The fastest, strongest earnings and sales growth tends to come from smaller-capitalization, younger firms. It’s not uncommon for the young guns to pull off triple-digit growth rates. However, don’t count out large-cap stocks. Apple (AAPL), Google (GOOG), and Research In Motion (RIMM) all have stellar growth rates and all have been solid performers during the current market rally.
The 10 large-cap stocks on this week’s list all have strong fundamental and technical characteristics. Investors can also get 20 big-cap leaders every Tuesday in IBD’s Big Cap 20.
The stocks in this week’s list were screened using the following criteria:
EPS, RS Rating >= 70
Acc/Dis Rating = A, B, C
Composite Rating 90 or better
Latest Qtr EPS % Chg >= 25%
3-year EPS growth rate >= 25%
Latest Qtr Sales % Chg >= 25%
3-year sales growth rate >= 25%
Market Cap >= $20 billion
Price >= $15
Avg Vol >= 200,000 shares
Within 20% of a 52-week high
Data as of market close, Thursday, Jan. 18.
* The Earnings Per Share Rating compares a company’s last two quarters and last 3-5 years of growth and stability with those of all other companies. A 90 rating means its earnings outperformed 90% of all companies’.
** The Relative Price Strength Rating that appears for each stock is calculated by comparing its price change over the past 12 months to that of all other stocks in the tables. Results are rated on a scale from 1 to 99, with 99 being best. A RS Rating of 99 is the highest possible and means the stock has outperformed 99% of all stocks in the past 12 months. An RS Rating of 1 means nearly all other issues have done better. Market leaders usually rate 80 or higher.
***The Acc/Dis Rating uses a price and volume formula to determine if a stock is under accumulation (buying) or distribution (selling) in the last 13 weeks. A signals heavy buying; E is heavy selling.
|1.||Las Vegas Sands (LVS) - View IBD Stock Checkup|
|Composite Rating 99*. Casino and resort operator recently announced the advancement of its Hengqin International Convention and Resort project. Mutual fund ownership has risen to 173 funds from 137 three quarters ago. 3-year EPS growth rate: 111%|
|2.||Goldman Sachs (GS) - View IBD Stock Checkup|
|Composite Rating 99. The investment banker is pulling back after recent all-time highs. Its private equity arm recently agreed to buy insurance broker USI Holdings for $993 million. 3-year EPS growth rate: 45%|
|3.||Infosys Technologies (INFY) - View IBD Stock Checkup|
|Composite Rating 99. Indian IT services firm’s Q3 earnings jumped 50% to 39 cents a share. Banc of America Securities upgrades stock to buy from neutral. 3-year EPS growth rate: 40%|
|4.||Wipro Ltd. (WIT) - View IBD Stock Checkup|
|Composite Rating 99. Indian consulting firm said fiscal third-quarter profit jumped 50% to 12 cents a share. Sales growth rose 49%, the most in eight quarters. 3-year EPS growth rate: 39%|
|5.||Research In Motion (RIMM) - View IBD Stock Checkup|
|Composite Rating 98. Mutual fund ownership of the BlackBerry device maker rises to 292 funds from 264 three quarters ago. 3-year EPS growth rate: 115%|
|6.||Google (GOOG) - View IBD Stock Checkup|
|Composite Rating 98. Internet search giant will report earnings on Jan. 31. Analysts see profit rising 88% to $2.90 a share. 3-year EPS growth rate: 105%|
|7.||American Movil (AMX) - View IBD Stock Checkup|
|Composite Rating 97. Deutsche Securities upgrades Mexican wireless service provider to buy from hold. 3-year EPS growth rate: 115%|
|8.||Company Vale Do Rio (RIO) - View IBD Stock Checkup|
|Composite Rating 96. Brazilian mining firm is world’s largest iron ore producer. Owns a return on equity of 52%. 3-year EPS growth rate: 63%|
|9.||Lehman Brothers (LEH) - View IBD Stock Checkup|
|Composite Rating 96. Investment banker agreed to buy Australia’s Grange Securities for undisclosed sum. Planning Asian expansion. 3-year EPS growth rate: 27%|
|10.||Mittal Steel (MT) - View IBD Stock Checkup|
|Composite Rating 92. Steel producer’s earnings growth rebounded sharply after five quarters of declining growth. 3-year EPS growth rate: 33%|