U.S. Asset Management

fast growing company

Fast Growing U.S. Companies
(Ranked by Sales Growth)

By David Cross, CPM®, CRPC®, CDFA®

By David Cross, CPM®, CRPC®, CDFA®

David.Cross@us-am.com

When it comes to investing, stock returns tend to be correlated to the fastest growing companies.  With this in mind, we have posted the current list of the fastest growing companies by revenue.  We try to limit the list to U.S. based companies and we screen for companies that in our view have reasonably good fundamentals.  Our stock screen currently looks like this:

        1. Market Value > $1 billion
        2. Annual Sales > $200 million
        3. Sales Growth last year > +50%
        4. Current Ratio > 1.2
        5. Number of Funds who own the stock > 200
        6. % increase in Fund ownership last quarter> 4%
        7. % off high < 15%

That screen, in plain English means this:

        1. I am looking for companies with a market value over $1 billion (because I don’t want very small companies)
        2. I want their sales to be over $200 million annually (sales this high helps me weed out biotech companies that have no sales) and
        3. I would like the sales to be up 50% or better over the last year (this helps us skip over companies who are growing by buying other companies – I prefer organic growth)
        4. I want a financially strong company with a current ratio of 1.2. That means that the company has 1.2 times as much in current assets compared to current liabilities.  Look at current assets as what you have in your checking account and inventory right now $1,200 divided by what you owe on your bills, this month $1,000. 
        5. I am looking for companies where 200 or more mutual funds or professional investors own the stock
        6. The number funds buying has increased by 4% or more in the last quarter
        7. The stock needs to be within 15% of its all-time high price (remember, we are looking for stocks that are growing and being accumulated by the professionals)

When we run the screen with these parameters, we get this list:

Source: MarketSmith

This material is of a general nature and intended for educational purposes only.  This information should not be construed as investment advice.

You may have heard of some of these companies, but many people have not because they tend to be new companies with new products or services.  This list is not a “buy list” and is not meant as recommendations by any means.  The list is simply a starting point for us to learn more about these companies to find out if they are possible investment candidates.  The next step in our process is for us to complete a fundamental analysis where we review the balance sheet, income statement and the statement of cash flows. 

Investing today requires a customized financial plan integrated with a well thought out investment approach. If you have questions about how to invest or which investments may make sense for you, schedule an appointment by clicking this link or contact us today at david.cross@us-am.com or 678-894-0697.

David Cross is a wealth advisor with U.S. Asset Management, a Registered Investment Advisor. He holds the designations of Certified Divorce Financial Analyst, Certified Retirement Planning Counselor and Certified Portfolio Manager.

US Asset Management

A Member of Advisory Services Network, LLC

Direct: 678-894-0696

david.cross@US-AM.com

www.us-am.com

1960 Satellite Blvd – Suite 2200 Duluth, GA 30097
© 2020 USAM LLC. All Rights Reserved

All views/opinions expressed in this article are solely those of the author and do not reflect the views/opinions held by Advisory Services Network LLC.  Advisory Services offered through U.S. Asset Management, a member of Advisory Services Network, LLC.

6600 Peachtree Dunwoody Rd | 600 Embassy Row | Suite 575 | Atlanta | GA | 30328

U.S. Asset Management is a fiduciary advisor offering portfolio management and financial planning services. We help clients make better decisions with their money and assist with overseeing every aspect of their financial lives.  David Cross is a Certified Portfolio Manager, Certified Divorce Financial Analyst and Certified Retirement Planning Counselor.

U.S. Asset Management and Advisory Services Network, LLC do not provide tax advice.  The tax information contained herein is general and is not exhaustive by nature.  Federal and state laws are complex and constantly changing.  You should always consult your own legal or tax professional for information concerning your individual situation.

All information contained herein is derived from sources deemed to be reliable but cannot be guaranteed.  Financial data changes rapidly.  All economic and performance data is historical and not indicative of future results.  This material is of a general nature and intended for educational purposes only.  This information does not constitute a recommendation or solicitation or offer of the purchase or sale of securities.   Indexes are unmanaged and do not incur management fees, costs, or expenses.  It is not possible to invest directly in an index.