Growth Stocks for March 2008
Small Cap Companies that Look to Experience Large Growth
Growth stocks selected in March 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.
Landec Corp. (LNDC)
Landec was a February pick and has a market cap of 240.3 million. LNDC is now trading at around $9.7 a share (up from $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.
Comtech Group Inc. (COGO)
Comtech was also a February pick and has a market cap of 422.5 million. COGO is now an even better bargain trading at around $10 a share and has one-year target of $23 per share. The five-year expected growth is 25%, 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.
Sun Hydraulics Corp. (SNHY)
Sun Hydraulics is in industrial equipment and components industry and has a market cap of 371.3 million. SNHY is now trading at around $22.5 a share and has one-year target of $29 per share. The five-year expected growth is 24%, return on equity is 27.025, operating cash flow is 24.2 million, return on assets is 20.403, and the debt-equity ratio is 0.009.
American Ecology Corp. (ECOL)
American Ecology is in the waste management industry and has a market cap of 458.6 million. ECOL is now trading at around $25.3 a share and has one-year target of $26.15 per share. The five-year expected growth is 20%, return on equity is 24.795, operating cash flow is 26.1 million, return on assets is 17.449, and the debt-equity ratio is 0.
Bio-Reference Laboratories, Inc. (BRLI)
Bio-Reference Laboratories is in the medical laboratories and research industry and has a market cap of 250.4 million. BRLI is now trading at around $28 a share and has one-year target of $30.5 per share. The five-year expected growth is 19%, return on equity is 18.121, operating cash flow is 5.9 million, return on assets is 11.387, and the debt-equity ratio is 0.418.
Analysis
These five stocks are all undervalued as of March 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 52% for the coming year.
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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.
