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

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.

Interactive Ads - Google one-ups Yahoo again

Google's ( GOOG ) press release describing the expansion of a beta program for what are being called Gadget Ads has again shown that Google is unparalleled at melding technology and advertising to benefit its bottom line. Gadget Ads are mini-web pages or "widgets" that can be embedded within publisher pages. I have written in the past on Yahoo's ( YHOO ) Smart Ads and how, by more precisely targeting site users and adjusting ad content accordingly, they provide a much desired evolution of the banner or display ad format. Though Smart Ads and Gadget Ads are not really the same, I think it is fair to say that Google has seen the challenge of Smart Ads and has chosen to leapfrog Yahoo by rolling out its own update to the display ad format. The evolution of the Gadget Ad -- One of the trends on the Internet over the last year or so involves software developers creating "widgets" which can be hosted within web pages and blogs. Widgets can be pretty much anything