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5 More Top Growth Stocks

Now that talk of a growth-stock rally has spread to the pages of The Wall Street Journal, it's time to check in on some of the funds that ought to be benefiting from the shift. This week, our subject is the Janus Fund (JANSX).

For some, Janus is the original growth fund, and for good reason. Janus (NYSE: JNS  ) founder Tom Bailey, known for prizing business quality over price, beat the S&P 500 in 10 of the 16 years he ran the fund.

Sadly, those were the good old days. Janus has lost to the S&P 500 by more than 2 percentage points annually over the past five years. Yuck.

New manager David Corkins was asked to step in last February, and he's since remodeled the portfolio with cheap growth stocks. Smart move. Morningstar shows the fund, up 9% so far, beating the index by more than 2 percentage points year-to-date.

How unsurprising. Corkins and all-star stock pickers like him know that:

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 stocks that have earned a five-star rating in CAPS and are expected to grow their earnings by at least 20% annually over the next five years. 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:


No. of CAPS Ratings

Bullish CAPS Ratings

5-Year Growth Estimate

Digimarc (NASDAQ:DMRC)




China GrenTech (NASDAQ:GRRF)








Chicago Bridge & Iron (NYSE:CBI)




Fundtech (NASDAQ:FNDT)




Source: 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 Israeli money-transfer specialist Fundtech that interests me most.

Blame the All-Stars. More than half of the CAPS investors who have rated the stock -- all bulls -- have outperformed at least 80% of the CAPS database. One of them, longtime Fool community member TheNajdorfDefens, posted a detailed valuation of Fundtech on our Liquid Lounge discussion board. Find his thesis 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 5,504 out of more than 28,500 rated investors 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 article 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.

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Tim Beyers

Tim Beyers first began writing for the Fool in 2003. Today, he's an analyst for Motley Fool Rule Breakers and Motley Fool Supernova. At, he covers disruptive ideas in technology and entertainment, though you'll most often find him writing and talking about the business of comics. Find him online at or send email to For more insights, follow Tim on Google+ and Twitter.

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5/24/2016 4:02 PM
JNS $14.88 Up +0.38 +2.62%
Janus Capital Grou… CAPS Rating: *
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DMRC $27.51 Up +0.96 +3.62%
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