The stocks covered in this article are mid cap stocks with high earnings and revenue growth. On average, these three companies have market caps of 2.2 billion; earnings and revenue growth rates of 98.2% and 118.53% respectively.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole. The one used for this analysis is the EPS growth of the projected current year vs. last year.
Revenue growth measures of how much more (or less) the company has sold during a specified time period compared with another period. The one used for this analysis is the trailing 12 months vs. the prior 12 months revenues. When looking at a company's financials, it is not enough to just look at the revenue for the current period. An investor wants to see how the company grows or improves over time and will give a much better idea of how well a company is doing.
Companies with high earnings and revenue growth rates tend to make good investments as they tend to perform better than the overall market.
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1. Altisource Portfolio Solutions (ASPS)
Real Estate Management and Development
Altisource has a P/E of 23.72, EPS Growth Rate of 66.61%, and a Revenue Growth Rate of 49.58%. Altisource Portfolio Solutions S.A., together with its subsidiaries, provides services related to real estate and mortgage portfolio management, asset recovery, and customer relationship management primarily in the United States. It was incorporated in 1999 and is based in Luxembourg. Technically, the stock has had a huge run since the beginning of June-almost parabolic. I would be a bit cautious here on the entry and wait for a pullback.
2. Air Lease Corp (AL)
Trading Companies and Distributors
Air Lease has a P/E of 21.97, EPS Growth Rate of 102%, and a Revenue Growth Rate of 166%. Air Lease Corporation engages in the purchase and leasing of commercial aircraft to airlines worldwide. The company also provides fleet management and remarketing services, including leasing, re-leasing, lease management, and sales services to investors and/or owners of aircraft portfolios. As of December 31, 2011, it had a fleet of 102 aircraft comprising 81 single-aisle jet aircraft, 19 twin-aisle widebody aircraft, and 2 turboprop aircraft. The company was founded in 2010 and is based in Los Angeles, California. Technically, it recently broke above the 20 SMA and I like the entry at this time.
3. QuestCor Pharmaceutical Inc (QCOR)
Questcor has a P/E of 19.28, EPS Growth Rate of 126%, and a Revenue Growth Rate of 140%. Questcor Pharmaceuticals, Inc., a biopharmaceutical company, provides prescription drugs for the treatment of multiple sclerosis, nephrotic syndrome, and infantile spasms indications. It primarily offers H.P. Acthar Gel, an injectable drug for the treatment of acute exacerbations of multiple sclerosis in adults; to induce a diuresis or a remission of proteinuria in the nephrotic syndrome without uremia of the idiopathic type or that due to lupus erythematosus; and as monotherapy for the treatment of infantile spasms in infants and children under two years of age. Questcor Pharmaceuticals, Inc. was founded in 1990 and is headquartered in Anaheim, California. Technically, I would like to see further upside price momentum before entering this trade.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AL over the next 72 hours.