In the current market, many companies have had to focus on holding steady rather than growing the business. Staying afloat and not over utilizing debt to keep the doors open has become an acceptable place for many companies. But we wanted to find companies that are doing even better. With this in mind, we first scanned for mid cap companies that have kept their debt to a bare minimum. Doing so puts these companies at an advantage when growth opportunities arise. We ran a second scan to find companies that have EPS growth rates above 25% for the coming year. We think you will find the list of mid cap stocks we have summarized below worthy of a second look.
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.
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.
We first looked for mid cap stocks. We then screened for businesses that have maintained a sound long term capital structure (Long Term D/E Ratio<.1). We next screened for businesses that have high future earnings per share growth forecasts (1-year projected EPS Growth Rate>25%). We did not screen out any sectors.
Do you think these mid-cap stocks should be priced higher? Use our list, along with your own analysis.
1) Cree, Inc. (CREE)
|Industry||Semiconductor Equipment & Materials|
|Long Term Debt/Equity Ratio||0.00|
|1-Year Projected Earnings Per Share Growth Rate||37.90%|
Cree, Inc. develops and manufactures lighting-class light emitting diode (LED) products, lighting products, and semiconductor products for power and radio-frequency applications. Its LED products include blue and green LED chips that are used in various applications, including video screens, gaming displays, function indicator lights, and automotive backlighting; LED components comprising lighting class packaged LED products for lighting applications, and surface mount and through-hole packaged LED products for video, signage, general illumination, transportation, gaming, and specialty lighting applications; and silicon carbide (SiC) wafers, which are used in the manufacture of optoelectronics, RF, and power switching applications. The company also offers LED and traditional lighting systems for indoor and outdoor applications.
Its power and radio frequency products include SiC-based power products comprising Schottky diodes, as well as SiC metal semiconductor field-effect transistors that are used in power factor correction circuits for power supplies in computer servers, solar inverters, and other applications; and RF devices, including a range of GaN high electron mobility transistors and monolithic microwave integrated circuits (MMICs) for military or commercial applications. The company also provides semiconductor materials and devices primarily based on silicon carbide (SiC), gallium nitride (GaN), and related compounds; and foundry services for wide bandgap MMICs that allow customers to design their own custom RF circuits. The company primarily operates in China, the United States, Europe, South Korea, Japan, Malaysia, and Taiwan. Cree, Inc. was founded in 1987 and is headquartered in Durham, North Carolina.
2) Zynga, Inc. (ZNGA)
|Industry||Internet Information Providers|
|Long Term Debt/Equity Ratio||0.05|
|1-Year Projected Earnings Per Share Growth Rate||57.14%|
Zynga Inc. develops, markets, and operates online social games as live services on the Internet, social networking sites, and mobile platforms. The company offers its online social games under the CityVille, Zynga Poker, FarmVille, CastleVille, FrontierVille, Mafia Wars, Word with Friends, Hidden Chronicles, Zynga Bingo, Scramble With Friends, Slingo, and Dream Heights names. Its games are available on various platforms, including Facebook and other social networks, as well as mobile platforms, such as Apple iOS and Google Android worldwide. The company was formerly known as Zynga Game Network Inc. and changed its name to Zynga Inc. in November 2010. Zynga Inc. was founded in 2007 and is headquartered in San Francisco, California.
3) Pan American Silver Corp. (PAAS)
|Long Term Debt/Equity Ratio||0.02|
|1-Year Projected Earnings Per Share Growth Rate||27.34%|
Pan American Silver Corp. engages in the exploration, acquisition, development, and operation of silver properties. The company also focuses on copper, zinc, lead, and gold minerals. It has mining operations in Mexico, Peru, Argentina, and Bolivia; and has non-producing silver resources in the United States and Argentina. The company owns and operates the Quiruvilca mine, the Huaron mine, and the Morococha mine in Peru; La Colorada Mine and Alamo Dorado Mine in Mexico; Manantial Espejo Project in Argentina; and San Vicente in Bolivia. Pan American Silver Corp. was founded in 1979 and is headquartered in Vancouver, Canada.
4) The Madison Square Garden Company (MSG)
|Industry||Entertainment - Diversified|
|Long Term Debt/Equity Ratio||0.00|
|1-Year Projected Earnings Per Share Growth Rate||26.28%|
The Madison Square Garden Company, through its subsidiaries, operates in the sports, entertainment, and media businesses primarily in the United States. The company operates in three segments: MSG Media, MSG Entertainment, and MSG Sports. The MSG Media segment produces, develops, and acquires content for various distribution platforms, including content originating from the company's venues. It consists of the MSG Networks and regional sports networks; and Fuse, a national television network dedicated to music. This segment also manages interactive Web sites, social networking sites, and mobile applications; and mobile, video on demand, and digital platforms. The MSG Entertainment segment presents or hosts live entertainment events, such as concerts, family shows, performing arts, and special events, and theatrical productions, as well as creates, produces, and/or presents live productions.
This segment owns the Garden, Radio City Music Hall, the Theater at Madison Square Garden, the Beacon Theatre, the Chicago Theatre, and the Forum. The MSG Sports segment owns and operates sports franchises, including the New York Knicks, New York Rangers, New York Liberty, and Connecticut Whale. This segment also promotes, produces, and/or presents an array of live sporting events, such as professional boxing, college basketball, track and field, professional bull riding, tennis, and wrestling, as well as the NFL draft. The company was founded in 1874 and is based in New York, New York. As of February 09, 2010, Madison Square Garden, Inc. operates independently of Cablevision Systems Corporation.
5) Under Armour, Inc. (UA)
|Industry||Textile - Apparel Clothing|
|Long Term Debt/Equity Ratio||0.05|
|1-Year Projected Earnings Per Share Growth Rate||29.41%|
Under Armour, Inc. engages in the design, development, marketing, and distribution of apparel, footwear, and accessories for men, women, and youth worldwide. The company offers its apparel in three fit types: compression, fitted, and loose that are designed to be worn in hot, cold, and changing temperatures. Its footwear products include football, baseball, lacrosse, softball and soccer cleats, as well as slides, performance training footwear, running footwear, basketball footwear, and hunting boots for athletes. The company's accessories comprise baseball batting, football, golf, and running gloves; and licensees offer socks, team uniforms, baby and kids' apparel, eyewear, and custom-molded mouth guards, as well as hats and bags. Under Armour, Inc. sells its products primarily under the UA and UNDER ARMOUR brands through wholesale channels, which include independent and specialty retailers, institutional athletic departments, leagues and teams, national and regional sporting goods chains, and department store chains; independent distributors; and directly to consumers through its own specialty and factory house stores and website. The company was founded in 1996 and is headquartered in Baltimore, Maryland.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/13/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.