LONDON -- For many people, the entire point of investing in shares is to find a big winner. Here is the lowdown on three companies that have grown up fast.
1. ARM Holdings (LSE:ARM) (NASDAQ:ARMH)
ARM Holdings' business model is totally different from AMD's or Intel's: ARM does not make processors, but rather licenses its designs to other manufacturers. ARM is also not interested in the desktop PC market. Its processors have always been optimized for small size, low power, and low heat output. This makes them ideal for mobile phones. ARM has dominated this market since the mid-1990s.
ARM's shares began another strong run upward following the emergence of the smartphone. Growth then took on a new phase as the tablet market took off.
With the shares trading on 40.8 times forecasts for 2014, shareholders cannot afford slip-ups.
2. ASOS (LSE:ASC)
I'm old enough to remember the days when ASOS was called As Seen On Screen and the shares changed hands for less than 10 pence. Today, shares in the company cost 2,780 pence. Chief executive Nick Robertson currently owns 10.2% of the company. At today's market capitalization, his stake is worth more than 200 million pounds.
ASOS is well on the way to becoming the world's leading pure-play online clothing retailer. For 2007, ASOS made sales of 42.6 million pounds. ASOS has since grown fast; last December, the company made total sales of 78 million pounds in just one month.
ASOS shares trade on a 2014 price-to-earnings ratio of 42.6 times forecast earnings.
3. Hargreaves Lansdown (LSE:HL)
Today, Hargreaves Lansdown is the U.K.'s shop window for savings and investment products. In the last five years, Hargreaves Lansdown has grown sales by an average of 19.3% per annum. This has produced average annual earnings-per-share growth of 25.7% a year. Dividend growth has been even stronger. In the last five years, the payout has risen 39.3% per year on average.
The company is expected to continue increasing earnings and dividends for the next two years. EPS is expected to hit 24.4 pence for 2014, with a dividend of 30.4 pence per share. That puts Hargreaves Lansdown on a 2014 P/E of 24.4, with an expected yield of 3.5%.
Hargreaves Lansdown looks like a great mix of income and growth. Analysts at The Motley Fool have prepared free reports on their picks for each of these investing strategies. Our top income pick comes with a 5.7% yield and real upside potential. Read all about this share in our free report "The Motley Fool's Top Income Share For 2013". Meanwhile, the world leader that we feature in "The Motley Fool's Top Growth Share For 2013" is fast moving into new markets while still enjoying a strong position in older industries.