5 Top Weighted Alpha Candidates To Consider

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Includes: MNST, OVTI, PATK, URI, VECO
by: Tactical Investor

A fool flatters himself, a wise man flatters the fool.

Edward G. Bulwer-Lytton

The single most important criteria to make it to this list was that every single stock on the list had to be among the top 100 stocks. The strength of each stock was calculated by two measures.

  1. Highest weighted Alpha - This is a measure of how much change there has been in the stock over a period of one year. Only the top candidates were selected.
  2. Relative strength - It is a measure of price trend that indicates how a stock is performing relative to its peers in the industry. Only stocks with very high relative strength values were considered.

In addition to the above the following requirements had to be met also:

  1. Net income should be trending upwards for the past 3 years
  2. Sales should be trending upwards for the past 3 years
  3. EBITDA should be trending upwards for the past 3 years
  4. Cash flow per share should be trending upwards for the past 3 years
  5. Current ratio and or quick ratio of 2.2 or higher
  6. 3-5 year projected EPS growth rate of 15% or higher

Company: Veeco Instrument (NASDAQ:VECO)

Basic Key ratios

Percentage Held by Insiders = 0.98

Growth

  1. Net Income ($mil) 12/2011 = 128
  2. Net Income ($mil) 12/2010 = 362
  3. Net Income ($mil) 12/2009 = -16
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = -64.62
  5. 5 year sales growth = 19.86%
  6. Operating margin = 24.55%
  1. EBITDA ($mil) 12/2011 = 291
  2. EBITDA ($mil) 12/2010 = 319
  3. EBITDA ($mil) 12/2009 = 24
  4. Annual Net Income this Yr/ Net Income last Yr = -64.62
  5. Cash Flow ($/share) 12/2011 = 5.49
  6. Cash Flow ($/share) 12/2010 = 5.05
  7. Cash Flow ($/share) 12/2009 = 0.16
  1. Sales ($mil) 12/2011 = 979
  2. Sales ($mil) 12/2010 = 933
  3. Sales ($mil) 12/2009 = 380
  1. Annual EPS before NRI 12/2007 = 0.12
  2. Annual EPS before NRI 12/2008 = 0.5
  3. Annual EPS before NRI 12/2009 = -0.28
  4. Annual EPS before NRI 12/2010 = 4.42
  5. Annual EPS before NRI 12/2011 = 4.82

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = -41.56
  2. Next 3-5 Year Estimate EPS Growth rate = 15
  3. EPS Growth Quarterly(1)/Q(-3) = 147.66
  4. ROE 5 Year Average 12/2011 = 11.23
  5. Return on Investment 06/2011 = 24.2
  6. Debt/Total Cap 5 Year Average 12/2011 = 20.98
  7. Current Ratio 06/2011 = 4.51
  8. Current Ratio 5 Year Average = 3
  9. Quick Ratio = 3.83
  10. Cash Ratio = 3.26
  11. Interest Coverage Quarterly = 31.77

Company: UNITED RENTALS INC (NYSE:URI)

Basic Key ratios

  1. Percentage Held by Insiders = 1.5
  2. Number of Institutional Sellers 12 Weeks = 4

Growth

  1. Net Income ($mil) 12/2011 = 101
  2. Net Income ($mil) 12/2010 = -26
  3. Net Income ($mil) 12/2009 = -62
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 2333.33
  5. Quarterly Net Income this Quarterly/same Quarter year ago = 165
  6. 5 year sales growth = -8.5%
  7. Operating margin = 18.22%
  8. Quarterly revenue growth = 25.4%
  1. EBITDA ($mil) 12/2011 = 901
  2. EBITDA ($mil) 12/2010 = 672
  3. EBITDA ($mil) 12/2009 = 606
  4. Annual Net Income this Yr/ Net Income last Yr = 488.46
  5. Cash Flow ($/share) 12/2011 = 10.08
  6. Cash Flow ($/share) 12/2010 = 8.14
  7. Cash Flow ($/share) 12/2009 = 7.39
  1. Sales ($mil) 12/2011 = 2611
  2. Sales ($mil) 12/2010 = 2237
  3. Sales ($mil) 12/2009 = 2358
  1. Annual EPS before NRI 12/2007 = 2.76
  2. Annual EPS before NRI 12/2008 = -0.19
  3. Annual EPS before NRI 12/2009 = -0.76
  4. Annual EPS before NRI 12/2010 = 0.33
  5. Annual EPS before NRI 12/2011 = 1.87

