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 |
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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