3 Stocks Lynch Might Love

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Peter Lynch is renowned for overseeing Fidelity's prestigious Magellan Fund from 1977 to 1990. Lynch grew his assets from a paltry $18 million to more than $10 billion by the time he retired. Astoundingly, he held more than 1,000 individual stock positions, and his fund averaged an annual 29.2% return, over the course of his management.

Lynch is equally well-known for telling each person to "invest in what you know." In his acclaimed book One Up on Wall Street, he also laid out the blueprint for investing in various types of stocks. However, he did have a very distinct preference of his own. Lynch stated that fast-growing stocks "are among my favorite investments: small, aggressive new enterprises that grow at 20%-25% a year." While growth stocks can be risky, Lynch said that "one or two of these can make a career."

To identify Lynch's growth stocks, we used a stock screener to find companies with:

1.      Earnings growth greater than 10% over the past three years

2.      Revenue growth greater than 20% over the past three years

3.      Return on equity greater than 15%

4.      Inside ownership of at least 15%

You can find similar results using the Motley Fool CAPS screener. Lastly, we enlisted the intelligence of our 165,000-member-strong CAPS community, by only selecting stocks that have a minimum of three stars. These stocks certainly have the potential to be market-beating fast growers, so feel free to dig a bit deeper on your own.


Earnings Growth (3 Years)

Revenue Growth (3 Years)

Insider Ownership

CAPS Rating (out of 5)

Universal Travel Group (NYSE: UTA  )





KMG Chemicals (Nasdaq: KMGB  )




***** (Nasdaq: NTES  )





If you've got an opinion on any of these stocks, drop a comment in the box below, or come join us on CAPS, absolutely free, to learn more about these and countless other interesting stock ideas.

Fool contributor Jordan DiPietro doesn't own any shares. is a Motley Fool Rule Breakers pick. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.

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Related Tickers

10/21/2016 4:02 PM
KMG $29.11 Down -0.71 -2.38%
KMG Chemicals CAPS Rating: No stars
NTES $263.53 Down -0.97 -0.37%
NetEase CAPS Rating: ****
UTRA.DL $0.00 Down +0.00 +0.00%
Universal Travel G… CAPS Rating: **