Bargain Hunting: Stocks With Strong Earnings Growth

Last time I was screening top yielding stocks among S&P500 components and this time I run my fundamental stock screen for growth stocks. I set as a criteria "Estimated earnings growth for next 5 years" to be at least 25% per year. There are 18 companies with such a projected growth. For better picture I've also added P/E ratio and share price return on yearly and quarterly basis.

Investing strategy based on strong projected EPS growth shows following results. S&P 500 index is yearly down by -18% and average return for selected stocks is up by 20%. On quarterly basis S&P 500 down by -9% and again beaten by growth stock with average return -2%.

 

Ticker	Company Name	Forw.	EPS gr.	Yearly	Quarterly
		PE	Next 5y
(MEE)	MASSEY ENERGY CO	13	50	181%	52%
(NOV)	NATL OILWELL VARC	14	45	50%	25%
(CELG)	CELGENE CP	29	42	17%	8%
(MTW)	MANITOWOC CO INC	7	41	-36%	-39%
(MON)	MONSANTO COMPANY	27	36	79%	-1%
(ISRG)	INTUITIVE SURG IN	35	36	71%	-28%
(GT)	GOODYEAR TIRE RUB	5	35	-52%	-35%
(CAM)	CAMERON INTL CP	16	32	41%	13%
(MUR)	MURPHY OIL CP HLD	9	31	52%	8%
(RIG)	TRANSOCEAN INC	8	28	26%	-2%
(WFR)	MEMC ELECTRONIC M	10	28	-11%	-25%
(CTSH)	COGNIZANT TECH SO	16	28	-22%	6%
(GOOG)	GOOGLE	21	28	-1%	12%
(ICE)	INTERCNTNTLEXCHAN	16	26	-34%	-31%
(TIE)	TITANIUM METALS C	8	26	-65%	-36%
(SWN)	SOUTHWESTERN ENER	26	25	88%	15%
(AKAM)	AKAMAI TECH INC	16	25	-33%	2%
(SII)	SMITH INTL INC	17	25	32%	14%

Comments

[User 176952]

Do you have a Opinion or a View ?

[Vlada Kynsky]

My point is that the investing strategy betting on high growing stocks is successful.

[User 201797]

If you're going to look at, for example, the gain of these stocks over the last year, then you need to know what the 5-year-growth estimates were for them a year ago, not what it is today. They may have gone up in the past year because the estimates have gone up (Massey Energy comes to mind), in which case it's not surprising that those with high estimates also have high growth in the past year.

[p. smith]

delete those oil related companies and put ITWO in.

[truthinvesting]

Concentrate on big cap multinational consumer goods companies

[AmesTiedeman]

TIE has been decimated. She will rise again. Boone Pickens owns this name

[Think-About-It]

Ames, what do you know about TIE. Why do you like it? Boon Pickens ones less than 1% of the stock.

[AmesTiedeman]

Titanium Metals Corporation produces titanium melted and mill products. It offers titanium sponge, which is the basic form of titanium metal used in titanium products; and melted products, such as ingot, electrodes, and slab that are the result of melting sponge and titanium scrap. The company also provides mill products that are forged and rolled from ingot or slab products, including billets, bars, plates, sheets and strips, and pipes; and fabrications, which comprise spools, pipe fittings, manifolds, and vessels that are cut, formed, welded, and assembled from titanium mill products. Titanium Metals Corporation sells its products directly in the United States and Europe, as well as through independent agents and distributors worldwide. It serves commercial aerospace and military, chemical process, oil and gas, consumer, sporting goods, automotive, and power generation sectors. The company was founded in 1950 and is headquartered in Dallas, Texas

[Jmar11]

I like Oil Producers, especially the above mentioned SWN. I did some research on them and though they went down a lot in July, SWN is close to a bottom and represents a buying opportunty. Here's a pretty good analysis of nat gas producers: www.greenfaucet.com/tr....
The other recommends SWN, RRC, NFX, and HK so that opens up a few more opportunities for people looking to follow that route.