Growth Stocks for February 2008
Small Cap Companies that Look to Experience Large Growth
Growth stocks selected in February 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.
Comtech Group Inc. (COGO)
Comtech is in the diversified machinery industry and has a market cap of $422.5 million. COGO is now trading at around $11 a share and has one-year target of $23 per share. The five-year expected growth is 26%, return on equity is 14.127, operating cash flow is 15.2 million, return on assets is 6.681, and the debt-equity ratio is 0.005.
Gulf Island Fabrication Inc. (GIFI)
Gulf Island is in the oil and gas drilling and exploration industry and has a market cap of $412.6 million. GIFI is now trading at around $31 a share and has one-year target of $38 per share. The five-year expected growth is 26%, return on equity is 12.496, operating cash flow is $26.5 million, return on assets is 8.31, and the debt-equity ratio is 0.05.
Hardinge Inc. (HDNG)
Hardinge is in the machine tools and accessories industry and has a market cap of $117.6 million. HDNG is now trading at around $16 a share and has one-year target of $27 per share. The five-year expected growth is 30%, return on equity is 11.1, operating cash flow is $4.4 million, return on assets is 5.438, and the debt-equity ratio is 0.188.
Landec Corp. (LNDC)
Landec is in the synthetics industry and has a market cap of $240.3 million. LNDC is now trading at around $9.5 a share and has one-year target of $18.33 per share. The five-year expected growth is 27.5%, return on equity is 37.712, operating cash flow is $9.7 million, return on assets is 7.343, and the debt-equity ratio is 0.002.
Tutogen Medical Inc. (TTG)
Tutogen is in the synthetics industry and has a market cap of 198.3 million. TTG is now trading at around $10.5 a share and has one-year target of $13 per share. The five-year expected growth is 35%, return on equity is 17.81, operating cash flow is $1.7 million, return on assets is 7.074, and the debt-equity ratio is 0.116.
Analysis
These five stocks are all undervalued as of February 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 63% 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.
Growth Stocks for March 2008
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