As many people can attest, it is not always easy to make money. It takes a lot of planning, careful analysis, quality control, efficient operations and more. So it is impressive when companies are able to pull in strong profits. And these are the companies that investors want to align themselves with for realizing gains.
Today, we looked for companies in the basic materials sectors that have impressive earning trends. We then ran a second screen to pull out the profitable companies that also have projected EPS growth rates above 25% for the next year. The growth projections further the expectation that these companies will continue to generate these profits at even greater levels. See the list of basic materials stocks below to begin your own evaluation.
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.
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.
The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.
We first looked for basic materials stocks. We next screened for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. Next, we then screened for businesses that have strong profitability (1-year fiscal EPS Growth Rate>10%)(1-year operating margin>15%). We did not screen out any market caps.
Do you think these stocks are worth more than the market currently says? Use our screened list as a starting point for your own analysis.
1) Hecla Mining Co. (HL)
|1-Year Projected Earnings Per Share Growth Rate||200.00%|
|Earnings Per Share Growth Rate||286.71%|
|Operating Profit Margin||25.67%|
Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metals worldwide. It offers gold and silver to precious metals traders; and lead, zinc, and bulk concentrates to custom smelters. The company has two operating mines and exploration properties that include the Greens Creek mine located in Alaska and the Lucky Friday mine located in northern Idaho. Hecla Mining Company was founded in 1891 and is based in Coeur d'Alene, Idaho.
2) Midstates Petroleum Company, Inc. (MPO)
|Industry||Independent Oil & Gas|
|1-Year Projected Earnings Per Share Growth Rate||342.90%|
|Earnings Per Share Growth Rate||469.72%|
|Operating Profit Margin||35.13%|
Midstates Petroleum Company LLC engages in oil and gas exploration and development. The company was founded in 1993 and is based in Houston, Texas.
3) Alumina Ltd. (AWC)
|1-Year Projected Earnings Per Share Growth Rate||266.70%|
|Earnings Per Share Growth Rate||266.01%|
|Operating Profit Margin||22350.00%|
Alumina Limited, through its 40% equity interest in Alcoa World Alumina and Chemicals, engages in the bauxite mining, alumina refining, and aluminum smelting businesses. It has interests in eight alumina refineries and eight bauxite mines, as well as operates two aluminum smelters in Victoria, Australia.
The company also owns interests in a network of mines, refineries, and smelters in the United States, Guinea, Suriname, Jamaica, Brazil, and Spain. In addition, it owns and operates a shipping operation that transports alumina, aluminum, and raw materials worldwide. The company, formerly known as WMC Limited, was founded in 1970 and is based in Southbank, Australia.
4) Cabot Oil & Gas Corporation (COG)
|Industry||Independent Oil & Gas|
|1-Year Projected Earnings Per Share Growth Rate||82.61%|
|Earnings Per Share Growth Rate||18.19%|
|Operating Profit Margin||27.02%|
Cabot Oil & Gas Corporation, an independent oil and gas company, engages in the development, exploitation, exploration, production, and marketing of natural gas, crude oil and, and natural gas liquids in the United States. The company's properties primarily located in Appalachia, east and south Texas, and Oklahoma. It also transports, stores, gathers, and produces natural gas for resale.
The company sells its natural gas to industrial customers, local distribution companies, and gas marketers through on and off pipeline and gathering system, as well as to intrastate pipelines, natural gas processors, and marketing companies. As of December 31, 2011, it had proved reserves of approximately 3,033 billion cubic feet of natural gas equivalents. The company was founded in 1989 and is headquartered in Houston, Texas.
5) Carrizo Oil & Gas Inc. (CRZO)
|Industry||Independent Oil & Gas|
|1-Year Projected Earnings Per Share Growth Rate||123.68%|
|Earnings Per Share Growth Rate||218.37%|
|Operating Profit Margin||21.71%|
Carrizo Oil & Gas, Inc., an independent energy company, engages in the exploration, development, and production of oil and gas in the United States and the United Kingdom. The company holds interest in crude oil and liquids plays in the Eagle Ford Shale in south Texas; the Niobrara Formation in Colorado; the Utica Shale in Ohio and Pennsylvania; and the Huntington Field in the U.K. North Sea.
The company also owns interest in natural gas plays in the Barnett Shale in North Texas; and the Marcellus Shale in Pennsylvania, New York, and West Virginia; as well as in the onshore Gulf Coast area and the Camp Hill field in Texas.
As of December 31, 2011, the company had a proved oil and gas reserves of 935.6 billion cubic feet equivalent comprising 728 billion cubic feet of natural gas; 30.5 million barrels of oil or other liquid hydrocarbons (MMbbls) of oil and condensate; and 4.1 MMbbls of natural gas liquids, as well as operated 349 gross producing oil and gas wells. Carrizo Oil & Gas, Inc. was founded in 1993 and is based in Houston, Texas.
6) Gulfmark Offshore, Inc. (GLF)
|Industry||Oil & Gas Equipment & Services|
|1-Year Projected Earnings Per Share Growth Rate||119.67%|
|Earnings Per Share Growth Rate||239.94%|
|Operating Profit Margin||20.66%|
GulfMark Offshore, Inc. provides offshore marine support and transportation services primarily to companies involved in the offshore exploration and production of oil and natural gas. Its vessels offer various services supporting the construction, positioning, and ongoing operation of offshore oil and natural gas drilling rigs and platforms, and related infrastructure.
The company's vessels transport materials, supplies, and personnel to offshore facilities, as well as move and position drilling structures. Its fleet of offshore supply vessels include anchor handling, towing, and support vessels; platform supply vessels; fast supply or crew vessels; specialty vessels; standby rescue vessels; construction support vessels; and utility vessels.
The company also offers management services to other vessel owners. As of February 23, 2012, its active fleet included 73 owned vessels and 18 managed vessels. The company principally serves integrated oil and natural gas companies; independent oil and natural gas exploration and production companies working in international markets; and foreign government-owned or controlled oil and natural gas companies, as well as companies that provide logistic, construction, and other services to such oil and natural gas companies and foreign government organizations. It primarily operates in the North Sea, Southeast Asia, and the Americas. GulfMark Offshore, Inc. was founded in 1996 and is based in Houston, Texas.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/14/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.