Zibelli likes Polypore International ( PPO), which makes membranes that are essential for lithium batteries. The batteries are being used increasingly for cameras and small consumer electronics products. In the first quarter, sales increased 28%, compared to the period a year ago, while earnings jumped 77%. The big growth opportunity is in electric cars, says Zibelli. "The company's products will be included in electric vehicles that will be rolled out around the globe in the next few years," he says.

Zibelli also owns HMS Holdings ( HMSY), which helps state agencies reduce Medicaid costs by spotting invalid insurance claims. As Medicaid programs have grown relentlessly, the company's sales and earnings have climbed.

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Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.

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