Looking For Solid, Growing Companies In A Recession
By:
Davy Bui Monday, June 29, 2009 8:38 AM
In dedication to my recent posts on value investing vs. trading strategies, I decided to focus this week’s screen to the market’s favorite word: growth. Specifically, the criteria used was positive revenue growth for the next fiscal year. Of course, this does not translate to earnings growth but management teams should have figured out there’s a recession and cut the cost side.
In addition to revenue growth, we are looking for companies that can thrive in this recession and take market share. These qualities are hard to quantify but I used ROE and ROA as measures of company quality, with the added kicker of a low debt-to-capital ratio so the company theoretically will have resources to pounce on opportunities. Finally, my frugal nature will not allow me to overpay so I looked for stocks with PE ratios below 15 and PEG ratios under 1.
The screen turned up 74 stocks:
- AAON AAON, Inc.
- ACN Accenture Ltd.
- ARO Aeropostale, Inc.
- ALGN Align Technology, Inc.
- ALKS Alkermes, Inc.
- ATI Allegheny Technologies Incorporated
- ALGT Allegiant Travel Company
- EPAX Ambassadors Group, Inc.
- BIDZ BIDZ.com, Inc.
- BIG Big Lots, Inc.
- CRR CARBO Ceramics Inc.
- CF CF Industries Holdings, Inc.
- CVX Chevron Corporation
- CBEH China Bio Energy Holding Group Co., Ltd.
- CFSG China Fire & Security Group, Inc.
- CGA China Green Agriculture, Inc
- CPBY China Information Security Tech, Inc.
- CMM China Mass Media Corp. (ADR)
- CPHI China Pharma Holdings, Inc.
- COH Coach, Inc.
- GLW Corning Incorporated
- CRY CryoLife, Inc.
- DECK Deckers Outdoor Corporation
- DSGX Descartes Systems Group (USA)
- DO Diamond Offshore Drilling, Inc.
- EGMI Electronic Game Card, Inc.
- EZPW EZCORP, Inc.
- FOSL Fossil, Inc.
- FUQI Fuqi International, Inc.
- GME GameStop Corp.
- GRMN Garmin Ltd.
- GTI GrafTech International Ltd.
- GHM Graham Corporation
- SOLR GT Solar International, Inc.
- GES Guess?, Inc.
- HRBN Harbin Electric, Inc.
- HQS HQ Sustainable Maritime Industries, Inc.
- IGTE iGATE Corporation
- BLUD Immucor, Inc.
- ITI Iteris, Inc.
- ITRN Ituran Location and Control Ltd. (US)
- JCOM j2 Global Communications, Inc.
- JST Jinpan International Limited
- JOSB Jos. A.
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