The following is a list of high growth stocks, as defined by past EPS growth and projected EPS growth. All of the companies have market caps north of $300M, reporting EPS growth of more than 15% over the past five years and projected EPS growth rates above 20% for the next five years.
Additionally, these companies have seen significant institutional selling over the last two quarters.
Is the smart money underestimating these companies? Is this excessive pessimism justified? What do you think? Use this list as a starting point for your own analysis.
Institutional data sourced from Fidelity, short float and performance data sourced from Finviz.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.
The list has been sorted alphabetically by company name.
1. Aixtron AG (AIXG): Diversified Machinery Industry. Market cap of $4.28B. EPS have grown by 34.42% over the past 5 years, and EPS is projected to grow by 67.5% over the next five years. Net institutional shares sold during current quarter at -236.9K, vs. -32.1K net institutional shares sold during previous quarter. This is a risky stock that is significantly more volatile than the overall market (beta = 2.74). The stock has gained 38.% over the last year.
2. Align Technology Inc. (ALGN): Medical Appliances & Equipment Industry. Market cap of $1.58B. EPS have grown by 111.69% over the past 5 years, and EPS is projected to grow by 26.0% over the next five years. Net institutional shares sold during current quarter at -2.8M, vs. -2.3M net institutional shares sold during previous quarter. The stock is a short squeeze candidate, with a short float at 13.16% (equivalent to 11.6 days of average volume). The stock has gained 8.23% over the last year.
3. American Public Education, Inc. (APEI): Business Services Industry. Market cap of $781.62M. EPS have grown by 34.55% over the past 5 years, and EPS is projected to grow by 25.4% over the next five years. Net institutional shares sold during current quarter at -781.0K, vs. -426.4K net institutional shares sold during previous quarter. The stock is a short squeeze candidate, with a short float at 9.33% (equivalent to 9.52 days of average volume). Exhibiting strong upside momentum--currently trading 8.11% above its SMA20, 12.57% above its SMA50, and 16.29% above its SMA200. The stock has had a good month, gaining 22.99%.
4. American Tower Corp. (AMT): Diversified Communication Services Industry. Market cap of $21.04B. EPS have grown by 80.12% over the past 5 years, and EPS is projected to grow by 22.41% over the next five years. Net institutional shares sold during current quarter at -2.8M, vs. -7.7M net institutional shares sold during previous quarter. Relatively low correlation to the market (beta = 0.68), which may be appealing to risk averse investors. The stock has gained 23.24% over the last year.
5. Aruba Networks, Inc. (ARUN): Networking & Communication Devices Industry. Market cap of $2.83B. EPS have grown by 83.6% over the past 5 years, and EPS is projected to grow by 25.0% over the next five years. Net institutional shares sold during current quarter at -4.9M, vs. -2.2M net institutional shares sold during previous quarter. The stock is a short squeeze candidate, with a short float at 15.58% (equivalent to 5.67 days of average volume). Exhibiting strong upside momentum--currently trading 6.96% above its SMA20, 17.12% above its SMA50, and 42.67% above its SMA200.
6. Athenahealth, Inc. (ATHN): Business Services Industry. Market cap of $1.56B. EPS have grown by 28.51% over the past 5 years, and EPS is projected to grow by 37.21% over the next five years. Net institutional shares sold during current quarter at -2.6M, vs. -2.2M net institutional shares sold during previous quarter. The stock is a short squeeze candidate, with a short float at 19.81% (equivalent to 14.13 days of average volume). The stock has gained 21.27% over the last year.
7. Deckers Outdoor Corp. (DECK): Apparel Footwear & Accessories Industry. Market cap of $3.22B. EPS have grown by 37.92% over the past 5 years, and EPS is projected to grow by 24.33% over the next five years. Net institutional shares sold during current quarter at -2.4M, vs. -866.4K net institutional shares sold during previous quarter. It's been a rough couple of days for the stock, losing 6.% over the last week.
8. DG FastChannel, Inc. (DGIT): Business Services Industry. Market cap of $926.27M. EPS have grown by 28.67% over the past 5 years, and EPS is projected to grow by 20.6% over the next five years. Net institutional shares sold during current quarter at -407.4K, vs. -2.7M net institutional shares sold during previous quarter. Exhibiting strong upside momentum--currently trading 8.53% above its SMA20, 13.25% above its SMA50, and 13.64% above its SMA200. The stock has had a good month, gaining 19.71%.
