Growth Stocks for April 2008
Small Cap Companies that Look to Experience Large Growth
Growth stocks selected in April 2008 by screening small cap companies with high projected earnings growth, good returns on equity and assets, and low debt/equity.
Any investor looking for portfolio growth should consider making small cap companies a good percentage of their portfolio. Typically, small cap companies are more volatile than large cap companies, carrying larger risks while potentially reaping greater rewards. This is why it is important to carefully research companies before investing. The following companies have been screened for several criteria focused on selecting small cap companies that look to experience spectacular growth in the coming years.
Sun Hydraulics Corp. (SNHY)
Sun Hydraulics was a March pick and grew by 34 percent in the month. The company is in the industrial equipment and components industry and has a market cap of 485.1 million. SNHY is now trading at around $29.27 a share and has one-year target of $30.3 per share. The five-year expected earnings growth rate is 24%, return on equity is 27.208, operating cash flow is 28.2 million, return on assets is 21.238, and the debt-equity ratio is 0.008.
Ceradyne Inc. (CRDN)
Ceradyne is in the industrial equipment and components industry and has a market cap of 873.3 million. CRDN is now trading at around $31.96 a share and has one-year target of $46.11 per share. The five-year expected earnings growth rate is 47%, return on equity is 29.285, operating cash flow is 152.6 million, return on assets is 19.753, and the debt-equity ratio is 0.209.
Dawson Geophysical Co. (DWSN)
Dawson Geophysical is in the oil and gas equipment and services industry and has a market cap of 517.4 million. DWSN is now trading at around $67.5 a share and has one-year target of $71.6 per share. The five-year expected earnings growth rate is 24%, return on equity is 20.84, operating cash flow is 60.7 million, return on assets is 16.629, and the debt-equity ratio is 0.032.
ICF International Inc. (ICFI)
ICF International is in the management services industry and has a market cap of 292.5 million. ICFI is now trading at around $20.05 a share and has one-year target of $29 per share. The five-year expected earnings growth rate is 15%, return on equity is 29.1, operating cash flow is 45.5 million, return on assets is 14.479, and the debt-equity ratio is 0.286.
IPG Photonics Corporation (IPGP)
IPG Photonics is in the semiconductor industry and has a market cap of 691.8 million. IPGP is now trading at around $15.7 a share and has one-year target of $24.17 per share. The five-year expected earnings growth rate is 29%, return on equity is 16.665, operating cash flow is 10.7 million, return on assets is 11.679, and the debt-equity ratio is 0.156.
Analysis
These five stocks are all undervalued as of April 2008. Each company has a strong balance sheet and plenty of room to grow within their industry. The projected growth for a portfolio consisting of equal monetary values of these five stocks is 30.5% for the coming year.
Warning: The market is never reliably predictable and investments always carry the risk of losing money. To avoid unnecessary losses, do your own research on companies before investing your own money.
Related Articles:
The Motley Fool Investment Guide
