Investors are always hunting for the next big stock -- the dream stock whose price increases several times over when the market finally discovers it. It's easy to look back and discover the 10 best stocks of the past decade. But I'm more interested in the tools that can help me evaluate tomorrow's greatest companies.
Motley Fool CAPS offers a variety of resources to aid Fools in finding tomorrow's leaders. Our 145,000-member community is full of investors helping each other beat the market.
We'll enlist CAPS to screen for high-growth companies, then get the story behind some of its more highly rated stocks. CAPS' nifty screener will help us find stocks with:
Then we'll tap the collective intelligence of our CAPS members to see whether these companies present real opportunities -- or whether the numbers fail to tell the true story.
Opinions with the numbers
Below is a sample of stocks our screen returned.
|
Company
|
Revenue Growth Rate,
Past 3 Years
|
EPS Growth Rate,
Past 3 Years
|
CAPS Rating
(out of 5)
|
|
Zhongpin (Nasdaq: HOGS )
|
69.2 %
|
54.2%
|
*****
|
|
Atwood Oceanics (NYSE: ATW )
|
28.7%
|
42.7%
|
*****
|
|
China Yuchai (NYSE: CYD )
|
29.2%
|
80.9%
|
***
|
Data and star rankings from CAPS as of Jan. 15.
Zhongpin
Chinese food-processing company Zhongpin has been benefiting from the high demand for pork products in China, which has helped it grow revenue and earnings at a fast pace. It's looking to keep the momentum going by continuing with its growth plan of aggressive marketing, expanding distribution channels, and developing new markets. The company is banking on the government's continued economic support for the economy and agricultural producers to meet its fiscal 2010 guidance, which could put the company in trouble if the government slows its aggressive programs.
But many CAPS members like China's taste for pork and look for Zhongpin to fill the demand. When looking at the numbers in CAPS, 98% of the 870 members rating Zhongpin expect it to outperform the market.
Atwood Oceanics
Despite a tough year for all players in the offshore drilling industry, Atwood Oceanics reported its fourth consecutive year of record financials for fiscal 2009, pulling in growing revenues and earnings. The company contracts its rigs to customers such as Chevron, BHP Billiton (NYSE: BHP ) , and Hess (NYSE: HES ) , and had a revenue backlog of about $1.8 billion at the end of its fiscal fourth quarter. It has two new semisubmersibles under construction, and although it sees some uncertainties in 2010, Atwood likes the long-term outlook for the global offshore drilling industry.
Many CAPS members agree and rate it as a heavy favorite to outperform the market, with 99% of the 2,039 members rating it giving the stock a thumbs-up.
China Yuchai
In light of China's increasing infrastructure construction activity and the growth of its rural cities, China Yuchai has been positioning itself to meet the growing demand for its commercial-vehicle diesel engines. It expanded assembly capacity with a new facility in Xiamen and recently began construction of a new R&D facility. And while China's increasing demand for fuel has companies like BP (NYSE: BP ) considering increasing their presence in the country, China Yuchai recently signed a joint venture deal with Caterpillar (NYSE: CAT ) to start a diesel engine remanufacturing business.
CAPS members like the company's strong position in the Chinese market and the growth opportunities it offers. In CAPS, 90% of the 321 members rating China Yuchai expect it to outperform the market.
Let 145,000 members be the jury
The collective wisdom of a huge pool of investors can help give context to a page of numbers from a stock screen. But individual investors are still the best judges of what to do with their own money. Fools should always perform their own due diligence.
Happily, it's easy to chime in with your own opinion. If you agree that these companies present dream opportunities -- or see more of a nightmare instead -- simply scroll down and add your thoughts in the comments box.
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