Most of us want to project just the right amount of confidence. Too much or too little tends to be a turn off. We want the companies we invest in to find that middle ground as well. Attributes that point to companies with a sound level of confidence are those that have a positive future outlook that is reinforced by a solid track record of growth. To find companies that fit within this framework, we focused on mid caps that are forecasted for expansion in the near future and have maintained healthy debt ratios. By keeping debt to a minimum, these companies have not compromised their infrastructure. Take a look at the mid-cap stocks listed below to see if any pique your interest.
The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble.
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. Next, we then screened for businesses that have maintained a sound capital structure (D/E Ratio<.1). We then screened for businesses with estimated high-growth, with 1-year projected EPS growth above 25%. We did not screen out any sectors.
Do you think these mid-cap stocks have what it takes to grow? Use our screened list as a starting point for your own analysis.
1) HomeAway, Inc. (AWAY)
|Industry||Internet Information Providers|
|1-Year Projected Earnings Per Share Growth Rate||40.43%|
HomeAway, Inc., together with its subsidiaries, operates an online marketplace for the vacation rental industry worldwide. Its vacation rental properties consist of homes, condominiums, villas, and cabins to the public on a nightly, weekly or monthly basis. The company's online vacation rental property marketplace enables property owners and managers to market properties available for rental to vacation travelers who rely on its Websites to search for and find available properties. The company was formerly known as CEH Holdings, Inc. and changed its name to HomeAway, Inc. in 2006. HomeAway, Inc. was founded in 2004 and its headquarters is in Austin, Texas.
2) Pan American Silver Corp. (PAAS)
|1-Year Projected Earnings Per Share Growth Rate||29.79%|
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 its headquarters is in Vancouver, Canada.
3) Youku Inc. (YOKU)
|Industry||Internet Information Providers|
|1-Year Projected Earnings Per Share Growth Rate||107.10%|
Youku Tudou Inc. operates as an Internet television company in the People's Republic of China. Its Internet television platform enables consumers to search, view, and share video content across various devices. The company's services for users comprise online video content library consisting primarily of professionally produced content, including television serial dramas, movies, current event reports, variety shows and music videos. The company was formerly known as Youku Inc. and changed its name to Youku Tudou Inc. in August 2012. Youku Tudou Inc. was founded in 2005 and its headquarters is in Beijing, the People's Republic of China.
4) Qihoo 360 Technology Co. Ltd (QIHU)
|Industry||Internet Service Providers|
|1-Year Projected Earnings Per Share Growth Rate||52.11%|
Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. Its principal products include 360 Safe Guard, an Internet security product for Internet security and system optimization; 360 Anti-Virus, an anti-virus application to protect users' computers against trojan horses, viruses, worms, adware, and other forms of malware; and 360 Mobile Safe, a security program for the Google Android, Apple iOS, and Nokia Symbian smartphone operating systems. The company was formerly known as Qihoo Technology Company Limited and changed its name to Qihoo 360 Technology Co. Ltd. in December 2010. Qihoo 360 Technology Co. was founded in 2005 and is based in Beijing, the People's Republic of China.
Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 10/08/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.