Growth Ideas: Goldman Sachs Predicts Big Gains for These Companies
In a recent research note, David J. Kostin of Goldman Sachs recommends investing in the bank's "Revenue Growth" group of stocks (via Business Insider).
The group is mostly comprised of billion-dollar companies with strong forecasted earnings growth.
"In the bunch, the median revenue growth is 15% vs. 6% for the S&P, while EPS growth of 19% compares to the S&P's 14%," writes Linette Lopez of Business Insider.
To help you work through this extensive list of companies, we put together a list of the included stocks that have the highest forecasted earnings-per-share growth for 2012. Are you similarly confident in these companies' prospects?
List sorted according to projected earnings-per-share (EPS) growth next year. (Click here to access free, interactive tools to analyze these ideas.)
1. DR Horton (NYS: DHI) : Residential Construction industry with a market cap of $3.78B. EPS is expected to grow by 185.71% next year. It is a homebuilding company in the United States. It constructs and sells homes through its operating divisions in 26 states and 72 metropolitan markets of the United States, primarily under the name of D.R. Horton, America's Builder. In addition to building traditional single-family detached homes, D.R. Horton also builds attached homes, such as town homes, duplexes, triplexes, and condominiums (including some mid-rise buildings), which share common walls and roofs.
2. Noble Corp. (NYS: NE) : Oil & Gas Drilling & Exploration industry with a market cap of $9.51B. EPS is expected to grow by 120.45% next year. It is an offshore drilling contractor for the oil and gas industry. It performs contract drilling services with its fleet of 73 mobile offshore drilling units and one floating production storage and offloading unit located globally. Its drilling fleet is consists of the semisubmersibles, drillships, jackups, and submersibles.
3. Morgan Stanley (NYS: MS) : Investment Brokerage industry with a market cap of $36.42B. EPS is expected to grow by 116.54% next year. It is a global financial services firm that provides its products and services to corporations, governments, financial institutions and individuals. It operates in three segments: Institutional Securities, Global Wealth Management Group, and Asset Management.
4. Cabot Oil & Gas (NYS: COG) : Independent Oil & Gas industry with a market cap of $7.63B. EPS is expected to grow by 89.26% next year. It is engaged in the development, exploitation and exploration of oil and gas properties located in the United States. During the year ended December 31, 2010, it produced 130.6 billions of cubic feet equivalent, or 357.9 millions of cubic feet equivalent per day. During 2010, natural gas production was 125.5 billion cubic feet. During 2010, oil production was 808 thousand barrels.
5. Range Resources (NYS: RRC) : Independent Oil & Gas industry with a market cap of $10.38B. EPS is expected to grow by 67.39% next year. It is engaged in the exploration, development and acquisition of primarily natural gas and oil properties, mostly in the Appalachian and Southwestern regions of the United States. During the year ended December 31, 2010, its proved reserves consisted of 4.4 trillion cubic feet equivalent of proved reserves, 80% natural gas, 49% proved developed, 85% operated and a reserve life of 22.3 years.
6. EOG Resources (NYS: EOG) : Independent Oil & Gas industry with a market cap of $28.61B. EPS is expected to grow by 66.57% next year. It explores, develops, produces and markets natural gas and crude oil primarily in producing basins in the United States, Canada, The Republic of Trinidad and Tobago (Trinidad), the United Kingdom, and The People's Republic of China. As of December 31, 2010, its total net reserves were 1,950 million barrels of oil equivalent, of which 386 million barrels (MMBbl) were crude oil and condensate reserves, 152 MMBbl were natural gas liquids reserves and 8,470 billion cubic feet were natural gas reserves.
7. Pioneer Natural Resources (NYS: PXD) : Independent Oil & Gas industry with a market cap of $11.39B. EPS is expected to grow by 51.18% next year. It has existing operations in the United States and South Africa. It explores, develops and produces oil and gas reserves. Its asset base is anchored by the Spraberry oil field located in West Texas, the Raton gas field located in southern Colorado, the Hugoton gas field located in southwest Kansas and the West Panhandle gas field located in the Texas Panhandle.
8. Amazon.com (NAS: AMZN) : Catalog & Mail Order Houses industry with a market cap of $96.82B. EPS is expected to grow by 50.77% next year. It is a customer-centric company for consumers, sellers and enterprises. In addition, it generates revenue through other marketing and promotional services, such as online advertising, and co-branded credit card agreements. It serves consumers through its retail Websites, and focus on selection, price, and convenience. It designs its Websites to enable products to be sold by it and by third parties across dozens of product categories. It also manufactures and sells the Kindle e-reader. In February 2010, the Company acquired Touchco, a touch screen technology company.
9. Robert Half International (NYS: RHI) : Staffing & Outsourcing Services industry with a market cap of $4.12B. EPS is expected to grow by 50.50% next year. It is a provider of temporary, full-time, and project professionals in the fields of accounting and finance. OfficeTeam specializes in temporary administrative support personnel. Robert Half Technology provides information technology professionals. Robert Half Legal provides temporary, project, and full-time staffing of attorneys and specialized support personnel within law firms and corporate legal departments. The Creative Group provides project staffing in the advertising, marketing, and Web design fields. Protiviti is a global business consulting and internal audit firm.
10. Titanium Metals (NYS: TIE) : Industrial Metals & Minerals industry with a market cap of $3.35B. EPS is expected to grow by 46.88% next year. It is a producer of titanium melted and mill products. It has titanium production facilities in both the United States and Europe. Its products include titanium sponge, the basic form of titanium metal used in titanium products; melted products (ingot, electrode and slab), the result of melting titanium sponge and titanium scrap, either alone or with various alloys; mill products that are forged and rolled from ingot or slab, including long products (billet and bar), flat products (plate, sheet and strip) and pipe, and fabrications (spools, pipe fittings, manifolds, vessels) that are cut, formed, welded and assembled from titanium mill products.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Andrew Dominguez does not own any of the shares mentioned above. Data sourced from Finviz.
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