If I asked you to describe the ideal company, what would you say? No, no, I'm not asking you to tick off your favorite members of the Fortune 500 or some up-and-comer small cap that you've just discovered. I want you to think about the characteristics you'd give a company if you could dream it right into existence.
Would it be in a particular industry? Would it be services or product based? Would it have fat profit margins or would it make its money by doing a huge volume?
We could spend all day going over the details of this Galatea of the business world, but I would guess that there is at least one aspect that we'd all include in our creation -- growth. All those other details are great, but how interesting can a business be if it's stagnating and lacks avenues for expansion?
Turning back to reality, I have dug up a handful of companies that actually exist and are expected to post significant growth in the years to come. These companies may not all be the picture of perfection, but I've also consulted the 135,000 members of the Motley Fool's CAPS community to get an idea of which are our best bets.
Company
Expected Long-Term Growth
TTM Price-to-Earnings Ratio
CAPS Rating (out of 5)
Activision Blizzard (Nasdaq: ATVI)
18%
NM
*****
Bed Bath & Beyond (Nasdaq: BBBY)
14%
18
**
Garmin (Nasdaq: GRMN)
13%
7
****
NYSE Euronext (NYSE: NYX)
12%
NM
***** Continued... |