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The CAPS Screen: 5 Tech Stocks Set to Take Off

Investors who want the highest possible returns buy stocks of rapidly growing, dominant companies with sustainable competitive advantages. It is precisely such a strategy that has netted Motley Fool Rule Breakers subscribers a 209% gain on NYSE Euronext (NYSE: NYX  ) , along with 10 other recommendations that have doubled or more so far.

With that in mind, I used our new CAPS screening tool to find some potential rule-breaking stocks in the tech sector, a prime hunting ground for great growth stocks. Below you'll find five tech companies with trailing three-year earnings growth of 25% or more.

They also have:

  • Market caps greater than $300 million
  • At least 300 active CAPS picks
  • Four- or five-star ratings from our CAPS community

Remember, in the first year for which we have data, four- and five-star companies outperformed with respective gains of 19% and 28%.

Company

Share Price

Market Cap (in billions)

Trailing 3-Year Annualized EPS Growth

Apple (Nasdaq: AAPL  )

$187.01

$164.9

54.5%

Garmin (Nasdaq: GRMN  )

$46.22

$10.0

52.1%

MEMC (NYSE: WFR  )

$69.13

$15.7

41.2%

Vimpel-Communications (NYSE: VIP  )

$36.01

$36.6

54.9%

Western Digital (NYSE: WDC  )

$36.74

$8.1

54.8%

Data from Motley Fool CAPS and Yahoo! Finance as of May 27.

Of course, screens are merely a first step in the stock selection process. But it certainly pays to consider a pool of powerful growth stocks, since they can be your chance to score big. Come and join us on Motley Fool CAPS to dig into these companies further. Let our 105,000-strong (and counting) CAPS community help you identify tomorrow's multibaggers.

For more CAPS content:

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Ilan Moscovitz is on the hunt for tomorrow's highfliers. He owns shares of Apple. NYSE Euronext is a Motley Fool Rule Breakers recommendation. Apple and Garmin are Stock Advisor selections. Garmin is also a Global Gains pick. Is it a bird? Is it a plane? No, it's the Fool's disclosure policy.


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Related Tickers

2/14/2012 4:00 PM
WDC $39.14 Up +0.97 +2.54%
Western Digital Co… CAPS Rating: ***
WFR $4.72 Down -0.57 -10.78%
MEMC Electronic Ma… CAPS Rating: ***
VIP $11.26 Up +0.01 +0.09%
Vimpel-Communicati… CAPS Rating: *****
GRMN $43.91 Down -0.04 -0.09%
Garmin CAPS Rating: **
NYX $29.46 Up +0.10 +0.34%
NYSE Euronext CAPS Rating: *****

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