Are you really a growth investor?
It's worth asking. Even though talk of a growth stock rally has spread to the pages of The Wall Street Journal, investing in fast movers can be a stomach-churning experience.
Think of trendy outfitter Zumiez
- 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 Motley Fool 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 |
Bullish CAPS Ratings |
5-Year Growth Estimate |
|---|---|---|---|
|
Navios Maritime |
502 |
494 |
52.0% |
|
Superior Energy |
513 |
509 |
34.5% |
|
Inverness Medical |
85 |
82 |
25.5% |
|
PRG-Schultz |
95 |
90 |
25.0% |
|
Chordiant Software |
63 |
58 |
22.5% |
Bear in mind that this isn't a list of recommendations. Instead, I offer these stocks as candidates for further research. But of these five, it's oilfield services firm Superior Energy that interests me most.
Of course, that's easy to say when oil is tilting toward $100 a barrel. But Superior's advantages go further than rising energy prices. CAPS All-Star jester112358 explains:
It has finally dawned on the market that energy is no longer cyclical, so buy this sector while you still can. Scientists have known this for a least a decade, but no one ever listens to us! The low P/Es in this sector are unbelievable, giving very little downside risk.
Indeed, it's the valuation that attracts me. Superior Energy's microscopic 0.30 PEG ratio, as well as a massive stock buyback, suggests that there's plenty of upside still to be had for investors who buy now.
Intrigued? Do your own due diligence and then check in with thousands of other investors at CAPS. And, if you'd like, add your own commentary. You'll be helping your fellow Fools and testing your ideas at the same time. Click here to get started now; the service is 100% free.
See you back here next week for five more top growth stocks.
