A stock's price follows its earnings, which in turn follow its sales. A company needs only to take care of its business for investors to profit in the long run.
With that in mind, examining companies whose revenues and profits are rising -- and which inspire analysts' confidence in continued future growth -- should give us a fertile field in which to discover solid candidates for long-term outperformance.
The roaring 20s Below are a handful of companies that have enjoyed 20% or more annual growth in sales and earnings over the past three years, and for which analysts forecast total growth of 20% or more over the next two years. We'll then pair up those predictions with the community stock research at Motley Fool CAPS, to get an idea of which companies the 140,000-plus members think have the best chances of beating the market over the long haul.
Company
3-Year Past Revenue Annual Growth %
3-Year Past EPS Annual Growth%
Est. 2-Year Future EPS Growth
Est. 2-Year Future Revenue Growth
CAPS Rating (out of 5)
Advanced Battery Technologies (Nasdaq: ABAT)
74%
95%
94%
171%
**
China Automotive Systems (Nasdaq: CAAS)
32%
36%
43%
46%
*****
eHealth (Nasdaq: EHTH)
35%
70%
21%
39%
Google (Nasdaq: GOOG)
25%
22% Continued...
Rich Duprey is a writer specializing in the stock market.
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