We all can relate to the disappointing feeling of having missed out on a great opportunity. The same thing can occur when we hear about a stock that has had a sizeable level of EPS growth over the past year. We tend to wonder why we didn't hear about the stock before and may even feel envious of current investors. And while many investors want to align themselves with companies that have proven themselves to be profitable, there is always the concern that the company has already peaked in terms of growth. With this in mind, we developed a list of mid cap stocks today that have experienced tremendous growth over the past year and are projected for continued growth over the next five years. Use the data and summaries below to learn more about these mid cap stocks. We think you will find the list below worthy of additional research.
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.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for mid cap stocks. Next, we then screened for businesses with strong profitability (ROA > 10%)(1-year fiscal EPS growth rate>10%). We then looked for businesses that are considered high-growth, with 5-year projected EPS growth above 25%. We did not screen out any sectors.
Do you think these mid-cap stocks have strong enough fundamentals to move higher? Use our screened list as a starting point for your own analysis.
1) Jazz Pharmaceuticals plc (JAZZ)
|Return on Assets||13.19%|
|Earnings Per Share Growth Rate||221.11%|
|5-Year Projected Earnings Per Share Growth Rate||29.43%|
Jazz Pharmaceuticals Public Limited Company, a specialty biopharmaceutical company, focuses on the identification, development, and commercialization of pharmaceutical products to meet unmet medical needs. The company was founded in 2003 and is headquartered in Dublin, Ireland.
2) Five Below, Inc. (FIVE)
|Industry||Specialty Retail, Other|
|Return on Assets||10.34%|
|Earnings Per Share Growth Rate||106.90%|
|5-Year Projected Earnings Per Share Growth Rate||34.94%|
Five Below, Inc. operates as a specialty value retailer offering merchandise for teen and pre-teen customers in the United States. The company's stores offer approximately 4,000 stock-keeping units across various product categories, including style, room, sports, media, crafts, party, candy, and seasonal. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in July 2002. Five Below, Inc. was founded in 2002 and is headquartered in Philadelphia, Pennsylvania.
3) Ulta Salon, Cosmetics & Fragrance, Inc. (ULTA)
|Return on Assets||15.41%|
|Earnings Per Share Growth Rate||63.85%|
|5-Year Projected Earnings Per Share Growth Rate||26.64%|
Ulta Salon, Cosmetics & Fragrance, Inc. operates as a beauty retailer that provides prestige, mass, and salon products; and salon services in the United States. The company offers cosmetics, including products for the face, eyes, cheeks, lips, and nails; haircare products comprising shampoos, conditioners, styling products, and hair accessories; salon styling tools, such as hair dryers, curling irons, and flat irons; skincare, and bath and body products consisting of products for the face, hands, and body; and fragrances for men and women. The company was founded in 1990 and is based in Bolingbrook, Illinois.
4) Yandex N.V. (YNDX)
|Industry||Internet Information Providers|
|Return on Assets||21.64%|
|Earnings Per Share Growth Rate||42.22%|
|5-Year Projected Earnings Per Share Growth Rate||35.48%|
Yandex N.V., an Internet and technology company, operates an Internet search engine in Russia and internationally. It offers access to a range of information available online; localized homepages for specific geographic markets; and personalized and email services. Yandex N.V. was incorporated in 2004 and is based in The Hague, the Netherlands.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 10/01/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.