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. Potash Corp. of Saskatchewan
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 it’s a great resource for separating the Jessica Albas from the Jabba the Hutts. 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 you like Potash Corp., then chances are you'll be a fan of Mosaic
For a directionally challenged chap like myself, Garmin
The solar cells that Trina Solar
Though Turkey may not be part of the nice, neat "BRIC" acronym (it stands for Brazil, Russia, India, China), few economists would leave it off a list of emerging markets to watch. As with any emerging economy, there's the potential for instability in Turkey, but growth has been robust -- between 2002 and 2007, annual GDP growth averaged 7.4%. For Turkcell
A lot of people are understandably underwhelmed by the idea of investing in real estate right now, but Vornado Realty Trust
The envelope, please ...
For CAPS members, the real-estate stigma was just too much for Vornado to overcome, and it's stuck with the dreaded one-star rating. Trina Solar and Mosaic ended up with two- and three-star ratings, respectively -- better than Vornado, but still low on the CAPS totem pole.
As for Garmin, its four-star rating says that this is definitely a stock worth a hard look, but it just didn't have enough of a fan base to top this week's top growth stock, Turkcell. CAPS members have been highly positive on Turkcell, with more than 97% of the members that have rated it giving it an outperform rating. CAPS All-Star Bobist chimed in back in early 2007, saying:
The largest cell phone provider in Turkey. I'm taking a bit of a chance on this, but Turkey's political and economic future look more stable than it's recent past. Based on a recent visit the place seems to be booming and yet not all that many people had a cell phone stuck in their ear. I think more Turks will go wireless over the next few years and [Turkcell] will be their provider.
Now go vote!
Do you think Turkcell 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:
Turkcell and Garmin are Motley Fool Global Gains selections. Suntech Power is a Motley Fool Rule Breakers pick. Garmin is also a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days.
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.