7 High Growth Mid Cap Stocks Holding Down The Debt

by: ZetaKap

When a company gets on a growth streak it can create excitement for internal and external stakeholders. During those growth spikes it is critical for management to keep a close eye on funding. If there is not enough cash on hand, companies may have to take on debt to keep the growth going. This can be problematic if the debt becomes untenable and earnings are not as high as predicted. On the flip side, when a company can keep the debt to a minimum and still foster growth it shows that management is keeping a close rein on finances and operations. With this in mind we ran a scan to find mid cap stocks that do not appear to be over leveraged while on track for significant growth in the next year. We think you find our list quite interesting.

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 Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios.

We first looked for mid cap stocks. We then looked for companies that have expected earnings per share growth of more than 25 percent for next year(1-year projected EPS Growth Rate>25%). We then looked for businesses that have maintained a sound long term capital structure (Long Term D/E Ratio<.1). We did not screen out any sectors.

Do you think these mid-cap stocks have strong enough fundamentals to move higher? Use our screened list as a starting point for your own analysis.

1) CEMEX, S.A.B. de C.V. (NYSE:CX)

Sector Industrial Goods
Industry Cement
Market Cap $8.36B
Beta 2.41

CX stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 77.80%
Long Term Debt/Equity Ratio 0.00
Short Interest 6.37%

CEMEX, S.A.B. de C.V., through its subsidiaries, engages in the production, marketing, distribution, and sale of cement, ready-mix concrete, aggregates, and other construction materials worldwide. It also offers asphalt, concrete blocks, roof tiles, concrete pipes, and architectural products, as well as other precast products, such as rail products, concrete floors, box culverts, bridges, drainage basins, barriers, and parking curbs. In addition, the company provides admixtures and gypsum materials; and cementitious materials, including fly ash and blast furnace slag. It serves home and commercial construction industries; improvement and renovation sector for infrastructure, agricultural, industrial, and other specialty applications. CEMEX, S.A.B. de C.V. was founded in 1906 and is based in Garza Garca, Mexico.

2) Aspen Technology, Inc. (NASDAQ:AZPN)

Sector Technology
Industry Business Software & Services
Market Cap $2.29B
Beta 1.14

AZPN stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 168.42%
Long Term Debt/Equity Ratio 0.00
Short Interest 4.17%

Aspen Technology, Inc., together with its subsidiaries, provides integrated process optimization software solutions for manufacturers in process industries, and engineering and construction firms. It designs and develops aspenONE suite software applications for use in the engineering, manufacturing, and supply chain business areas. The company's aspenONE engineering software includes Aspen Plus and Aspen HYSYS, which are process modeling software products for conceptual design, optimization, and performance monitoring; Aspen Basic Engineering, a workflow tool that allows engineers to build, re-use, and share process models and data; Aspen Economic Evaluation, an economic evaluation software for estimating costs of conceptual process designs; and Aspen Exchanger Design and Rating, a software used to design, simulate, and optimize the performance of heat exchangers. Its aspenONE manufacturing software comprises Aspen InfoPlus.21, a data historian software that collects and stores data for analysis and reporting; and Aspen DMCplus, a multi-variable controller software capable of processing multiple constraints. The company's aspenONE supply chain software products comprise Aspen Collaborative Demand Manager, Aspen Petroleum Scheduler, Aspen PIMS, Aspen Plant Scheduler, Aspen supply chain planner, Aspen Inventory Management & Operations Scheduling, Aspen Petroleum Supply Chain Planner, and Aspen Fleet Optimizer that are designed to enable process manufacturers to reduce inventory levels, increase asset efficiency, and optimize supply chain decisions. It also offers customer support, professional, and training services. The company serves manufacturers in process industries, such as energy, chemicals, pharmaceuticals, consumer packaged goods, power, metals and mining, pulp and paper, and bio-fuels, as well as engineering and construction firms. Aspen Technology, Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.

3) Groupon, Inc. (NASDAQ:GRPN)

Sector Technology
Industry Internet Information Providers
Market Cap $2.82B
Beta -

GRPN stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 123.53%
Long Term Debt/Equity Ratio 0.00
Short Interest 13.09%

Groupon, Inc., together with the subsidiaries, operates as a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount in North America and internationally. The company sends daily emails to its subscribers regarding discounted offers for goods and services that are targeted by location and personal preferences. Consumers also access its deals directly through the company's Websites and mobile applications. The company was founded in 2008 and is headquartered in Chicago, Illinois.

