Bargain Hunting: Stocks With Strong Earnings Growth

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 |  Includes: AKAM, CAM, CELG, CTSH, GOOG, GT, ICE, ISRG, MEE, MON, MTW, MUR, NOV, PCP, RIG, SII, SUNEQ, SWN
by: Vlada Kynsky

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%
Click to enlarge