markets of the United States. It primarily engages in developing, owning, and managing high-quality student housing communities.
6) SandRidge Energy, Inc. (NYSE:SD)
|Industry:||Oil & Gas Drilling & Exploration|
SandRidge Energy, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 84.62%, an Operating Profit Margin of 32.56%, and a Net Margin of 16.75%. The short interest was 15.11% as of August 10, 2012. SandRidge Energy, Inc., together with its subsidiaries, operates as an independent natural gas and oil company in the United States. The company engages in the exploration, development, and production of oil and gas properties. Its Exploration and Production segment explores for, develops, and produces natural gas and oil reserves with focus on the Mid-Continent and Permian Basin.
*Company profiles were sourced from Google Finance and Yahoo Finance. 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.