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. Just ask investors who hold shares of Blue Nile
No matter. All-star investors bet on growth over the very long term. They know that:
- Businesses that make investors billions always begin as growth stocks.
- The best of them feature massive and identifiable competitive advantages.
- 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 is for 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:
|
Company |
No. of CAPS Ratings |
Percent Bulls |
5-Year Growth Estimate |
|---|---|---|---|
|
Omrix Biopharmaceuticals |
394 |
95.4% |
22.9% |
|
Compania de Minas Buenaventura |
724 |
97.7% |
30.1% |
|
Cresud |
451 |
96.7% |
38.1% |
|
Catalyst Health |
285 |
97.5% |
20.1% |
|
SandRidge Energy |
448 |
97.3% |
20% |
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 got some interesting companies to work with. Insiders have gone wild over SandRidge Energy. Pharmacy benefits administrator Catalyst Health is on the upswing. Johnson & Johnson
Cruddy, beautiful Cresud
My favorite today, though, is Global Gains recommendation Cresud, an Argentine food producer that has been badly hurt by a government plan to take over private pension plans.
If that sounds like a problem, it is, for all the reasons Bill Mann laid out here. The good news? Cresud's underlying business is buttressed by an excellent balance sheet. Executives have taken advantage by repurchasing shares almost daily. And with good reason, as CAPS investor MJKpayday pointed out in this pitch from December:
"Cresud's value comes from two areas: farm land (leasing and development) and food production and they do both very well. Just to put things in perspective: They've got about 1M acres of land , much of it farmland and there market cap is about 432M so that's about $432 an acre. In Iowa Farm land goes for about $4,000 an acre. And on top of that they have the food production business...Looks like a good deal and worth some further investigation for a real money pick."
Today, shares of Cresud are trading at roughly the value of the cash on its books. Let me click on my megaphone here: Attention, stock shoppers ... Sale in the global growth aisle.
But that's my take. I'm more interested to know what you think. Would you buy shares of Cresud at current 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!