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 56.68
  2. Next 3-5 Year Estimate EPS Growth rate = 12
  3. EPS Growth Quarterly(1)/Q(-3) = 2-112.50
  4. ROE 5 Year Average 12/2011 = 162.8
  5. Return on Investment 06/2011 = 4.92
  6. Debt/Total Cap 5 Year Average 06/2011 = 73.69
  1. Current Ratio 06/2011 = 0.84
  2. Current Ratio 5 Year Average = 1.41
  3. Quick Ratio = 0.79
  4. Cash Ratio = 0.25
  5. Interest Coverage Quarterly = 1.93

Company: Omnivision Tech (NASDAQ:OVTI)

Basic Key ratios

Percentage Held by Insiders = 0.4

Growth

  1. Net Income ($mil) 12/2011 = 124
  2. Net Income ($mil) 12/2010 = 7
  3. Net Income ($mil) 12/2009 = -37
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 3.25
  5. Quarterly Net Income this Quarterly/same Quarter year ago = -99.75
  6. 5 year sales growth = 10.11%
  7. Operating margin = 10.3%
  8. Long term debt to equity = 0.05
  1. EBITDA ($mil) 12/2011 = 149
  2. EBITDA ($mil) 12/2010 = 33
  3. EBITDA ($mil) 12/2009 = -12
  4. Annual Net Income this Yr/ Net Income last Yr = 1752.38
  5. Cash Flow ($/share) 12/2011 = 2.53
  6. Cash Flow ($/share) 12/2010 = 0.57
  7. Cash Flow ($/share) 12/2009 = -0.06
  1. Sales ($mil) 12/2011 = 956
  2. Sales ($mil) 12/2010 = 603
  3. Sales ($mil) 12/2009 = 507
  1. Annual EPS before NRI 12/2007 = 0.47
  2. Annual EPS before NRI 12/2008 = 1.11
  3. Annual EPS before NRI 12/2009 = -0.59
  4. Annual EPS before NRI 12/2010 = 0.13
  5. Annual EPS before NRI 12/2011 = 2.12

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = -45.35
  2. Next 3-5 Year Estimate EPS Growth rate = 15
  3. EPS Growth Quarterly(1)/Q(-3) = -101
  4. 5 Year History EPS Growth 12/2011 = 28.73
  5. 5 Year History EPS Growth 09/2011 = 28.73
  6. ROE 5 Year Average 12/2011 = 6.53
  7. Return on Investment 12/2011 = 11.22
  8. Debt/Total Cap 5 Year Average 12/2011 = 6.2
  1. Current Ratio 12/2011 = 6.2
  2. Current Ratio 09/2011 = 6.2
  3. Current Ratio 06/2011 = 3.85
  4. Current Ratio 5 Year Average = 4.97
  5. Quick Ratio = 4.19
  6. Cash Ratio = 3.23
  7. Interest Coverage Quarterly = 1.11

Company: Monster Beverage (NASDAQ:MNST)

