When a company has an impressive growth projection for the next five years, it can send a message that management has an eye on the big picture and has set manageable and realistic goals to grow the business. With this in mind, we looked for consumer stocks with EPS growth projections of 25% or better for the next five years. This time frame typically allows a company to grow in step with the increase in demand. In addition, all of the companies in our list have received a recent 'Buy' rating from industry analysts. We think you will find our list of consumer stocks worthy of further research.
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 consumer stocks. We then looked for companies with projected high growth, measured by 5-year projected EPS growth above 25%. We next screened for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). We did not screen out any market caps.
Do you think these stocks can offer attractive returns? Use our screened list as a starting point for your own analysis.
1) Accuride Corp. (ACW)
|Industry||Trucks & Other Vehicles|
|5-Year Projected Earnings Per Share Growth Rate||36.00%|
Accuride Corporation, together with its subsidiaries, engages in designing, manufacturing, marketing, and supplying commercial vehicle components in North America. The company offers heavy- and medium-duty steel and aluminum wheels, light truck steel wheels, and military wheels; and wheel-end components and assemblies, such as brake drums, disc wheel hubs, spoke wheels, disc brake rotors, and automatic slack adjusters. It also provides truck body and chassis parts comprising bumpers, fuel tanks, battery boxes and toolboxes, front-end cross members, muffler assemblies, and crown assemblies and components, as well as fenders, exhaust components, sun visors, windshield masks, step assemblies, brackets, fuel tank supports, inner-hood panels, door assemblies, dash panel assemblies, and various other components. In addition, the company offers ductile and gray iron casting of transmission and engine-related components, which comprise flywheels, and transmission and engine-related housings and brackets; and ductile and gray iron casting of industrial components, such as flywheels, pump housings, small engine components, and other industrial components. Accuride Corporation markets its products under Accuride, Gunite, Imperial, and Brillion brand names. It serves heavy- and medium-duty truck, and commercial trailer original equipment manufacturers (OEM); and aftermarket suppliers, including OEM dealer networks, wholesale distributors, and aftermarket buying groups. The company was founded in 1986 and is headquartered in Evansville, Indiana.
2) SodaStream International Ltd. (SODA)
|Industry||Beverages - Soft Drinks|
|5-Year Projected Earnings Per Share Growth Rate||30.00%|
SodaStream International Ltd. engages in the development, manufacture, and marketing of home beverage carbonation systems that enable consumers to transform ordinary tap water instantly into carbonated soft drinks and sparkling water. It offers soda makers; exchangeable carbon-dioxide (CO2) cylinders; beverage-grade CO2 refills; reusable carbonation bottles consisting of high pressure-resistant plastic or glass bottles; and approximately 100 flavors comprising fruit, carbonated soft drink, and enhanced flavors to add to the carbonated water. The company also sells additional accessories manufactured by third parties, including bottle cleaning materials and ice cube trays shaped to produce ice cubes. In addition, it distributes Brita water filtration systems and other consumer products in Israel. The company sells its products under the SodaStream and Soda-Club brand names directly and through local distributors to retailers, as well as over the Internet. It sells its products through approximately 50,000 retail stores in 42 countries in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. The company was formerly known as Soda-Club Holdings Ltd. and changed its name to SodaStream International Ltd. in March 2010. SodaStream International Ltd. is headquartered in Airport City, Israel.
3) SunOpta Inc. (STKL)
|Industry||Processed & Packaged Goods|
|5-Year Projected Earnings Per Share Growth Rate||30.00%|
SunOpta Inc. manufactures and markets natural and organic food products and environmental mineral products. The company's SunOpta Food Group segment comprises five groups: SunOpta Grains and Foods, SunOpta Ingredients, SunOpta Fruit, SunOpta International Sourcing and Trading, and SunOpta Distribution. SunOpta Grains and Foods group markets organic, identity preserved, non-GMO grains, ingredients, and packaged goods. SunOpta Ingredients group transforms sourced raw materials into value-added food ingredient solutions with a focus on insoluble oat and soy fiber products. SunOpta Fruit group provides natural and organic fruit and vegetable based products to the private label retail, quick-service restaurant, food service, and industrial markets. SunOpta International Sourcing and Trading group sources raw material ingredients, as well as supplies a range of organic commodities to the food industry in the European Union, North American, and Asian markets. SunOpta Distribution group operates a national natural, organic and specialty foods, and health and natural health products distribution network in Canada. SunOpta's Opta Minerals segment processes, sells, and distributes silica-free loose abrasives, roofing granules, and industrial minerals specialty sands, as well as recycles inorganic materials for the foundry, steel, roofing shingles, and bridge- and ship-cleaning industries. The company's SunOpta BioProcess segment provides research and development and engineering services; and owns various patents on its proprietary steam explosion technology. It designs and subcontracts the manufacture of these systems, which are used for processing biomass for use in the paper, food, and biofuel industries. The company operates in the United States, Canada, and Europe. SunOpta Inc. was formerly known as Stake Technology Ltd. and changed its name to SunOpta Inc. in October 2003. SunOpta was founded in 1973 and is headquartered in Brampton, Canada.
4) Meritor, Inc. (MTOR)
|5-Year Projected Earnings Per Share Growth Rate||37.10%|
Meritor, Inc. designs, develops, manufactures, sells, markets, distributes, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. The company operates in three segments: Commercial Truck, Industrial, and Aftermarket and Trailer. The Commercial Truck segment supplies drivetrain systems and components, including axles, drivelines, and braking and suspension systems, primarily for medium- and heavy-duty trucks. The Industrial segment supplies drivetrain systems consisting of axles, brakes, drivelines, and suspensions for off-highway, military, construction, bus and coach, fire, and emergency, and other industrial applications. The Aftermarket and Trailer segment supplies axles, brakes, drivelines, suspension parts, and other replacement and remanufactured parts comprising transmissions to commercial vehicle aftermarket customers. This segment also provides a range of undercarriage products and systems for trailer applications. Meritor, Inc. sells its products under the Meritor, Meritor Wabco, Euclid, Trucktechnic, and Mascot Truck Parts brand names to OEMs and its parts marketing operations and dealers; other independent distributors; and service garages in North and South America, Europe, and the Asia Pacific. The company was formerly known as ArvinMeritor, Inc. and changed its name to Meritor, Inc. in March 2011. Meritor, Inc. was founded in 1921 and is headquartered in Troy, Michigan.
5) American Apparel, Inc. (APP)
|Industry||Textile - Apparel Clothing|
|5-Year Projected Earnings Per Share Growth Rate||41.00%|
American Apparel, Inc. engages in the manufacture, distribution, and retail of branded fashion basic apparel for women, men, children, and babies. The company primarily offers T-shirts, denim, sweaters, jackets, and accessories. As of June 30, 2012, it operated 253 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. The company also supplies T-shirts and other casual wear to distributors and screen printers. In addition, it sells its products through operating an online retail e-commerce Website at store.americanapparel.net. The company was founded in 1998 and is headquartered in Los Angeles, California.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/29/2012.
Disclaimer: 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.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.