Skip to main content

Q2 Growth Report - Part 1

Today's Wall Street Journal had an article that asked the question "Can Rally Run without Revenue?" Is the revenue situation really that bad?

Let's take a quick look at some the data compiled through the Alert HQ process.

After each quarter's earnings season, I try to pull together what I am now calling the Growth Report. Part 1 compiles the list of stocks that have shown a year-over-year increase in both revenue and earnings AND a sequential quarter-over-quarter increase in both revenue and earnings. Given the severity of the economic downturn, very few companies have been able to to pull off this trick.

The following table presents a comparison of the last two quarters:


Q1-2009Q2-2009
In S&P 5002741
All stocks
218312

The number of stocks in the S&P 500 that qualify as growth leaders and have made it onto the Q2 Growth Report has grown by 50%.

Similarly, looking at the entire stock market, the number of growth leaders has almost doubled in Q2 as compared to Q1.

The following chart shows the S&P 500 over the course of the last couple of years. This chart shows that in a year-over-year comparison stock prices, as well as revenues and earnings, were considerably higher than they are currently. This indicates what an accomplishment it is to have made it onto our Growth Report.


Repeat winners --

Note that there are 66 stocks that made the list in both quarters. These guys are the real growth leaders so I feel compelled to list them all here:

SymbolName
AFAMAlmost Family Inc
AIRMAir Methods Corporation
AMEDAmedisys Inc
APTALPHA PRO TECH, LTD.
ASIAAsiaInfo Holdings, Inc.
BUCYBucyrus International, Inc.
CACCCredit Acceptance Corporation
CACICACI INTERNATIONAL CLA
CFSGChina Fire & Security Group, Inc.
CMCSAComcast Corporation
CMCSKComcast Corporation
CMGCHIPOTLE MEXICAN GRILL, INC.
CNQRConcur Technologies, Inc.
CNUCONTINUCARE CORPORATION
COCOCorinthian Colleges, Inc.
CRMSALESFORCE.COM, INC.
CRNCORNELL COMPANIES, INC.
CTFOChina TransInfo Technology Corp.
CUBCUBIC CORPORATION
CYHCOMMUNITY HEALTH S. (NEW)
DGXQUEST DIAGNOSTICS INC.
DLMDEL MONTE FOODS COMPANY
EBIXEbix Inc
EBSEMERGENT BIOSOLUTIONS, INC.
EMSEMERGENCY MEDICAL SERVICES CORPORATION
ESLTElbit Systems Ltd.
FCNFTI CONSULTING, INC.
FMRFIRST MERCURY FINANCIAL CORPORATION
GTSTRIPLE-S MANAGEMENT CORP.
GXDXGenoptix, Inc.
HGRDHealth Grades, Inc.
HTSHATTERAS FINANCIAL CORP.
IDCCInterDigital, Inc.
INMDIntegraMed America, Inc.
JJSFJ & J Snack Foods Corp.
LHLABORATORY CORP. OF AMER.
LINCLincoln Educational Services Corporation
MEDMEDIFAST, INC.
MHSMEDCO HEALTH SOLUTIONS, INC.
MTRMESA ROYALTY TRUST
NHCNATIONAL HEALTHCARE CORP.
ORLYO'Reilly Automotive, Inc.
PEGAPegasystems Inc.
PSYSPsychiatric Solutions, Inc.
RAXRACKSPACE HOSTING, INC.
RGRSTURM, RUGER & COMPANY, INC.
RMDRESMED INC.
ROSTRoss Stores, Inc.
SEPSPECTRA ENERGY PARTNERS, LP
SFSTIFEL FINANCIAL CORP.
SNAKThe Inventure Group, Inc.
SQMSOCIEDAD QUIMICA Y MINERA DE CHILE SA
SRCLStericycle, Inc.
SVTSERVOTRONICS, INC.
TNDMNeutral Tandem, Inc.
TRCRTranscend Services, Inc.
TRUTORCH ENERGY ROYALTY TRUST
TSTCTelestone Technologies Corp.
TTEKTetra Tech, Inc.
TYLTYLER TECHNOLOGIES, INC.
UHTUNIVERSAL HEALTH REALTY INCOME TRUST
VITVANCEINFO TECHNOLOGIES INC
VRVALIDUS HOLDINGS, LTD.
WMSWMS INDS, INC.
WOOFVCA Antech, Inc.
YORWThe York Water Company


Conclusion --

So the Wall Street Journal has a point. It's true that cost cutting can't support rising stock prices for long; however, it's clear that slowly but surely revenues and earnings are indeed improving. There has been a significant increase in the number of stocks that are making our rather exclusive club of growth leaders. That can't be bad for the market outlook.

Click this link to download a spreadsheet that lists all the individual stocks that qualified for the Q2 Growth Report.

You may also be interested in Part 2 of the Q2 Growth Report listing those stocks that have found a way to raise their dividends despite the challenging economic backdrop.

Disclosure: no positions in stocks mentioned in this post

Comments

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Thursday Bounce: Trend Busters, Swing Signals and Trend Leaders for July 9, 2009

This is a quick post to announce that we have published Thursday's Trend Leaders, Swing Signals and Trend Busters at Alert HQ . All are based on daily data. Today we have the following: 72 Swing Signals -- A couple of days ago we had 35 signals, today we have twice as many. Happily, we now have 65 BUY signals, a mere 4 SELL Signals plus 3 Strong BUYs. Whoo-hoo! 56 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. There are 18 new stocks that made today's list and 60 that fell off Tuesday's list. 48 Trend Busters of which 5 are BUY signals and 43 are SELL signals The view from Alert HQ -- Talk about mixed signals. If you look at our Swing Signals list you would think the market was in the middle of a big bounce. BUY signals are swamping the SELL signals and we even have a few Strong BUYs. Yes, there's a good sprinkling of tech stocks and tech ETFs but the distribution is pretty broad-based with a good number of different sectors represented, eve

Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. ( Click here to read the original post ) There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position. This first post in the series starts at the beginning: getting good investment ideas. Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets. As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professional