4) Forest Laboratories Inc. (NYSE:FRX)

Sector Healthcare
Industry Drug Manufacturers - Other
Market Cap $9.21B
Beta 0.64

FRX stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 126.47%
Long Term Debt/Equity Ratio 0.00
Short Interest 2.13%

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 (NYSEARCA: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. It also develops ceftaroline/avibactam combination, which is under Phase III clinical trials for complicated intra-abdominal infections, as well as has completed Phase II clinical trials for complicated urinary tract infections; and Cariprazine that is in Phase III clinical trials for the treatment of acute exacerbation of schizophrenia and acute mania associated with bipolar disorder. In addition, the company develops Levomilnacipran, which is under Phase III clinical trials for the treatment of MDD; GRT 6005 that is under Phase II clinical trials for nociceptive and neuropathic pain; TTP399, which is under Phase II clinical trials for the treatment of Type II diabetes; and RGH-618 that is under Phase I clinical trials for the treatment of anxiety, depression, and other central nervous system conditions. Forest Laboratories, Inc. sells its products directly to physicians, pharmacies, hospitals, managed care, and other healthcare organizations, as well as through independent distributors. The company was founded in 1956 and is headquartered in New York, New York.

5) Research In Motion Limited (RIMM)

Sector Technology
Industry Diversified Communication Services
Market Cap $3.62B
Beta 1.69

RIMM stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 58.60%
Long Term Debt/Equity Ratio 0.00
Short Interest 19.66%

Research In Motion Limited designs, manufactures, and markets wireless solutions for the mobile communications market worldwide. The company's products include BlackBerry smartphones and accessories, including bundles, cases, audio and memory products, Bluetooth, chargers, batteries and doors, and card readers; SureType, a keyboard technology, which allows users to compose messages using single-handed operation or two-handed thumb-typing; and SurePress, a touch screen that helps in navigation and typing. Its products provide access to time-sensitive information, including email, phone, short messaging service, and Internet and intranet-based applications. The company's products also enable third party developers and manufacturers to enhance their products and services with wireless connectivity to data. Research In Motion Limited markets and sells its products directly, as well as through strategic partners and distribution channels. It has a strategic alliance with Hewlett-Packard Company to deliver a portfolio of solutions for business mobility on the BlackBerry platform. The company was founded in 1984 and is headquartered in Waterloo, Canada with additional offices in North America, Europe, and the Asia Pacific.

6) Splunk, Inc. (NASDAQ:SPLK)

Sector Technology
Industry Application Software
Market Cap $3.00B
Beta -

SPLK stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 75.00%
Long Term Debt/Equity Ratio 0.00
Short Interest 17.77%

Splunk, Inc. provides software solutions that provide real-time operational intelligence. It offers Splunk, an engine that collects, indexes, and harnesses machine data generated by physical, virtual or in the cloud IT infrastructure; and Splunk Storm, a cloud version of Splunk to analyze cloud based applications. The company also provides services, such as implementation, system health optimization and best practices review, deployment workshop, upgrade, and augmentation for administration and development. In addition, its solutions include operational intelligence, application management, IT operations management, security and compliance, business analytics, cloud, and Microsoft. The company serves cloud and online services, education, energy and utilities, financial services and insurance, government, healthcare, manufacturing, media, retail, technology, telecommunications, and travel and leisure industries. Splunk, Inc. was founded in 2005 and is based in San Francisco, California.

7) STMicroelectronics NV (NYSE:STM)

Sector Technology
Industry Semiconductor - Broad Line
Market Cap $5.38B
Beta 1.81

STM stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 612.50%
Long Term Debt/Equity Ratio 0.05
Short Interest 0.30%

STMicroelectronics N.V., an independent semiconductor company, engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Its products include discretes, microcontrollers, Smartcard products, standard commodity components, micro-electro-mechanical systems and advanced analog products, application-specific integrated circuits, and application-specific standard products for analog, digital, and mixed-signal applications. The company also offers subsystems and modules for the telecommunications, automotive, and industrial markets comprising mobile phone accessories, battery chargers, ISDN power supplies, and in-vehicle equipment for electronic toll payment. Its products are used in various microelectronic applications consisting of automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation, and control systems. The company sells its products through distributors and retailers. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/29/2012.

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.