5 More Top Growth Stocks

Are you really a growth investor?

It's worth asking. Even though talk of a growth stock rally has spread to the pages of The Wall Street Journal, investing in fast movers can be a stomach-churning experience.

Yesterday offers another good example. Each of the major indexes declined heavily after disappointing earnings reports. What of the high-growth tech stocks that reported nothing? They were meaninglessly dragged down with the rest.

Witness genetic specialist Sequenom (Nasdaq: SQNM  ) , which declined more than 7% without reporting a single piece of news. Surprised? Don't be. Market panics occur daily. That's why all-star investors bet on growth over the very long term. They know that:

  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 our Motley Fool CAPS investor-intelligence database.

Specifically, we're looking for stocks that have earned a five-star rating in CAPS and which 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:

Company

No. of CAPS Ratings

Bullish CAPS Ratings

5-Year Growth Estimate

Aegean Marine Petroleum (NYSE:ANW)

85

81

42.00%

iCAD (NASDAQ:ICAD)

157

155

35.00%

Double-Take Software (NASDAQ:DBTK)

58

57

25.00%

RRSat Global Communications (NASDAQ:RRST)

90

89

21.75%

GameStop (NYSE:GME)

1,030

1,004

20.75%

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 logistics firm Aegean Marine Petroleum that interests me most. Here's how CAPS All-Star blutzed44 explains the thesis:

I really think this company has great potential for a couple of reasons ... First ... If another firm were [to] decide to compete [with Aegean Marine] in a given region they would need to make a huge capital investment and then face fierce competition ... Second, all the investments they make consist of boats and buildings. Often times these things appreciate in value and are carried on the balance sheet at their original value.

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.

Tim Beyers, who is ranked 2,438 out of more than 60,000 participants in CAPS, is a regular contributor to Fool.com and Rule Breakers. Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Find Tim's portfolio here and his latest blog commentary here. GameStop is a Stock Advisor recommendation. The Motley Fool's disclosure policy is your portfolio's competitive advantage.


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