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Q3-2009 Growth Report - Part 1


The third quarter earnings season is about over. It's time to take stock (no pun intended, well, maybe it was).

After each quarter's earnings season, I try to pull together what I call 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 perception that the economic downturn is easing, it will be interesting to see how many companies have been able to to pull off this trick.

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


Q1-2009
Q2-2009
Q3-2009
In S&P 500
27
41
39
All stocks
218
312
281

The number of stocks in the S&P 500 that qualified as growth leaders and made it onto the Q2 Growth Report grew by 50% over the first quarter. Comparisons, however, are becoming more difficult. In Q3, we are actually seeing a small decrease is the number of growth leaders as compared to Q2.

Repeat winners --

There are 33 stocks that managed to make the list in all three quarters this year. These stocks are not only growth leaders they are truly consistent growth leaders during difficult economic times. Here's the list :

Symbol
Name
AIRM
Air Methods Corporation
AMED
Amedisys Inc
APT
ALPHA PRO TECH, LTD.
ASIA
AsiaInfo Holdings, Inc.
CACC
Credit Acceptance Corporation
CNU
CONTINUCARE CORPORATION
COCO
Corinthian Colleges, Inc.
CRM
SALESFORCE.COM, INC.
CRN
CORNELL COMPANIES, INC.
CTFO
China TransInfo Technology Corp.
CUB
CUBIC CORPORATION
EBIX
Ebix Inc
EBS
EMERGENT BIOSOLUTIONS, INC.
FMR
FIRST MERCURY FINANCIAL CORPORATION
GTS
TRIPLE-S MANAGEMENT CORP.
HTS
HATTERAS FINANCIAL CORP.
IDCC
InterDigital, Inc.
INMD
IntegraMed America, Inc.
LINC
Lincoln Educational Services Corporation
MED
MEDIFAST, INC.
NHC
NATIONAL HEALTHCARE CORP.
ORLY
O'Reilly Automotive, Inc.
ROST
Ross Stores, Inc.
SEP
SPECTRA ENERGY PARTNERS, LP
SF
STIFEL FINANCIAL CORP.
SQM
SOCIEDAD QUIMICA Y MINERA DE CHILE SA
SVT
SERVOTRONICS, INC.
TNDM
Neutral Tandem, Inc.
TRU
TORCH ENERGY ROYALTY TRUST
TSTC
Telestone Technologies Corp.
TYL
TYLER TECHNOLOGIES, INC.
VIT
VANCEINFO TECHNOLOGIES INC
YORW
The York Water Company

Interestingly, this is exactly half as many stocks as we saw when combining Q1 and Q2.

Conclusion --

Even as many companies beat earnings estimates this quarter, there was still much concern over the fact that revenues were not growing as fast as many analysts had hoped. Again, cost cutting helped many companies achieved their profitable results. Our results seem to bear this out -  there was no increase in the number of stocks that registered sequential and year-over-year increases in revenues and earnings. Indeed, the numbers decreased a litlle.

This makes the achievement of the stocks that did register strong results all the more remarkable.
You can click this link to download a spreadsheet that lists all the individual stocks that qualified for the Q3 Growth Report.

Stay tuned for Part 2 of the Q3 Growth Report where we discuss the those stocks that raised their dividends in the last quarter.

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