Please ensure Javascript is enabled for purposes of website accessibility

5 Stocks Ready for Liftoff

By Tim Beyers - Updated Apr 5, 2017 at 8:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Might one of these be the next ultimate growth stock?

Are you really a growth investor?

It's a question worth asking. Fast-moving tech stocks have taken a beating recently, leading to a slew of bargains for those with the guts to buy. Just ask investors who hold shares of Rule Breakers recommendation iRobot (NASDAQ:IRBT), which yesterday fell more than 11% on no news whatsoever. Sheesh.

No matter. 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 seeks the next great multibagger. But unlike the Rule Breakers team, which scours 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 four or five-star rating in CAPS, and which are expected to grow their earnings by at least 20% annually over the next five years. Four and 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:


No. of CAPS Ratings

Percent Bulls

5-Year Growth Estimate

Omniture (NASDAQ:OMTR)








Cogo Group (NASDAQ:COGO)




Murphy Oil (NYSE:MUR)




American Ecology (NASDAQ:ECOL)




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've got some interesting companies to work with. Robot surgeon Accuray, like clean-up expert American Ecology, is on the upswing in CAPS land, even as peer Intuitive Surgical (NASDAQ:ISRG) is hitting low notes. Energy explorer Murphy Oil took a hike over the summer. And Cogo Group is profitable and trading for near cash.

Ogling Omniture
My favorite, however, is Stock Advisor selection Omniture, a maker of tools for measuring Web performance. Here's how CAPS investor vprtwatcher explained the thesis in October:

Recurring business model trading at low revenue multiple with 50% organic growth and prospect for huge (non-GAAP) profit margin as the customer base grows. Recognised leader in web optimisation, benefiting from long term trend towards commerce moving online. [Emphasis added.]

And in more ways than you think. Baby Breaker Twitter, for example, has helped Dell to sell $500,000 worth of refurbished computers.

To be fair, Omniture isn't helping Twitter to sell anything; Twitter is a rebellious media platform. But isn't it amazing how a finely tuned Web presence creates massive moneymaking opportunities? It certainly can't be a coincidence that Omniture has its own social media expert, Brian Watkins.

But the Web's sellers and marketers profit most from Omniture's services. Think of its wares as the tools for tuning an e-commerce engine. "Web analytics is fast becoming a core business intelligence and quality assurance tool for a growing number of businesses," Fool co-founder David Gardner wrote in his January re-recommendation. "Increasing demand will likely prove to be a long-term and durable trend, and Omniture has established the keystone position."

Agreed -- but that's my take. I'm more interested to know what you think. Would you buy Omniture at current 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!

Motley Fool Rule Breakers counts iRobot and Intuitive Surgical among its recommendations. Omniture is a Stock Advisor selection. Dell is an Inside Value pick.

Fool contributor Tim Beyers, is slowly recovering his CAPS rating. He didn't own shares in any of the companies mentioned in this article at the time of publication. Tim seeks the best of the tech as a contributor to Rule Breakers. See his  portfolio holdings and a collection of his writings. You can also follow him on Twitter, where he posts as @milehighfool. The Motley Fool posts as -- surprise! -- @TheMotleyFool. Its disclosure policy is hungry.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Omniture, Inc. Stock Quote
Omniture, Inc.
Intuitive Surgical, Inc. Stock Quote
Intuitive Surgical, Inc.
$237.85 (2.13%) $4.97
Accuray Incorporated Stock Quote
Accuray Incorporated
$2.18 (5.31%) $0.11
Murphy Oil Corporation Stock Quote
Murphy Oil Corporation
$33.82 (1.14%) $0.38
US Ecology, Inc. Stock Quote
US Ecology, Inc.
iRobot Stock Quote
$59.60 (-0.07%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.