Competitors in distance events are well aware of the danger of peaking too early. When that happens, they often find it very difficult to sustain their pace and end up slowing down when the competition starts zooming past. In terms of investments, we want to align ourselves with companies that have the discipline and experience to grow at a steady and strong rate. To find companies with these qualities, we searched specifically for large cap-sized companies that have produced commendable growth in earnings. Further, they do not appear to have hit a plateau because they all have projected EPS growth rates above 25% for the coming year. The data below is a helpful place to start your own evaluation of these large cap stocks.
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 Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue
We first looked for large cap stocks. We then looked for businesses that have high future earnings per share growth forecasts (1-year projected EPS Growth Rate>25%). We next screened for businesses that have posted strong earnings growth for shareholders over an extended period of time (1-year fiscal EPS growth rate>10%)(Net Margin [TTM]>10%). We did not screen out any sectors.
Do you think these large-cap stocks are undervalued and have room to trade higher? Use our screened list as a starting point for your own analysis.
1) Goldcorp Inc. (GG)
|1-Year Projected Earnings Per Share Growth Rate||49.49%|
|Earnings Per Share Growth Rate||16.82%|
Goldcorp Inc. engages in the acquisition, development, exploration, and operation of precious metal properties. It primarily explores gold, silver, copper, lead, and zinc. The company's principal mining properties include Red Lake, Porcupine, and Musselwhite gold mines in Canada; Peasquito gold/silver/lead/zinc mine, and Los Filos and El Sauzal gold mines in Mexico; Marlin gold/silver mine in Guatemala; Alumbrera gold/copper mine in Argentina; and Marigold and Wharf gold mines in the United States. Goldcorp Inc. was founded in 1954 and is headquartered in Vancouver, Canada.
2) ICICI Bank Ltd. (IBN)
|Industry||Foreign Regional Banks|
|1-Year Projected Earnings Per Share Growth Rate||63.16%|
|Earnings Per Share Growth Rate||28.10%|
ICICI Bank Limited and its subsidiaries provide banking and financial services to corporate and retail customers in India and internationally. It offers commercial banking, retail banking, project and corporate finance, working capital finance, insurance, venture capital and private equity, investment banking, broking, and Treasury products and services. The company was founded in 1955 and is based in Mumbai, India.
3) Kinder Morgan, Inc. (KMI)
|Industry||Oil & Gas Pipelines|
|1-Year Projected Earnings Per Share Growth Rate||70.89%|
|Earnings Per Share Growth Rate||238.13%|
Kinder Morgan, Inc. owns and operates energy transportation and storage assets in the United States and Canada. The company operates in six segments: Products Pipelines-KMP, Natural Gas PipelinesKMP, CO2KMP, TerminalsKMP, Kinder Morgan CanadaKMP, and NGPL PipeCo LLC. Kinder Morgan, Inc. was founded in 2006 and is based in Houston, Texas.
4) Canadian Natural Resources Limited (CNQ)
|Industry||Independent Oil & Gas|
|1-Year Projected Earnings Per Share Growth Rate||39.40%|
|Earnings Per Share Growth Rate||55.90%|
Canadian Natural Resources Limited engages in the acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas liquids, and natural gas. Its products include natural gas, light and medium crude oil, primary heavy crude oil, bitumen, synthetic crude oil, and NGLs. Canadian Natural Resources Limited was founded in 1973 and is headquartered in Calgary, Canada.
5) Eldorado Gold Corp. (EGO)
|1-Year Projected Earnings Per Share Growth Rate||43.40%|
|Earnings Per Share Growth Rate||42.68%|
Eldorado Gold Corporation, together with its subsidiaries, engages in the exploration, development, mining, and production of gold properties in Brazil, China, Greece, and Turkey. It operates the Kişladağ and Efemukuru gold mines in Turkey; the Jinfeng, Tanjianshan, and White Mountain gold mines in China; and the Vila Nova iron ore mine in Brazil. The company was formerly known as Eldorado Corporation Ltd. and changed its name to Eldorado Gold Corporation in April 1996. Eldorado Gold Corporation was founded in 1992 and is headquartered in Vancouver, Canada.
6) Yamana Gold, Inc. (AUY)
|1-Year Projected Earnings Per Share Growth Rate||52.58%|
|Earnings Per Share Growth Rate||19.74%|
Yamana Gold Inc. engages in the exploration, development, and production of mineral properties, primarily gold. It also explores for copper, molybdenum, zinc, and silver metals. The company's property portfolio includes seven operating gold mines, including Chapada mine, Jacobina mining complex, and Fazenda Brasileiro mine in Brazil; El Pen mine and Minera Florida mine in Chile; Gualcamayo mine in Argentina; and Mercedes mine in Mexico. Yamana Gold Inc. was founded in 2003 and is headquartered in Toronto, Canada.
7) Continental Resources Inc. (CLR)
|Industry||Independent Oil & Gas|
|1-Year Projected Earnings Per Share Growth Rate||38.65%|
|Earnings Per Share Growth Rate||142.92%|
Continental Resources, Inc. engages in the exploration, development, and production of crude oil and natural gas primarily in the north, south, and east regions of the United States. The company primarily sells its oil and natural gas production to end users, as well as to midstream marketing companies or oil refining companies at the lease. Continental Resources, Inc. was founded in 1967 and is headquartered in Enid, Oklahoma.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 11/01/2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.