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 a good example. News of rapidly rising foreclosure rates in July sent homebuilder stocks reeling. Yet unrelated tech shares also paid a price.

Witness solar specialist SunPower (Nasdaq: SPWR  ) , which fell more than 3% yesterday on no news whatsoever. Surprised? Don't be. Market panics occur daily. That's why all-star investors bet on growth over the very long term. They know the following:

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:

Company

No. of CAPS Ratings

Bullish CAPS Ratings

5-Year Growth Estimate

Navios Maritime Holdings (NYSE:NM)

206

204

38.5%

American Dairy (NYSE:ADY)

235

233

28.0%

PDL BioPharma (NASDAQ:PDLI)

465

448

23.6%

China Fire & Security (NASDAQ:CFSG)

141

140

23.0%

United Industrial (NYSE:UIC)

110

110

20.6%

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. Of these five, it's commodities shipper Navios Maritime that interests me most.

Why? As a studious follower of relative valuation, I'm thrilled with Navios' microscopic 0.3 PEG ratio. I'm also enthralled by its business opportunity, as CAPS investor ObEgOnG describes:

[Navios] is a long-term play with very high upside. They currently control 40+ ships, with half chartered in at rates well below current Baltic Dry Index values. These rates will reset over the next 2-18 months, furthering their earnings potential as dry bulk rates continue to increase.

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.

PDL BioPharma is one of many market-beating picks in our Rule Breakers portfolio. Ask us for a 30-day free pass to learn the identities of all the stocks David Gardner and his team are investing in now. There's no obligation to subscribe.

Fool contributor Tim Beyers, who is ranked 7,385 out of more than 60,000 participants in CAPS, is a regular contributor to both 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. The Motley Fool's disclosure policy is your portfolio's competitive advantage.


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