A stock's price follows its earnings, which in turn follow
its sales. A company needs only to take care of its business
for investors to profit in the long run.
With that in mind, examining companies whose revenues and
profits are rising -- and which inspire analysts' confidence
in continued future growth -- should give us a fertile field
in which to discover solid candidates for long-term
outperformance.
The roaring 20s
Below are a handful of companies that have enjoyed 20%
or more annual growth in sales and earnings over the past
three years, and for which analysts forecast total growth of
20% or more over the next two years. We'll then pair up those
predictions with the community stock research at
Motley Fool CAPS, to get an idea of which companies the
140,000-plus members think have the best chances of beating
the market over the long haul.
Company
3-Year Past Revenue Annual Growth
%
3-Year Past EPS Annual Growth%
Est. 2-Year Future EPS Growth
Est. 2-Year Future Revenue Growth
CAPS Rating
(out of 5)
Advanced Battery Technologies
(Nasdaq: ABAT)
74%
95%
94%
171%
**
China Automotive Systems
(Nasdaq: CAAS)
32%
36%
43%
46%
*****
eHealth
(Nasdaq: EHTH)
35%
70%
21%
39%
**
Google
(Nasdaq: GOOG)
35%
25%
35%
22% Continued... |