Are you really a growth investor?

It's worth asking. Fast-moving tech stocks have taken a beating since last November, leading to a slew of bargains for those with the guts to buy.

No surprises there. Market panics occur daily. Just ask investors who hold shares of SuccessFactors (Nasdaq: SFSF), which yesterday fell more than 5% on no news whatsoever. Sheesh.

That's why all-star investors bet on growth over the very long term. They know that:

  1. Businesses that make investors billions always begin as growth stocks.
  2. The best of them feature massive and identifiable competitive advantages.
  3. 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. The community as a whole believes that five-star stocks will outperform the S&P 500.

Let's have the list
Now, with that preamble behind us, here are five more top growth stocks:


No. of CAPS Ratings

Percent Bulls

5-Year Growth Estimate

Titanium Metals (NYSE: TIE)




Alvarion (Nasdaq: ALVR)




Marvell Technology (Nasdaq: MRVL)




Globecomm Systems (Nasdaq: GCOM)




Sykes Enterprises (Nasdaq: SYKE)




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 have some cheap growers to work with. Alvarion, for example, trades for just two times revenue -- hardly more than it did before reporting strong first-quarter results this week, and well below what Cisco (Nasdaq: CSCO) paid to acquire Alvarion peer Navini Networks last year.

Marvel at Marvell
One of the great truths of growth investing that we've profited from in Rule Breakers is that winners tend to keep on winning. Thus, when we find one, we'll often re-up the recommendation to enhance returns. (The strategy works; we're up more than 10% on the broader market as of this writing.)

Chipmaker Marvell Technology isn't a Rule Breakers recommendation like Alvarion. But it is winning. Fourth-quarter earnings blew the market away, and CAPS investors such as ironringer expect the streak to continue. Quoting:

I work in tech, a networking gear company. There I was, plugging an off-the-shelf card into the project I'm working on and notice all the chips with stylized Ms on them. Marvell sells parts, lots of them, and will for a long time.

Analysts give Marvell a 0.80 PEG ratio based on 2008 earnings projections. Peers STMicroelectronics and Texas Instruments come in well above that at 1.49 and 1.09, respectively. Three good companies, to be sure. But, all else being equal, I'd rather buy the bargain.

What about you? Would you buy Marvell 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!