Growth stocks are the beauties of the stock world, plain and simple. They're exciting, they have good stories, and they can make you a lot of money. Qualcomm
But for all their beauty, growth stocks are also the prima donnas of the market. They can be erratic, they don't always live up to their billing, and they tend to attract a shareholder base that's ready and willing to run at the first signs of slowdown. For those reasons, caution is certainly in order when you enter the world of growth investing.
Fortunately, The Motley Fool's CAPS service brings us the collective intelligence of a community of more than 115,000 investors, and is a great resource for separating the Jessica Albas from the Frodo Bagginses. Each of the stocks competing for this week's top spot has a market cap of at least $100 million and grew its net profit by at least 20% over the past year. So let's go ahead and meet our contestants.
If metals are your thing, then Freeport-McMoRan
What can I say about Google
Alexandria Real Estate Equities
Real estate may not whet too many investors' appetites right now, but don't count out Alexandria Real Estate Equities too quickly. This real estate investment trust (REIT) focuses on acquiring and renovating properties for the life science industry and boasts tenants like Novartis, Genentech
Tens of thousands of students get their learn on with DeVry
I have some good news for you -- you don't have to be a kid to get excited about trains. Just as they always have, rail lines like those operated by CSX
The envelope please ...
Turning to the CAPS community for a verdict, it's clear that Alexandria Real Estate, with its one-star rating, just doesn't cut the proverbial cheese. Though CAPS members don't seem overly bearish about the business, it seems that the stock's yield is just too low to make it an attractive REIT. DeVry and Google were rated somewhat better with three stars each, but neither will take home this week's crown. Which leaves us with CSX and Freeport-McMoRan.
Though CSX's four-star rating definitely makes it a stock worth your consideration, Freeport-McMoRan and its 4,000-plus bullish supporters will go home with the growth stock title for this week.
But will the growth continue? CAPS All-Star and Freeport bull saunafool thinks so. Last month he rated the stock an outperformer, saying that the "commodity boom is not over" and that Freeport is "trading at 12X earnings, 1.6% dividend yield, 20% earnings growth, and on sale in the current market turmoil."
Place your votes!
Do you think Freeport-McMoRan has what it takes to be America's next top growth stock? Head over to CAPS and let the rest of the community know what you think.
More CAPS Foolishness:
Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. The Fool's disclosure policy would surely win America's Next Top Disclosure Policy, but for some reason there's no such contest.