For investors who are interested in growth, but are uncomfortable with the risk involved at the small cap level, stocks in the more established mid cap range can provide some peace of mind. Especially when those stocks are projected for substantial growth over the next five years. Today we have a list of mid cap stocks in the basic materials sector with EPS growth rates of 25% or better. Additionally, industry analysts have given recent 'Buy' or 'Strong Buy' ratings to these stocks. We think you will find our list worthy of a second look.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for mid cap basic materials stocks. We then looked for companies that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We next screened for businesses that have expected earnings per share growth of more than 25 percent for the next five years (5-year projected EPS Growth Rate>25%).
Do you think these mid-cap stocks are undervalued? Use our list along with your own analysis.
1) Oasis Petroleum Inc. (NYSE:OAS)
|Industry||Independent Oil & Gas|
|5-Year Projected Earnings Per Share Growth Rate||26.67%|
Oasis Petroleum Inc., an independent exploration and production company, engages in the acquisition and development of oil and natural gas resources in the Montana and North Dakota regions of the Williston Basin. The company's primary project areas include West Williston, East Nesson, and Sanish.
2) Harmony Gold Mining Co. Ltd. (NYSE:HMY)
|5-Year Projected Earnings Per Share Growth Rate||35.20%|
Harmony Gold Mining Company Limited engages in the exploration, processing, and smelting of gold in South Africa and Papua New Guinea. The company has 10 underground operations; and various surface operations, including an open cast mine and 9 processing plants, which are located in goldfields in the Witwatersrand basin of South Africa, as well as the Kraaipan Greenstone Belt.
It also explores for silver, copper, and molybdenum through its Papua New Guinea projects. The company holds interests in the development and exploration projects at Hidden Valley and Wafi Golpu, as well as owns 100% interests in 3 projects, including Mount Hagen in the Western Highlands, Amanab in the Sandaun province, and Tari in the Southern Highlands province in Papua New Guinea. As of June 30, 2011, its prospecting interests comprised 69,942 hectares in South Africa and 1,198,400 hectares in Papua New Guinea.
3) CONSOL Energy Inc. (NYSE:CNX)
|Industry||Industrial Metals & Minerals|
|5-Year Projected Earnings Per Share Growth Rate||25.27%|
CONSOL Energy Inc. produces coal and natural gas for energy and raw material markets. The company is involved in the mining, preparation, and marketing steam coal primarily to electric power generation industry; and metallurgical coal to steel and coke producers. Its coal products comprise thermal, high volatile metallurgical, low volatile metallurgical, and other coal.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on August 21, 2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.