Growth Ideas: 10 High Growth Stocks with Solid Profitability

Growth Ideas: 10 High Growth Stocks with Solid Profitability

Research  these Stocks on Kapitall’s Playground Now

 
research now

Forecasts for the global economy remain disjointed. While some analysts believe the markets are in store for a rebound, others only see doom and gloom. To be sure, there is no clear answer.

Considering the uncertainties and the potential for "doom and gloom," we wanted to explore growth stock ideas that could be used as a hedge against an economic slowdown.

To create the list below, we started with a universe of about 150 growth stocks. By this we mean all of the stocks mentioned below have seen their earnings per share grow by more than 20% over the last five years.

In addition, Wall Street analysts project rapid earnings growth over the next five years for these stocks.

The DuPont Equation

Next, we collected data on profitability sources. One of analysts' favorite profitability tools is DuPont analysis – it's a way to look at changes in return on equity (ROE) profitability [i.e. net income/equity] by attributing those changes to certain sources. Some of the sources are more sustainable than others, thereby giving an analysis of strength in increasing profitability.

DuPont analysis breaks up a company's ROE into three components: net margin, asset turnover, and leverage. Companies with increasing net margin, increasing asset turnover, and decreasing leverage are viewed favorably.

Companies passing all requirements are thus experiencing increasing profits due to operations and not to increased use of leverage.

The List

Do you think these companies have strong enough profitability to withstand whatever the market has in store?

List sorted by change in ROE.

 

 

1. Constant Contact, Inc. (CTCT, Earnings, Analysts, Financials): Provides on-demand email marketing, social media marketing, event marketing, and online survey solutions primarily in the United States. Market cap of $739.93M. The company's earnings per share have grown by 95.36% over the last five years, and Wall Street analysts project the company's earnings to grow by 40.6% over the next five years. MRQ Net Profit Margin increased to 9.84% from 6.56% year-over-year, Sales/Assets increased to 0.29 from 0.28, while Assets/Equity decreased to 1.32 from 1.36.

 

2. OYO Geospace Corp. (OYOG, Earnings, Analysts, Financials): Engages in designing and manufacturing instruments and equipments used in the acquisition and processing of seismic data; and in the characterization and monitoring of producing oil and gas reservoirs. Market cap of $550.86M. The company's earnings per share have grown by 39.11% over the last five years, and Wall Street analysts project the company's earnings to grow by 37% over the next five years. MRQ Net Profit Margin increased to 19.86% from 14.40% year-over-year, Sales/Assets increased to 0.23 from 0.22, while Assets/Equity decreased to 1.18 from 1.24.

 

3. CEVA Inc. (CEVA, Earnings, Analysts, Financials): Engages in designing and licensing silicon intellectual property (SIP) for the handsets, portable multimedia, and consumer electronics markets. Market cap of $661.43M. The company's earnings per share have grown by 48.73% over the last five years, and Wall Street analysts project the company's earnings to grow by 29.59% over the next five years. MRQ Net Profit Margin increased to 33.20% from 28.0% year-over-year, Sales/Assets increased to 0.07 from 0.06, while Assets/Equity decreased to 1.09 from 1.11.

 

4. Questcor Pharmaceuticals, Inc. (QCOR, Earnings, Analysts, Financials): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap of $2.70B. The company's earnings per share have grown by 41.64% over the last five years, and Wall Street analysts project the company's earnings to grow by 42.25% over the next five years. MRQ Net Profit Margin increased to 38.20% from 36.84% year-over-year, Sales/Assets increased to 0.27 from 0.21, while Assets/Equity decreased to 1.27 from 1.32.

 

5. Rackspace Hosting, Inc. (RAX, Earnings, Analysts, Financials): Operates in the hosting and cloud computing industry. Market cap of $5.66B. The company's earnings per share have grown by 26.3% over the last five years, and Wall Street analysts project the company's earnings to grow by 30.3% over the next five years. MRQ Net Profit Margin increased to 7.55% from 5.91% year-over-year, Sales/Assets increased to 0.27 from 0.26, while Assets/Equity decreased to 1.76 from 1.84.

 

6. DXP Enterprises, Inc. (DXPE, Earnings, Analysts, Financials): Distributes maintenance, repair, and operating products (mro), equipment, and services to industrial customers in the U. Market cap of $423.28M. The company's earnings per share have grown by 22.78% over the last five years, and Wall Street analysts project the company's earnings to grow by 25.8% over the next five years. MRQ Net Profit Margin increased to 3.98% from 3.10% year-over-year, Sales/Assets increased to 0.61 from 0.56, while Assets/Equity decreased to 2.33 from 2.69.

 

7. AGCO Corporation (AGCO, Earnings, Analysts, Financials): Distributes agricultural equipment and related replacement parts worldwide. Market cap of $4.46B. The company's earnings per share have grown by 45.7% over the last five years, and Wall Street analysts project the company's earnings to grow by 21.73% over the next five years. MRQ Net Profit Margin increased to 4.02% from 3.76% year-over-year, Sales/Assets increased to 0.37 from 0.32, while Assets/Equity decreased to 2.01 from 2.07.

 

8. Gartner Inc. (IT, Earnings, Analysts, Financials): Provides independent and objective research and analysis on information technology (IT), computer hardware, software, communications, and related technology industries. Market cap of $3.58B. The company's earnings per share have grown by 20.87% over the last five years, and Wall Street analysts project the company's earnings to grow by 22.78% over the next five years. MRQ Net Profit Margin increased to 8.81% from 6.78% year-over-year, Sales/Assets increased to 0.27 from 0.24, while Assets/Equity decreased to 6.72 from 8.02.

 

9. OSI Systems, Inc. (OSIS, Earnings, Analysts, Financials): Designs, manufactures, and sells specialized electronic systems and components for applications in homeland security, healthcare, defense, and aerospace markets worldwide. Market cap of $936.32M. The company's earnings per share have grown by 20.65% over the last five years, and Wall Street analysts project the company's earnings to grow by 24.83% over the next five years. MRQ Net Profit Margin increased to 2.95% from 2.64% year-over-year, Sales/Assets increased to 0.27 from 0.25, while Assets/Equity decreased to 1.54 from 1.56.

 

10. Standard Motor Products Inc. (SMP, Earnings, Analysts, Financials): Distributes replacement parts for motor vehicles in the automotive aftermarket industry primarily in the United States, Canada, and Latin America. Market cap of $453.96M. The company's earnings per share have grown by 28.03% over the last five years, and Wall Street analysts project the company's earnings to grow by 21.3% over the next five years. MRQ Net Profit Margin increased to 5.52% from 4.25% year-over-year, Sales/Assets increased to 0.45 from 0.41, while Assets/Equity decreased to 2.16 from 2.66.

 

 

(Written by Rebecca Lipman. ROE data sourced from Google Finance. All other data sourced from Finviz.)

 

Use Kapitall's Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data…

 

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member. 

playthemarket640jpg

Leave a Reply

Protected by WP Anti Spam

playthemarket280jpg