Are you really a growth investor? It's a question 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 regularly. Just ask investors in Actuate
That's why 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. Each week, we hunt for the next great multibagger. But unlike David Gardner and his team at Motley Fool Rule Breakers, who scour everything from financial statements to trade magazines to clinical reports in their research, we'll 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 collective community 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 |
|---|---|---|---|
|
Tidewater |
447 |
96.2% |
57.0% |
|
Bucyrus Int'l |
318 |
97.8% |
43.0% |
|
Health Grades |
317 |
97.2% |
27.5% |
|
Core Laboratories |
341 |
97.4% |
25.0% |
|
China Mobile |
2,469 |
97.1% |
20.9% |
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.
I could be like every other writer on the planet and swoon over China Mobile, a company that appears to have a chokehold on the burgeoning wireless market in the Sino Superpower. But that's too obvious.
Off the deep end?
Not so with offshore drilling services specialist Tidewater, which maintains a fleet of nearly 460 vessels designed to aid oil and natural gas explorers. From the company website:
Collectively, the boats ... transport people, equipment and supplies between mainland locations and various offshore installations. They also tow and position mobile drilling rigs, assist in a variety of offshore construction projects and aid in a number of specialty services, including cable-laying and three-dimensional-seismic work.
There's more, but you get the point. When oil and gas explorers set up shop offshore, Tidewater is often there to help. According to one source, more than 6,000 platforms operate worldwide today.
That's the macro story, which I find extremely compelling. But the micro story is just as intriguing. Here's how CAPS investor rodinsc put it last week:
Lowest valuation in years. A little above book value, even with the huge price rise in their cargo. Minimal debt. The demand for shipping vessels is more than the supply. It takes a long time to bring new vessels online so this will drive up rates. Share buybacks after share buybacks.
I'll add that, if analysts' growth projections are accurate, I think that Tidewater is selling for about 50% of what it's really worth. Talk about tempting.
But that's my take. What's yours? Would you buy Tidewater 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!
