Explosive Growth Stocks Already Turning a Profit

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Growth stocks can ignite your portfolio, sending its value rocketing up, up, and away at an extraordinary pace. But we all know the dangers involved in this kind of investing -- play with fire, and you might get burned.

Ideally, we want to find stocks with exceptional growth potential and a little less risk. Finding companies that are already profitable and earning a solid return on equity can help. So can companies that are highly regarded by the Motley Fool CAPS investing community. Stocks earning a five-star rating from the community have beaten the market by 12%, annualized, over the first 18 months of tracking.

With that in mind, I used our CAPS screener to pick out some fast growers that are a bit less speculative. I searched for companies that have increased revenue by more than 35% over the past three years, but also had positive earnings per share and a return on equity greater than 15% over the last 12 months.

They also have:

• A five-star CAPS rating.
• A market cap greater than $100 million.

Company	Price	3-Year Average Revenue Growth Rate	Return on Equity
Arcelor Mittal (NYSE: MT)	$79.47	83.0%	17.9%
China Medical Technologies (Nasdaq: CMED)	$53.02	63.4%	21.5%
Dawson Geophysical (Nasdaq: DWSN)	$61.42	40.3%	19.5%
Infinera (Nasdaq: INFN)	$11.44	493%	16.1%
Satyam Computer Services (NYSE: SAY)	$23.20	38.5%	23.9%
Transocean (NYSE: RIG)	$127.16	41.6%	28.9%
Vimpel Communications (NYSE: VIP)	$24.06	49.7%	27.0%

Data provided by Motley Fool CAPS as of Aug. 8, 2008.

As always, a screen is only the first step in finding a winning investment. These companies have seen outstanding revenue growth over the past few years, but there's no guarantee they will continue those recent trends. Still, this list may be a good place to start.

Looking for more ideas? Eager to discuss these? Join our 115,000-plus-member Motley Fool CAPS investing community.