This Day On The Street
Continue to site
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

NQ Mobile Is a Hyper-Growth Opportunity

NEW YORK ( TheStreet) -- I'm going to make a case for hyper-growth stocks.

My definition for hyper-growth is a stock that Wall Street analysts project will have double-digit growth in both sales and earnings. I'll offer the premise that if rising revenue and earnings are eventually reflected in a rising share price, then I'd like a portfolio loaded with those stocks that have the highest growth in revenue and earnings.

Using stock screeners, I looked for stocks projected to increase earnings by an annual rate of 25% for the next five years that are hitting the most frequent new highs. My screening came up with NQ Mobile (NQ - Get Report), formerly NetQin Mobile, a packaged software company with a market cap of $517.08 million and sales of about $21.825 million in the last 12 months.

It describes itself as a global mobile security privacy and productivity software company co-headquartered in Beijing and Dallas and trades in ADRs.

Of course I'd expect the stock to increase faster than the general market as gauged by the Value Line Index. Sure enough, the index increased 10.79% in the last six months while NQ Mobile gained 126.30% during the same period:

Let's look at some of the other factors:

Fundamental factors: Its market cap is $517.08 million and the stock has been trading around 3.7 million shares a day recently. The stock has a P/E of 98.33.

Analysts project revenue to grow 102.7% this year and another 40.7% next year. Earnings are estimated to increase 57.6% this year, an additional 26% next year and continue to increase by 40% annually for the next five years.

Technical factors provided by Barchart: The stock has a Trend Spotter buy signal and 96% technical buy signals. It is currently trading above its 20-, 50- and 100-day moving averages and advanced 20 times in the last three months for a gain of 229.45%. Barchart computes a technical support level at 16.53 and the Relative Strength Index is 68.96%. It closed Monday at $18.53 with a 50-day moving average of 11.76.

Investor interest: Wall Street analysts issued two strong buy and two buy recommendations while institutional ownership is a low 8.7%. Only 76 individual investors on Motley Fool have given a opinion on the stock but they gave a 61% vote for it to beat the market. The short interest in growing from around two million shares in January to over 5.2 million shares recently.

Comparisons: In the last six months, NQ was up 186.23%, with Microsoft (MSFT) up 13.21%, Oracle (ORCL) down 8.70% and SAP (SAP) down 6.20%:

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NQ $5.07 0.00%
AAPL $93.62 -1.30%
FB $117.31 0.50%
GOOG $693.91 0.42%
TSLA $246.51 -0.48%


Chart of I:DJI
DOW 17,711.66 -119.10 -0.67%
S&P 500 2,070.15 -5.66 -0.27%
NASDAQ 4,794.9830 -10.3080 -0.21%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs