5 More Top Growth Stocks

Though some all-star investors believe there's a growth stock rally underway, some are choosing to take advantage by zeroing in on particular sectors.

For example, Joe McNay, chief investment officer for growth-stock picker Essex Investment Management, recently told Barron's that his firm is seeking opportunities in industries that will blossom regardless of global economic conditions. Among his favorite stocks now are Schlumberger (NYSE:SLB) in energy and Focus Media Holdings (NASDAQ:FMCN) in tech.

Why should you care? McNay founded Essex in 1976 and has remained invested in growth stocks in the three decades since. How unsurprising. Growth leads to riches over the long haul because:

1. Businesses that make investors billions always begin as growth stocks.

2. The best of them feature massive and identifiable competitive advantages.

3. Growth as a strategy has the capacity to deliver 20% or greater annual returns for decades at a time.

How we do it
Of course, not all growth stocks will do. Our weekly hunt is for the next great multibagger. But unlike David Gardner and his team at Motley Fool Rule Breakers, who scour everything from financial statements to trade magazines to clinical reports in their research, we're going to rely on the Motley Fool CAPS investor intelligence database.

Specifically, we're looking for stocks that are expected to grow earnings by an average of at least 20% annually over the next five years and that have earned a five-star rating in CAPS. Five-star stocks are those that the community, on the whole, believes will outperform the S&P 500.

Let's have the list
Now, with that preamble behind us, here are five more top growth stocks:

Bear in mind that this isn't a list of recommendations. Instead, I offer these stocks as candidates for further research. But it's ICICI that interests me most among this list. I'll let CAPS investor PsychoDr explain the thesis:

"One of the largest banks in India. They expect to hire 40,000 people in the next year or so.... This country is still only beginning to industrialize. With more than one billion people, the fact that 60+% of the population is under 35, makes for [a] positive future in banking services. Credit card services and personal investment opportunities are expanding actively. I really like what I see here."

Intrigued? Do your own due diligence and then check in with thousands of other investors at CAPS. And, if you'd like, add your own commentary. You'll be helping your fellow Fools and testing your ideas at the same time. Click here to get started now; the service is 100% free.

See you back here next week for five more top growth stocks.

Fool contributor Tim Beyers, who is ranked 1,548 out of more than 23,800 in CAPS, is a sucker for growth stocks and a regular contributor to Rule Breakers. Tim didn't own shares in any of the companies mentioned in this story at the time of publication. All of his portfolio holdings can be found at Tim's Fool profile. His thoughts on growth stocks, Foolishness, and investing in general may be found in his blog. The Motley Fool's disclosure policy is your portfolio's competitive advantage.