5 More Top Growth Stocks

I'll bet that if you asked 1,000 people to name the next ultimate growth stock, Radio Shack (NYSE: RSH  ) wouldn't even come close to making the list.

But don't tell that to Standard & Poor's. According to S&P data, the granddaddy of electronics retailers beat all other growth stocks during the first quarter with a 61% gain. Goodyear Tire & Rubber (NYSE: GT  ) , meanwhile, was the top gainer among S&P's value crowd with a 49% gain.

Will growth continue to lead the rally? Many observers think so. And another, Jeremy Grantham of money manager GMO, thinks value, which has pummeled growth for seven straight years, is due for a losing streak. As he told Forbes in a recent interview, "The last time one market segment won this consistently was growth's final run from 1999 into early 2000. And we don't have to tell you how that party ended."

True, but don't invest in growth stocks because they're temporarily in favor. Buy the fast movers for the same reasons that the All-Stars do:

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 our Motley Fool CAPS investor intelligence database.

Specifically, we're looking for growth stocks 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:

Company

No. of CAPS ratings

Bullish CAPS ratings

5-year growth est.

Harmony Gold (NYSE:HMY)

45

40

38.6%

VASCO Data Security (NASDAQ:VDSI)

268

260

32.5%

Anika Therapeutics (NASDAQ:ANIK)

71

71

30.0%

Chicago Bridge & Iron (NYSE:CBI)

67

64

26.8%

U.S. Concrete (NASDAQ:RMIX)

66

61

20.0%

Sources: Motley Fool CAPS, Yahoo! Finance.

Bear in mind that this isn't a list of recommendations. Instead, I offer these stocks as candidates for further research. But of these five, it's construction materials maker U.S. Concrete that interests me most.

Why? Blame the All-Stars. Of the 71 amateur and professional investors who have rated the stock, 29 -- or 41% -- have compiled portfolios that rank in the top 20% of the entire database. Perhaps they're captivated by U.S. Concrete's miniscule 0.70 PEG ratio, which suggests a significant discount to fair value?

Perhaps. But in stocks, as in life, there are no guarantees. So 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 1,426 out of more than 25,400 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.


Read/Post Comments (0) | Recommend This Article (39)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 525061, ~/Articles/ArticleHandler.aspx, 8/28/2014 7:23:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement