Seeking Alpha
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Last time I was screening top yielding stocks among S&P500 components and this time I run my fundamental stock screen for growth stocks. I set as a criteria "Estimated earnings growth for next 5 years" to be at least 25% per year. There are 18 companies with such a projected growth. For better picture I've also added P/E ratio and share price return on yearly and quarterly basis.

Investing strategy based on strong projected EPS growth shows following results. S&P 500 index is yearly down by -18% and average return for selected stocks is up by 20%. On quarterly basis S&P 500 down by -9% and again beaten by growth stock with average return -2%.

 

Ticker Company Name Forw. EPS gr. Yearly Quarterly


PE Next 5y

(MEE) MASSEY ENERGY CO 13 50 181% 52%
(NOV) NATL OILWELL VARC 14 45 50% 25%
(CELG) CELGENE CP 29 42 17% 8%
(MTW) MANITOWOC CO INC 7 41 -36% -39%
(MON) MONSANTO COMPANY 27 36 79% -1%
(ISRG) INTUITIVE SURG IN 35 36 71% -28%
(GT) GOODYEAR TIRE RUB 5 35 -52% -35%
(CAM) CAMERON INTL CP 16 32 41% 13%
(MUR) MURPHY OIL CP HLD 9 31 52% 8%
(RIG) TRANSOCEAN INC 8 28 26% -2%
(WFR) MEMC ELECTRONIC M 10 28 -11% -25%
(CTSH) COGNIZANT TECH SO 16 28 -22% 6%
(GOOG) GOOGLE 21 28 -1% 12%
(ICE) INTERCNTNTLEXCHAN 16 26 -34% -31%
(TIE) TITANIUM METALS C 8 26 -65% -36%
(SWN) SOUTHWESTERN ENER 26 25 88% 15%
(AKAM) AKAMAI TECH INC 16 25 -33% 2%
(SII) SMITH INTL INC 17 25 32% 14%
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This article has 10 comments:

  •  
    Do you have a Opinion or a View ?
    2008 Jul 07 05:18 PM | Link | Reply
  •  
    My point is that the investing strategy betting on high growing stocks is successful.
    2008 Jul 08 03:17 AM | Link | Reply
  •  
    If you're going to look at, for example, the gain of these stocks over the last year, then you need to know what the 5-year-growth estimates were for them a year ago, not what it is today. They may have gone up in the past year because the estimates have gone up (Massey Energy comes to mind), in which case it's not surprising that those with high estimates also have high growth in the past year.
    2008 Jul 08 11:39 AM | Link | Reply
  •  
    delete those oil related companies and put ITWO in.
    2008 Jul 08 11:41 AM | Link | Reply
  •  
    Concentrate on big cap multinational consumer goods companies
    2008 Jul 09 09:26 AM | Link | Reply
  •  
    TIE has been decimated. She will rise again. Boone Pickens owns this name
    2008 Jul 10 07:40 PM | Link | Reply
  •  
    Ames, what do you know about TIE. Why do you like it? Boon Pickens ones less than 1% of the stock.

    2008 Jul 12 02:49 PM | Link | Reply
  •  
    Titanium Metals Corporation produces titanium melted and mill products. It offers titanium sponge, which is the basic form of titanium metal used in titanium products; and melted products, such as ingot, electrodes, and slab that are the result of melting sponge and titanium scrap. The company also provides mill products that are forged and rolled from ingot or slab products, including billets, bars, plates, sheets and strips, and pipes; and fabrications, which comprise spools, pipe fittings, manifolds, and vessels that are cut, formed, welded, and assembled from titanium mill products. Titanium Metals Corporation sells its products directly in the United States and Europe, as well as through independent agents and distributors worldwide. It serves commercial aerospace and military, chemical process, oil and gas, consumer, sporting goods, automotive, and power generation sectors. The company was founded in 1950 and is headquartered in Dallas, Texas
    2008 Jul 18 09:09 PM | Link | Reply
  •  
    I like Oil Producers, especially the above mentioned SWN. I did some research on them and though they went down a lot in July, SWN is close to a bottom and represents a buying opportunty. Here's a pretty good analysis of nat gas producers: www.greenfaucet.com/tr....
    The other recommends SWN, RRC, NFX, and HK so that opens up a few more opportunities for people looking to follow that route.
    2008 Aug 01 03:22 PM | Link | Reply
  •  
    GT looks like an inexpensive proposition if one has more than 5 minutes. This is only the 3rd time since 1991 that the stock has been this cheap. 80% of their tire sales are to the after market. They are the third largest maker of tires in the world. Their cash is equal to their debt.
    2008 Nov 24 09:11 PM | Link | Reply
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