Basic Key ratios

  1. Percentage Held by Insiders = 10

Growth

  1. Net Income ($mil) 12/2011 = 286
  2. Net Income ($mil) 12/2010 = 212
  3. Net Income ($mil) 12/2009 = 209
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 34.99
  5. Quarterly Net Income this Quarterly/same Quarter year ago = 31.35
  6. 5 year sales growth = 19.19%
  7. Operating margin = 26.8%
  8. Quarterly revenue growth = 28%
  9. Long term debt to equity = 0.00
  10. Quarterly earnings growth rate = 31.4%
  1. EBITDA ($mil) 12/2011 = 474
  2. EBITDA ($mil) 12/2010 = 361
  3. EBITDA ($mil) 12/2009 = 342
  4. Annual Net Income this Yr/ Net Income last Yr = 34.99
  5. Cash Flow ($/share) 12/2011 = 1.74
  6. Cash Flow ($/share) 12/2010 = 1.26
  7. Cash Flow ($/share) 12/2009 = 1.22
  1. Sales ($mil) 12/2011 = 1703
  2. Sales ($mil) 12/2010 = 1304
  3. Sales ($mil) 12/2009 = 1143
  1. Annual EPS before NRI 12/2007 = 0.76
  2. Annual EPS before NRI 12/2008 = 0.88
  3. Annual EPS before NRI 12/2009 = 1.12
  4. Annual EPS before NRI 12/2010 = 1.14
  5. Annual EPS before NRI 12/2011 = 1.53

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 91.7
  2. Next 3-5 Year Estimate EPS Growth rate = 16
  3. EPS Growth Quarterly(1)/Q(-3) = -118.64
  4. ROE 5 Year Average 12/2011 = 36.57
  5. ROE 5 Year Average 09/2011 = 36.57
  6. ROE 5 Year Average 06/2011 = 36.97
  7. Return on Investment 06/2011 = 30.81
  8. Debt/Total Cap 5 Year Average 12/2011 = 0
  1. Current Ratio 06/2011 = 4.45
  2. Current Ratio 5 Year Average = 5.02
  3. Quick Ratio = 3.86
  4. Cash Ratio = 3.04

Company: Patrick Industries (NASDAQ:PATK)

Basic Key ratios

  1. Percentage Held by Insiders = 10.6
  2. Number of Institutional Sellers 12 Weeks = 5

Growth

  1. Net Income ($mil) 12/2011 = 8
  2. Net Income ($mil) 12/2010 = 1
  3. Net Income ($mil) 12/2009 = -5
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 1701.31
  5. Quarterly Net Income this Quarterly/same Quarter year ago = 505.75
  6. 5 year sales growth = -6.56%
  7. Operating margin = 5.8%
  8. Quarterly revenue growth = 47%
  1. EBITDA ($mil) 12/2011 = 18
  2. EBITDA ($mil) 12/2010 = 12
  3. EBITDA ($mil) 12/2009 = 7
  4. Annual Net Income this Yr/ Net Income last Yr = 594.26
  1. Cash Flow ($/share) 12/2011 = 1.61
  2. Cash Flow ($/share) 12/2010 = 0.46
  3. Cash Flow ($/share) 12/2009 = 0.16
  1. Sales ($mil) 12/2011 = 308
  2. Sales ($mil) 12/2010 = 278
  3. Sales ($mil) 12/2009 = 213
  1. Annual EPS before NRI 12/2007 = -0.64
  2. Annual EPS before NRI 12/2008 = N/A
  3. Annual EPS before NRI 12/2009 = -0.59
  4. Annual EPS before NRI 12/2010 = -0.1
  5. Annual EPS before NRI 12/2011 = 0.99

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 425.12
  2. ROE 5 Year Average 12/2011 = -42.47
  3. Return on Investment 06/2011 = 17.02
  4. Debt/Total Cap 5 Year Average 12/2011 = 40.41
  1. Current Ratio 06/2011 = 2.24
  2. Current Ratio 5 Year Average = 1.44
  3. Quick Ratio = 0.85
  4. Cash Ratio = 0.14
  5. Interest Coverage Quarterly = 2.47

Disclaimer

This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies - let the buyer beware.

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

Additional disclosure: EPS and EPS surprise charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com.