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.

Think of Rackable Systems (Nasdaq: RACK  ) , a supplier of servers and data storage systems, which suffered a 4% loss 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 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. Each week, we hunt 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'll 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. The community, on the whole, believes that five-star stocks 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)

223

216

41.0%

Navios Maritime (NYSE:NM)

309

307

38.5%

Comtech Group (NASDAQ:COGO)

334

325

29.0%

United Industrial (NYSE:UIC)

130

129

20.6%

Novatel (NASDAQ:NGPS)

194

190

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 dry bulk shipper Navios Maritime that interests me most.

Call me a copycat, but I take notice when excellent investors are buying. Here, it's Thomas Soviero, manager of Fidelity Leveraged Company Stock. Soviero has produced a 25.5% average annual return since 2004. If he's buying Navios, it's because he believes that having the stock in his portfolio will add to his market-crushing record.

But there's also an excellent business here. CAPS All-Star HellenicMaritime explains:

Navios is managed by a brilliant lady from an old Greek shipping family with vision and vast shipping experience. This company operates on a flexible trading model, and has made all the right moves to position itself as one of the leaders in the dry bulk sector ... We are aggressive buyers on any price dips.

Intrigued? Do your own due diligence, then check in with thousands of other investors at CAPS. If you 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.


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