Do you want to invest in the giants of the S&P 500? Looking for ways to dig deeper into a company's profitability? Do you look for stocks near their 52-week highs or lows? Here are some interesting ideas to get you started.
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.
We first looked for Mega Cap stocks that have strong profitability (1-year fiscal EPS Growth Rate>10%) and that are currently trading at no less than 20% below their 52-week highs. Why you wonder? The number shows these firms are doing something right consistently. The real question is "as an investor do you think the firms listed here have room to go even higher?". We did not screen out any sectors.
Do you think these mega-cap stocks deserve to trade higher? Use our list along with your own analysis.
1) Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation has a Earnings Per Share Growth of 28.20% and trading below it's 52 Week High by -3.00%. The short interest was 0.90% as of 04/24/2012. Microsoft Corporation develops, licenses, and supports a range of software products and services for various computing devices worldwide. The company's Windows & Windows Live Division segment offers PC operating system that primarily includes Windows 7 and Windows Vista operating systems; Windows live suite of applications and Web services; and Microsoft PC hardware products. Its Microsoft's Server and Tools segment provides Windows Server operating systems, Windows Azure, Microsoft SQL Server, SQL Azure, Windows Intune, Windows Embedded, Visual Studio, Silverlight, system center products, Microsoft consulting services, and product support services.
2) Apple Inc. (NASDAQ:AAPL)
Apple Inc. has a Earnings Per Share Growth of 82.63% and trading below it's 52 Week High by -13.09%. The short interest was 1.04% as of 04/24/2012. Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players; and sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Its products and services include iPhone, iPad, Mac, iPod, Apple TV, the iOS and Mac OS X operating systems, iCloud, and various accessory and support offerings, as well as a range of consumer and professional software applications. The company sells its products and services to consumers, small and mid-sized business, education, enterprise, and government customers through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers.
3) Exxon Mobil Corporation (NYSE:XOM)
|Industry:||Major Integrated Oil & Gas|
Exxon Mobil Corporation has a Earnings Per Share Growth of 35.41% and trading below it's 52 Week High by -2.02%. The short interest was 0.60% as of 04/24/2012. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. It also has interests in electric power generation facilities.
4) International Business Machines Corp. (NYSE:IBM)
|Industry:||Diversified Computer Systems|
International Business Machines Corp. has a Earnings Per Share Growth of 13.37% and trading below it's 52 Week High by -4.56%. The short interest was 1.09% as of 04/24/2012. International Business Machines Corporation provides information technology (NYSE:IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology- and process-based services. The Global Business Services segment offers consulting and systems integration, and application management services.
5) Chevron Corporation (NYSE:CVX)
|Industry:||Major Integrated Oil & Gas|
Chevron Corporation has a Earnings Per Share Growth of 41.78% and trading below it's 52 Week High by -8.46%. The short interest was 0.99% as of 04/24/2012. Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and processing, transportation, storage, and marketing of natural gas, as well as holds an interest in a gas-to-liquids project.
*Company profiles were sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.