Typically, investing in mid cap stocks appeals to those who want to up the protection while still capitalizing on growth opportunities. It can be viewed as a more practical, and at times longer term approach. However, when investors align themselves with mid cap stocks that have significant EPS growth projections for the next year, they may accelerate the process for achieving solid returns. From this perspective, we pulled together a list of mid cap stocks that have projected EPS growth rates above 25%. To provide further credibility, these companies all are pulling in strong profits. We think you will enjoy reviewing the data below to see if these mid-cap stocks meet your standards.
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.
Return on Assets (ROA) illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the company's assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.
We first looked for mid cap stocks. We then screened for businesses that are considered high-growth, with 1-year projected EPS growth above 25%. We then looked for companies with strong profitability (ROA > 10%)(1-year fiscal EPS growth rate>10%). We did not screen out any sectors.
Do you think these mid cap stocks deserve to trade higher? Use our list along with your own analysis.
1) Harman International Industries, Inc. (HAR)
|1-Year Projected Earnings Per Share Growth Rate||25.79%|
|Return on Assets||10.58%|
|Earnings Per Share Growth Rate||140.95%|
Harman International Industries, Incorporated designs, develops, manufactures, and markets audio products and electronic systems worldwide. Its Infotainment segment offers infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers. The company's Lifestyle segment provides automotive audio systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers; and a range of mid-to high-end loudspeaker and electronics for home, multimedia, and mobile applications. This segment offers home audio and theater systems, and distributed systems for home applications; a range of accessories, such as earbuds and noise cancelling headphones for multimedia applications; transducers and built-in speakers for notebook computers; audio systems for personal computers; and aftermarket mobile products, including speakers, amplifiers, and digital signal processors that deliver in-car audio.
This segment markets its products under the JBL, AKG, Harman/Kardon, Infinity, Mark Levinson, Revel, Logic 7, Lexicon, and Selenium brand names. Its Professional segment offers a range of loudspeakers, power amplifiers, digital signal processors, microphones, headphones, mixing consoles, and IDX information delivery systems used by audio professionals in concert halls, stadiums, airports, houses of worship, and other public spaces. This segment also provides products to the sound reinforcement, music instrument support, and broadcast and recording segments of the professional audio market; and systems solutions for professional installations and users. This segment markets its products under the JBL Professional, AKG, Crown, Soundcraft, Lexicon, DigiTech, dbx, BSS, Studer, and Selenium brand names. Harman International Industries, Incorporated was founded in 1980 and is headquartered in Stamford, Connecticut.
2) Rosetta Resources, Inc. (ROSE)
|Industry||Independent Oil & Gas|
|1-Year Projected Earnings Per Share Growth Rate||45.35%|
|Return on Assets||15.09%|
|Earnings Per Share Growth Rate||423.42%|
Rosetta Resources Inc., an independent exploration and production company, engages in the acquisition, exploration, development, and production of onshore oil and gas resources in the United States. It owns producing and non-producing oil and gas properties located primarily in South Texas, including the Eagle Ford, and in the Southern Alberta Basin in Northwest Montana. As of December 31, 2011, the company had an estimated 965 billion cubic feet equivalent of proved reserves, including 36,370 million barrels of oil, 50,219 million barrels of natural gas liquids, and 446 billion cubic feet of natural gas, as well as drilled 53 net wells. Rosetta Resources Inc. was incorporated in 2005 and is headquartered in Houston, Texas.
3) Energy XXI (Bermuda) Limited (EXXI)
|Industry||Oil & Gas Equipment & Services|
|1-Year Projected Earnings Per Share Growth Rate||37.34%|
|Return on Assets||11.33%|
|Earnings Per Share Growth Rate||771.17%|
Energy XXI (Bermuda) Limited, together with its subsidiaries, engages in the acquisition, exploration, development, production, and operation of oil and natural gas properties onshore in Louisiana and Texas, and offshore in the Gulf of Mexico. As of June 30, 2012, the company's estimated net proved reserves were 119.6 million BOE. It operated or had an interest in 450 gross producing wells on 239,502 net developed acres, including interests in 41 producing fields. The company was founded in 2005 and is based in Hamilton, Bermuda.
4) Cliffs Natural Resources Inc. (CLF)
|Industry||Steel & Iron|
|1-Year Projected Earnings Per Share Growth Rate||31.48%|
|Return on Assets||11.33%|
|Earnings Per Share Growth Rate||54.55%|
Cliffs Natural Resources Inc., a mining and natural resources company, engages in the production of iron ore pellets, fines and lump ore, and metallurgical coal. It operates five iron ore mines located in Michigan and Minnesota; five metallurgical coal mines located in West Virginia and Alabama; and one thermal coal mine located in West Virginia. The company also operates two iron ore mines in eastern Canada that primarily provide iron ore to steel producers in Asia; and two iron ore mining complexes in Western Australia. In addition, it holds a 45% economic interest in a coking and thermal coal mine located in Queensland, Australia; 30% interest in Amap, an iron ore project in Brazil; and interest in a chromite project in Ontario, Canada. The company, formerly known as Cleveland-Cliffs Inc, was founded in 1847 and is headquartered in Cleveland, Ohio.
*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.