Five large caps with earnings growth of 25% or more

By James Dennin for Kapitall.

A survey of the Fortune 500 by the Wall Street Journal says that United States companies are set for another big year. 

Finally breaking a trend where earnings growth was spurred by stock buy backs and cost cutting, US companies appear to be adding to revenue through increased sales at the fastest rate since 2012. 

Profits are expected to grow 7% again next quarter—matching corporate America's best performance in 2013. 

With that in mind we decided to screen for high-earning companies by looking at EPS growth, setting an upper limit to the screen of EPS growth above 25%. 

Then, to get a better idea of whether earnings growth was coming from improved sales, we screened again for stocks with encouraging inventory trends, meaning that the company is experiencing growing demand for its goods. 

When inventory decreases as a percentage of net assets, usually replaced by greater revenue, that means the company is doing a good job of managing its inventory and increasing sales. 

This screen left us with only 5 companies on our list, do you think they'll continue to outperform? Use the list below to begin your analysis and let us know what you think in the comments. 

Click on the interactive chart to view data over time. 

 

1. Micron Technology Inc. ( MU): Engages in the manufacture and marketing of semiconductor devices worldwide. Market cap at $33.29B, most recent closing price at $31.09.  

EPS This Y: 208.7%

Revenue grew by 71.79% during the most recent quarter ($3,982M vs. $2,318M y/y).

Inventory grew by 46.19% during the same time period ($2,532M vs. $1,732M y/y).

Inventory, as a percentage of current assets, decreased from 29.43% to 26.09% during the most recent quarter (comparing 13 weeks ending 2014-05-29 to 13 weeks ending 2013-05-30). 

 

 

2. SanDisk Corp. ( SNDK): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap at $20.98B, most recent closing price at $92.76.  

EPS This Y: 155.3%

Revenue grew by 10.69% during the most recent quarter ($1,634.01M vs. $1,476.26M y/y).

Inventory grew by 3.91% during the same time period ($751.68M vs. $723.4M y/y).

Inventory, as a percentage of current assets, decreased from 16.84% to 16.29% during the most recent quarter (comparing 3 months ending 2014-06-29 to 3 months ending 2013-06-30). 

 

 

3. Green Mountain Coffee Roasters Inc. ( GMCR): Engages in the specialty coffee and coffee maker business. Market cap at $19.49B, most recent closing price at $119.76.  

EPS This Y: 38.6%

Revenue grew by 9.78% during the most recent quarter ($1,103.07M vs. $1,004.79M y/y).

Inventory grew by -23.18% during the same time period ($451.12M vs. $587.28M y/y).

Inventory, as a percentage of current assets, decreased from 48.08% to 21.03% during the most recent quarter (comparing 13 weeks ending 2014-03-29 to 13 weeks ending 2013-03-30).

 

 

4. Biogen Idec Inc. ( BIIB): Develops, manufactures, and markets therapeutics in the areas of neurology, immunology, hemophilia, and oncology in the United States and internationally. Market cap at $77.89B, most recent closing price at $329.83.  

EPS This Y: 35.6%

Revenue grew by 40.5% during the most recent quarter ($2,421.45M vs. $1,723.47M y/y).

Inventory grew by 25.52% during the same time period ($715.93M vs. $570.39M y/y).

Inventory, as a percentage of current assets, decreased from 22.61% to 18.24% during the most recent quarter (comparing 3 months ending 2014-06-30 to 3 months ending 2013-06-30). 

 

 

5. Time Warner Inc. ( TWX): Operates as a media and entertainment company in the United States and internationally. Market cap at $73.92B, most recent closing price at $83.80.  

EPS This Y: 25.9%

Revenue grew by 8.73% during the most recent quarter ($7,545M vs. $6,939M y/y).

Inventory grew by -5.44% during the same time period ($1,879M vs. $1,987M y/y).

Inventory, as a percentage of current assets, decreased from 15.74% to 13.43% during the most recent quarter (comparing 3 months ending 2014-03-31 to 3 months ending 2013-03-31). 

 

(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research, all other data sourced from Finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

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