Double and Triple Digit EPS Growth Investing
High growth investing is all about separating winners from losers. The fact is that value investing has outperformed on average, but to find abnormally high-flying stocks you need to look at the companies that are forecasting aggressive growth.
To start your research in this area, you should begin by looking at a handful of companies that are expecting over 100% EPS growth between 2011 and 2012. These companies include names like McClatchy (MNI), Empresas ICA (ICA), Frontline (FRO) and EnerNOC (ENOC). Keep in mind that just because earnings are expected to double within a year, that does not guarantee that share prices will follow. Other factors like cooling PE ratios, potential for missed forecasts, and current valuations can raise red flags and cause prices to lag. However, these kind of stocks do have the best potential to be easy double-baggers over the next year.