Investors who want the highest possible returns buy stocks of rapidly growing, dominant companies with sustainable competitive advantages. With that in mind, I used our new CAPS screening tool to find some potential market-beaters in the tech sector, a prime hunting ground for great growth stocks. Below you'll find five tech companies with trailing-three-year earnings growth of 25% or more.

They also have:

  • Market caps greater than $300 million.
  • At least 300 active Motley Fool CAPS picks.
  • Four- or five-star ratings from our CAPS community.

Remember, in the first year for which we have data, CAPS' four- and five-star companies outperformed the overall market with respective gains of 19% and 28%.

Company

Share Price

Market Cap
(in billions)

Trailing-3-yr annualized EPS growth

AU Optronics (NYSE:AUO)

$14.45

$12.4

40.3%

Activision (NASDAQ:ATVI)

$31.30

$9.5

36.2%

China Mobile (NYSE:CHL)

$66.05

$268.3

30.5%

Hewlett-Packard (NYSE:HPQ)

$44.24

$108.5

42.3%

Nokia (NYSE:NOK)

$24.61

$93.4

40.2%

Data from Motley Fool CAPS as of July 8, 2008.

Of course, screens are merely a first step in the stock-selection process. But it certainly pays to consider a pool of powerful growth stocks, since they are your chance to score big. Come and join us on Motley Fool CAPS to dig into these companies further. Let our 110,000-strong (and counting) CAPS community help you identify tomorrow's multibaggers.

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