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Hey, if you are looking for a new trade, look no further than these three monster stocks. All have pass through my 29 proprietary filters for strong growth, reasonable valuation metrics, strong corporate culture, high ethical standards, and love from the analysts. Do your own due diligence, please. What I post here is for informational and educational purposes only.
Disclaimer: I own positions in all three stocks, as do subscribers to my Trend Trade Letter.
1. Restoration Hardware (RH)
This retailer of high end home furnishings is shaking up the home decor space. The CEO is moving to dominate the space in North America, and then expand globally, making this a great long-term hold. RH grew earnings nearly 400% this year, and shares trade at a low 23x forward earnings. Its 5-year sales record shows an average annual growth of 24%. Recent pullback to the 200sma post-earnings is a buyer's dream come true:
2. VASCO Data Security International (VDSI)
I love the cyber-security thesis-trade, and this is one of my favorites among the 12 companies in that industry. The company has no debt, strong cash flow, and one of the lowest PEG ratios in the industry. It grew eps at a rate of nearly 200% this past year, with a 5-year track record of 22% annual growth. The average analyst rating for the stock is "strong buy." Shares hit a high point after announcing a huge blowout, but have since been consolidating. This is a good place to buy a starter position.
3. Carrizo Oil & Gas (CRZO)
The independent oil and gas industry is starting to get perky again with oil prices on the rise, and this is one of the best positioned companies to leverage that. Shares trade at a low 11.8 P/E on growth that is through the roof (808% this year), giving CRZO the 12 lowest PEG ratio, and the 2nd highest EPS growth rate, of the 127 stocks in the industry. The chart is just beginning to print a nice long-term breakout with nothing but blue skies overhead:
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Blessings, and happy investing! TC