9. DIRECTV (DTV): CATV Systems Industry. Market cap of $37.78B. EPS have grown by 62.58% over the past 5 years, and EPS is projected to grow by 20.82% over the next five years. Net institutional shares sold during current quarter at -44.0M, vs. -35.9M net institutional shares sold during previous quarter. Might be undervalued at current levels, with a PEG ratio at 0.9, and P/FCF ratio at 13.54. The stock has gained 30.94% over the last year.
10. Exterran Holdings, Inc. (EXH): Oil & Gas Equipment & Services Industry. Market cap of $1.42B. EPS have grown by 88.08% over the past 5 years, and EPS is projected to grow by 25.0% over the next five years. Net institutional shares sold during current quarter at -944.5K, vs. -298.2K net institutional shares sold during previous quarter. The stock is a short squeeze candidate, with a short float at 11.91% (equivalent to 14.51 days of average volume). The stock has lost 6.81% over the last year.
11. HDFC Bank Ltd. (HDB): Foreign Regional Banks Industry. Market cap of $23.21B. EPS have grown by 19.73% over the past 5 years, and EPS is projected to grow by 30.0% over the next five years. Net institutional shares sold during current quarter at -918.1K, vs. -312.4K net institutional shares sold during previous quarter. The stock has gained 22.15% over the last year.
12. Illumina Inc. (ILMN): Biotechnology Industry. Market cap of $8.34B. EPS have grown by 53.24% over the past 5 years, and EPS is projected to grow by 28.11% over the next five years. Net institutional shares sold during current quarter at -657.5K, vs. -463.2K net institutional shares sold during previous quarter. Relatively low correlation to the market (beta = 0.52), which may be appealing to risk averse investors. It's been a rough couple of days for the stock, losing 5.78% over the last week.
13. IMAX Corporation (IMAX): Photographic Equipment & Supplies Industry. Market cap of $1.73B. EPS have grown by 62.65% over the past 5 years, and EPS is projected to grow by 24.93% over the next five years. Net institutional shares sold during current quarter at -1.8M, vs. -1.1M net institutional shares sold during previous quarter. The stock has gained 89.61% over the last year.
14. Kadant Inc. (KAI): Paper & Paper Products Industry. Market cap of $304.99M. EPS have grown by 16.12% over the past 5 years, and EPS is projected to grow by 21.0% over the next five years. Net institutional shares sold during current quarter at -46.1K, vs. -167.8K net institutional shares sold during previous quarter. The stock has had a couple of great days, gaining 17.91% over the last week.
15. Panasonic Corporation (PC): Electronic Equipment Industry. Market cap of $27.70B. EPS have grown by 26.13% over the past 5 years, and EPS is projected to grow by 55.6% over the next five years. Net institutional shares sold during current quarter at -5.1M, vs. -5.6M net institutional shares sold during previous quarter. The stock has lost 5.97% over the last year.
16. Priceline.com Incorporated (PCLN): General Entertainment Industry. Market cap of $21.86B. EPS have grown by 19.67% over the past 5 years, and EPS is projected to grow by 21.47% over the next five years. Net institutional shares sold during current quarter at -430.7K, vs. -792.3K net institutional shares sold during previous quarter. The stock has gained 84.48% over the last year.
17. STMicroelectronics NV (STM): Semiconductor Industry. Market cap of $11.48B. EPS have grown by 25.76% over the past 5 years, and EPS is projected to grow by 21.8% over the next five years. Net institutional shares sold during current quarter at -1.1M, vs. -11.2M net institutional shares sold during previous quarter. Exhibiting strong upside momentum--currently trading 5.44% above its SMA20, 12.67% above its SMA50, and 45.71% above its SMA200. The stock has gained 45.44% over the last year.
18. WMS Industries Inc. (WMS): Recreational Goods Industry. Market cap of $2.24B. EPS have grown by 35.34% over the past 5 years, and EPS is projected to grow by 23.02% over the next five years. Net institutional shares sold during current quarter at -1.2M, vs. -934.5K net institutional shares sold during previous quarter. The stock is currently stuck in a downtrend, trading -6.69% below its SMA20, -11.32% below its SMA50, and -7.37% below its SMA200. The stock has lost 0.69% over the last year.
19. Yingli Green Energy Holding Co. Ltd. (YGE): Semiconductor Industry. Market cap of $1.72B. EPS have grown by 77.15% over the past 5 years, and EPS is projected to grow by 23.8% over the next five years. Net institutional shares sold during current quarter at -2.2M, vs. -3.1M net institutional shares sold during previous quarter. This is a risky stock that is significantly more volatile than the overall market (beta = 3.05). It's been a rough couple of days for the stock, losing 10.03% over the last week.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
