This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

30 Top-Rated, Fast-Growth Stocks

Stocks in this article: VMW PCLN LULU CAT SOHU PRAA CYOU SINA

BOSTON ( The Street Ratings) -- Yesterday I wrote that stocks are cheap given the disconnect between stock yields and Treasuries. I provided a list of 20 top-yielding, top-rated companies that I would own, rather than a government bond that gives me only 2% a year.

Alas, those types of companies, such as Hershey (HSY) and Colgate (CL), might not be for everyone. Higher-quality companies (dividend-yielding, high return on equity) have outperformed the stock market this year, while high-beta companies have underperformed. Double-dip chatter, European contagion and other macro concerns have led investors to rein in the risk and opt for safer investments. (Hence, one reason Treasuries are where they are today.)

So while dividend-paying stocks are a good option, it makes sense to consider the possibilities. If investors assume more risk based on an increased level of confidence, higher-beta stocks will likely outperform. Another potential scenario is that economic conditions will deteriorate and put us into another recession. In that case, dividend-paying, safer companies would likely outperform. Whatever the case, it pays to diversify. If your entire portfolio consists of high-dividend stocks, be aware of the consequences.

Today I'm offering a more aggressive list of stocks. All are rated "buy" by TheStreet Ratings' quantitative equity model. In addition, I've looked for companies with above-average growth in revenue, earnings and EBIT; namely, greater than 25% over the past year. Also, the stocks must have positive quarter-over-quarter growth in earnings and revenue. And I've also mandated that each stock have a beta of greater than 1.

Consider these stocks to be more aggressive. I wouldn't consider these names to be speculative or uber-risky, so if you're looking for one or two stocks to help increase the beta exposure in your portfolio, these stocks would be a good start.

Some names you might expect are included in the mix -- Apple (AAPL), Priceline (PCLN - Get Report), Green Mountain Coffee (GMCR) and some you might not, such as Caterpillar (CAT - Get Report).

CAT has been a big beneficiary of infrastructure spending in emerging markets, yet has fallen due to concerns over slowing growth in Japan and China. S&P research forecasts $9.10 earnings per share in 2012, implying a forward P/E of just 9.75. The recent purchase of mining-equipment company Bucyrus has boosted profits, while synergies from the deal should lead to improved margins (based on cost savings). Our model has a $116 price target on shares of CAT, which implies the potential for 30% upside. And as a bonus, you'll also collect a nice dividend, currently 2.1%.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs