10 Companies With Roaring Top Line Growth, Impressive Profitability, And Market Performance

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Includes: AAPL, AHGP, ASML, BIDU, BKNG, BPI, HFC, KLIC, SPRD, TPX
by: Follow My Alpha

While the pundits on TV would have you think that there isn’t any growth potential, they're dead wrong. Things on a macro scale may be far from ideal but regardless, we have a list of unique firms that are still achieving stellar top line growth, profitability, and market performance.

The 1-Year Fiscal Revenue Growth Rate is a good starting place relative to understanding a firm’s ability to grow the top line over varying economic cycles. As well, this helps average out all-star quarters that might lead an investor to believe that the firm is doing better than it really is. Given the perceived or perhaps actual parabolic economic landscape, this metric shouldn’t shouldn’t be underestimated.

The Return on Equity (ROE) metric is a straightforward way to understand exactly how much shareholder value a firm is being added. This ratio translates net income into a percentage of shareholder equity and illustrates a rate of return. Put more simply, it shows an investor how much profit is being generated from shareholder equity alone.

We ran a screen for firms that have illustrated strong profitability relative to their twelve month trailing ROE (X>10). From this narrowed pool, we then narrowed the list that had strong top line growth (1-Year Fiscal Revenue Growth Rate>30%) that have also outperformed the S&P 500 YTD. We did not screen out any sectors or market caps.

The list is ranked from highest to lowest by ROE (TTM):

1. Tempur-Pedic International, In. (NYSE:TPX)

Sector

Consumer Cyclical

Industry

Home Furnishings & Fixtures

Market Cap

$4,529M

Beta

1.83

The firm is a manufactures and sells premium mattresses along with pillows. The company has a 1-Year fiscal revenue growth rate of 33.00%. TPX has a ROE (TTM) of 215.62%. The firm has gained 68.50% YTD. The short interest was 10.70% as of 09/30/2011.

2. Bridgepoint Education, Inc. (NYSE:BPI)

Sector

Consumer Defensive

Industry

Education & Training Services

Market Cap

$1,098M

Beta

2.38

The company has a 1-Year fiscal revenue growth rate of 56.99%. BPI has a ROE (TTM) of 65.64%. The firm has gained 10.05% YTD. The short interest was 73.30% as of 09/30/2011.

3. Baidu, Inc. (NASDAQ:BIDU)

Sector

Technology

Industry

Internet Content & Information

Market Cap

$42,626M

Beta

1.50

The firm is the dominant Mainland China search engine. The company has a 1-Year fiscal revenue growth rate of 77.96%. BIDU has a ROE (TTM) of 56.76%. The firm has gained 26.55% YTD. The short interest was N/A as of 09/30/2011.

4. ASML Holding NV. (NASDAQ:ASML)

Sector

Technology

Industry

Semiconductor Equipment & Materials

Market Cap

$17,682M

Beta

1.35

The firm offers advanced technology systems wthin semiconductor space. The company has a 1-Year fiscal revenue growth rate of 182.44 %. ASML has a ROE (TTM) of 56.72 %. The firm has gained 5.63 % YTD. The short interest was 2.00% as of 09/30/2011.

5. Spreadtrum Communications, Inc. (NASDAQ:SPRD)

Sector

Technology

Industry

Semiconductors

Market Cap

$1,105M

Beta

1.25

The firm designs and sells baseband processor solutions for the wireless space. The company has a 1-Year fiscal revenue growth rate of 229.63%. SPRD has a ROE (TTM) of 56.67%. The firm has gained 25.10% YTD. The short interest was N/A as of 09/30/2011.

6. Alliance Holdings GP, L.P. (NASDAQ:AHGP)

Sector

Basic Materials

Industry

Industrial Metals & Minerals

Market Cap

$2,817M

Beta

0.74

The firm produces and sells steam coal in the US. The company has a 1-Year fiscal revenue growth rate of 30.81%. AHGP has a ROE (TTM) of 52.87%. The firm has gained 1.23% YTD. The short interest was 0.70% as of 09/30/2011.

7. Kulicke & Soffa Industries Inc. (NASDAQ:KLIC)

Sector

Technology

Industry

Semiconductor Equipment & Materials

Market Cap

$659M

Beta

3.00

The firm makes, sells, and services capital equipment & packaging materials. The company has a 1-Year fiscal revenue growth rate of 238.65%. KLIC has a ROE (TTM) of 49.84%. The firm has gained 25.9% YTD. The short interest was 5.90% as of 09/30/2011.

8. HollyFrontier Corp. (NYSE:HFC)

Sector

Energy

Industry

Oil & Gas Refining & Marketing

Market Cap

$7,043M

Beta

0.75

The firm is an independent petroleum refiner that produces light products. The company has a 1-Year fiscal revenue growth rate of 72.17%. HFC has a ROE (TTM) of 42.76%. The firm has gained 68.10% YTD. The short interest was 10.10% as of 09/30/2011.

9. Priceline.com, Inc. (PCLN)

Sector

Consumer Cyclical

Industry

Leisure

Market Cap

$24,659M

Beta

1.08

Offering services from airline tickets to hotel rooms to car rentals, priceline.com allows buyers to name their own price. The company has a 1-Year fiscal revenue growth rate of 31.93 %. PCLN has a ROE (TTM) of 42.67 %. The firm has gained 24.00 % YTD. The short interest was N/A as of 09/30/2011.

10. Apple, Inc. (NASDAQ:AAPL)

Sector

Technology

Industry

Computer Systems

Market Cap

$364,226M

Beta

0.87

The company is a leader with electronic items such as the iPad and iPhone. The company has a 1-Year fiscal revenue growth rate of 52.02%. AAPL has a ROE (TTM) of 41.99%. The firm has gained 21.80% YTD. The short interest was N/A as of 09/30/2011.

We hope this list helps as investors do their own due diligence relative to firms that hold strong top line performance and profitability.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.