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 CAPSto 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
Atwood Oceanics (NYSE: ATW)
37%
57%
22%
22%
*****
Hudson City Bancorp (Nasdaq:
HCBK)
21%
25%
32%
49%
****
NCI (Nasdaq: NCIT)
30%
46%
39%
32%
***
Ralcorp (NYSE: RAH)
28%
27%
39%
45% Continued... |