If you're looking to add some growth to your portfolio, here are some ideas to get started on your stock search.
Based on the theoretical assumption that if P/E is equal to a constant K, growth in EPS estimates should be matched by proportionate growth in price. When they don't match up, a mispricing may have occurred. We screened for tech stocks exhibiting this mismatch between changes in EPS estimate and price.
We also screened for high-growth stocks, with 5-year projected EPS growth above 20%.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these companies will see this high growth? Use this list as a starting point for your own analysis.
1. SouFun Holdings Ltd. (NYSE:SFUN): Provides marketing, listing, technology, and information consultancy services to real estate and home furnishing industries in the People's Republic of China. 5-year projected EPS growth at 36.69%. The EPS estimate for the company's current year increased from 1.38 to 1.42 over the last 30 days, an increase of 2.9%. This increase came during a time when the stock price changed by -3.23% (from 18.6 to 18 over the last 30 days).
2. TeleNav, Inc. (NASDAQ:TNAV): Provides location based services for consumers and enterprises in the United States and internationally. 5-year projected EPS growth at 26.84%. The EPS estimate for the company's current year increased from 0.66 to 0.68 over the last 30 days, an increase of 3.03%. This increase came during a time when the stock price changed by -1.02% (from 7.85 to 7.77 over the last 30 days).
3. Tessera Technologies Inc. (TSRA): Develops and licenses miniaturization technologies for chip-scale, multichip, and wafer-level packaging, which enables companies to produce chips for digital audio players, digital cameras, personal computers, personal digital assistants, video game consoles, and mobile phones. 5-year projected EPS growth at 25.00%. The EPS estimate for the company's current year increased from 0.76 to 0.87 over the last 30 days, an increase of 14.47%. This increase came during a time when the stock price changed by 6.09% (from 18.05 to 19.15 over the last 30 days).
*EPS data sourced from Yahoo Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.