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As of November 2, 350 companies which are included in the S&P 500 index have reported earnings for Q3 2012. Of these companies, 70% have reported earnings above the mean estimate, but only 40% have reported sales above the mean estimate

Historical studies have shown that on average, for companies that beat on earnings and sales together, their shares tend to outperform the market over the next six months.

I searched for stocks which are included in the S&P 500 index with above average growth prospects and topped the market consensus for Q3 2012 both on earnings and sales.

I have elaborated a screening method which shows stock candidates following these lines. Nonetheless, the screening method should only serve as a basis for further research.

After running this screen on November 04, I obtained as results the 5 following stocks:

AFLAC Inc. (NYSE:AFL)

Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance.

Aflac has a low debt (total debt to equity is only 0.28) and its trailing P/E is very low at 8.38 and the forward P/E is even lower at 7.30 and the PEG ratio is also very low at 0.78. The average annual earnings growth estimates for the next 5 years is 10.80%. The forward annual dividend yield is quite high at 2.77% and the payout ratio is only 23.2%. For the third quarter, Aflac beat expectations on revenues and beat expectations on earnings per share. Aflac reported revenue of $6.85 billion better than the analysts' estimates of $6.56 billion, the reported sales were 13% higher than the prior-year quarter's $6.06 billion. EPS came in at $1.77 and beat analysts' average earnings estimates of $1.66 per share. GAAP EPS of $2.16 for Q3 were 36% higher than the prior-year quarter's $1.59 per share. AFL stock looks quite attractive.

Chart: finviz.com

Citigroup, Inc. (NYSE:C)

Citigroup is a diversified financial services holding company. It provides a range of financial products and services to consumers, corporations, governments, and institutions worldwide.

Citigroup has a trailing P/E of 15.80 and a very low forward P/E of 8.17; the PEG ratio is 1.50. The price to book ratio is very low at 0.59 and the average annual earnings growth estimates for the next 5 years is 10.50%. The forward annual dividend yield is 0.11% and the payout ratio is only 1.7%. On October 15, Citigroup reported 3Q operating EPS of $1.06 beating $0.97 consensus estimates. The beat was driven by stronger than expected revenues, up 3% sequentially to $19.4 billion vs. $18.7 billion estimates. All these factors make the stock quite attractive.

Chart: finviz.com

The Goldman Sachs Group, Inc. (NYSE:GS)

Goldman Sachs provides investment banking, securities, and investment management services, as well as a range of financial services to corporations, financial institutions, governments and high-net-worth individuals worldwide.

Goldman Sachs has a very low trailing P/E of 11.86 and a very low forward P/E of 9.61, the PEG ratio is also very low at 0.64. The price to book ratio is very low at 0.90 and the average annual earnings growth estimates for the next 5 years is very high at 18.61%. The forward annual dividend yield is 1.62% and the payout ratio is only 19.2%. On October 16, Goldman Sachs reported its third quarter financial results. The net income was $1.5 billion, or $2.85 per share, analysts had been predicting $2.19 per share. Revenue also beat estimates, surpassed the $7.2 billion forecast by analysts and more than doubling to $8.4 billion, from $3.6 billion a year ago. GS stock looks quite attractive.

Chart: finviz.com

Juniper Networks, Inc. (NYSE:JNPR)

Juniper Networks, Inc. designs, develops, and sells products and services that provide network infrastructure for networking requirements of service providers, enterprises, governments, and research and public sector organizations worldwide.

Juniper Networks has a very low debt (total debt to equity is only 0.14) and its price to free cash flow for the trailing 12 months is 27.2. The forward P/E is 15.42 and the PEG ratio is 1.61. The average annual earnings growth estimates for the next 5 years is 14%. For the third quarter, JNPR reported revenue of $1.18 billion, up 4% sequentially, up 1% from a year ago, and ahead of the Street at $1.06 billion. Non-GAAP profits of 22 cents a share topped the Street at 17 cents. JNPR stock looks quite attractive.

Chart: finviz.com

Teradyne Inc. (NYSE:TER)

Teradyne, Inc., together with its subsidiaries, provides automatic test equipment products and services worldwide.

Teradyne has a very low debt (total debt to equity is only 0.10) and its price to free cash flow for the trailing 12 months is very low at 9.24. The trailing P/E is very low at 9.63 and the forward P/E is also very low at 9.63 and the PEG ratio is also very low at 0.75. The average annual earnings growth estimates for the next 5 years is 12.90%. For the third quarter, Teradyne beat expectations on revenues and beat expectations on earnings per share. Teradyne reported revenue of $463.4 million better than the analysts' estimates of $439.5 million, the reported sales were 35% higher than the prior-year quarter's $344.4 million. EPS came in at $0.53 and beat analysts' average earnings estimates of $0.45 per share. GAAP EPS of $0.39 for Q3 were 56% higher than the prior-year quarter's $0.25 per share. The company is trading 15% below its 52-week high, and has 28% upside potential based on the consensus mean target price of $19.62. TER stock seems to be a good investment right now.

Chart: finviz.com

Source: 5 Large Cap Growth Stocks To Beat The Market