At the large cap level, it isn't always easy to find stocks with substantial growth on the horizon. On the surface, these companies appear to have surpassed their days of rapid growth. However, by focusing on companies with significant growth projections and analyzing debt ratios, it is possible to find large cap stocks that are well positioned for expansion. When a company is relatively debt free, it has more freedom to pursue tactics that enhance growth. We put these ideas together and developed an intriguing list of large cap stocks for your consideration.
The debt/equity ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The one-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 stocks. We then looked for businesses that have maintained a sound capital structure (D/E Ratio<.1). From here, we then looked for companies that are considered high-growth, with one-year projected EPS growth above 25%. We did not screen out any sectors.
Do you think these large-cap stocks have a positive future in store? Please use our list to assist with your own analysis.
1) Amazon.com Inc. (AMZN)
|Industry||Catalog & Mail Order Houses|
|1-Year Projected Earnings Per Share Growth Rate||209.09%|
Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates retail Websites, such as amazon.com and amazon.ca. The company serves consumers through its retail Websites and focuses on selection, price, and convenience. It also offers programs that enable sellers to sell their products on company's Websites, and their own branded Websites. In addition, the company serves developers and enterprises through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually various type of business. Further, it manufactures and sells the Kindle e-reader. Additionally, the company provides fulfillment services; miscellaneous marketing and promotional agreements, such as online advertising; and co-branded credit cards. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.
2) Goldcorp Inc. (GG)
|1-Year Projected Earnings Per Share Growth Rate||43.01%|
Goldcorp Inc. engages in the acquisition, development, exploration, and operation of precious metal properties. It primarily explores gold, silver, copper, lead, and zinc. The company's principal mining properties include Red Lake, Porcupine, and Musselwhite gold mines in Canada; Peasquito gold/silver/lead/zinc mine, and Los Filos and El Sauzal gold mines in Mexico; Marlin gold/silver mine in Guatemala; Alumbrera gold/copper mine in Argentina; and Marigold and Wharf gold mines in the United States. Goldcorp Inc. was founded in 1954 and is headquartered in Vancouver, Canada.
3) China Life Insurance Co. Ltd. (LFC)
|1-Year Projected Earnings Per Share Growth Rate||44.75%|
China Life Insurance Company Limited, together with its subsidiaries, engages in writing life insurance business in China. The company provides life, annuities, accident, and health insurance products to individuals, enterprises, and institutions. Its individual life insurance and annuity products consist of whole life and term life insurance, endowment insurance, and annuities, as well as universal life products; group life insurance and annuity products comprise group annuity products and group whole life and term life insurance products; and short-term insurance products include short-term accident and health insurance products, such as defined health benefit plans, medical expense reimbursement plans, disease-specific plans.
The company's accident insurance products comprise individual accident insurance products, such as insurance for students and infants against death and disability resulting from accidental injury and comprehensive coverage against accidental injury, and accidental death and disability insurance; and group accident insurance products, including construction worker related accident insurance and law enforcement personnel accident insurance. China Life Insurance Company Limited distributes its products through its direct sales representatives and exclusive agents, as well as through intermediaries comprising insurance agencies and insurance brokerage companies, non-dedicated agencies, bancassurance arrangements, travel agencies, and hotels and airline sales counters. The company was founded in 1949 and is based in Beijing, China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/24/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.