Growth Stocks with Pop
These 13 companies are steady growers, and we think they're cheap.
The past few years have been like quicksand for many growth companies. Cisco (CSCO), Yahoo (YHOO), and even old-dependable General Electric (GE) have posted declining sales in at least one of the past four quarters.
Given this weak environment for corporate sales and profits, which companies have bucked the trend and been able to keep growing? Using Morningstar's Premium Stock Selector, we put together a screen to search for these resilient firms. (Morningstar.com's Premium Stock Selector tool is a feature of Premium Membership. If you're not a Premium Member, sign up for a free, 14-day trial.)
First of all, we required each company to have posted sales and earnings-per-share growth in each of the past four quarters (compared with the same quarter a year earlier). Only 5% of our stock universe passed these criteria, which goes to show how tough the past year has been on corporate sales and profits. The low pass rate also reflects how many companies have taken big write-downs to correct for bloated profits during the go-go years.
Haywood Kelly, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.