5 More Top Growth Stocks

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Are you really a growth investor?

It's worth asking. Fast-moving tech stocks have taken a beating recently, leading to a slew of bargains for those with the guts to buy.

No surprises there. Market panics occur daily. Just ask investors who hold shares of Motley Fool Rule Breakers recommendation Harris & Harris (Nasdaq: TINY  ) , which yesterday fell nearly 3% on no news whatsoever. Sheesh.

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 seeks the next great multibagger. But unlike David Gardner and his team at 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:


CAPS Rating (5 max)

Percent Bulls

5-Year Growth Estimate

Focus Media (Nasdaq: FMCN  )




Ceragon Networks (Nasdaq: CRNT  )




Infosys Technologies (Nasdaq: INFY  )




Atwood Oceanics (NYSE: ATW  )




China Petroleum (NYSE: SNP  )




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.

We've some great companies to work with. Infosys is the top supplier of Indian tech talent to firms here, and its stock appears to be on sale. Atwood Oceanics is one of David Gardner's better picks for Stock Advisor over the past year, and China Petroleum is a mover.

Focus for top returns
My favorite candidate today, though, is a Rule Breakers pick that fellow Fool Brian Pacampara says is poised to pop: Focus Media.

I think he's right. Focus is to Chinese consumers what Google (Nasdaq: GOOG  ) is to web searchers: a distributor of ad inventory. "It is China's leading digital ad platform, bringing a network of LED and LCD screens, posters, billboards ... to millions of sets of eyes in more than 90 cities," Foolish colleague Rick Munarriz wrote in recommending Focus Media to Rule Breakers subscribers.

Yet Mr. Market doesn't seem to care; shares of Focus Media are down more than 18% since Rick's recommendation. That's crazy. Focus trades for just 11 times forward earnings, producing what I consider an outrageously low 0.50 PEG ratio.

I'm not the only one who thinks so. In mid-July, executives announced a plan to repurchase $100 million worth of Focus Media stock. You only do that when the shares are cheap -- unless, of course, you're aiming to anger shareholders. I suspect that founder and executive chairman Jason Nanchun Jiang is smarter than that.

But I'm more interested to know what you think. Would you buy Focus Media at today's prices? Let us know by signing up for CAPS today. It's 100% free to participate.

See you back here next week with five more top growth stocks. Fool on!

Atwood Oceanics is a Stock Advisor selection. Ceragon Networks is a Hidden Gems pick. Focus Media, Google, and Harris & Harris are all Rule Breakers picks. Try any of these services free for 30 days.

Fool contributor Tim Beyers seeks the best of the tech as a contributor to Motley Fool Rule Breakers, and is ranked 20,389 out of more than 114,000 participants in CAPS. He had positions in the common shares of Harris & Harris and Google -- as well as Google's LEAP options -- at the time of publication. Get access to all of his writings here. The Motley Fool's disclosure policy is recommended by six out of seven disclosure experts surveyed.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 702867, ~/Articles/ArticleHandler.aspx, 10/26/2016 5:17:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
FMCN.DL $0.00 Down +0.00 +0.00%
Focus Media Holdin… CAPS Rating: *
ATW $8.43 Down -0.02 -0.24%
Atwood Oceanics CAPS Rating: ****
CRNT $2.66 Down +0.00 +0.00%
Ceragon Networks CAPS Rating: ***
GOOGL $822.10 Down -6.45 -0.78%
Alphabet (A shares… CAPS Rating: *****
INFY $15.62 Down -0.07 -0.45%
Infosys Technologi… CAPS Rating: *****
SNP $74.61 Down -0.92 -1.22%
China Petroleum an… CAPS Rating: **
TINY $1.29 Down +0.00 +0.00%
Harris and Harris CAPS Rating: **