Growth the Mad Money way
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Date updated:01-14-2007

In Jim Cramer's book, "Mad Money" he states that buying companies with PEG < 2 and growth better than their sector are often good buys. We did a screen for these stocks and also took into account diversification and what other funds are in the stock. PEG is the P/E ratio (Price over earnings) divided by growth. So if a company is trading for 20 times earnings and is expected to grow 20% then its expected PEG is 1.

symbol name last price % change open
  • +
  • VCLK
    Valueclick
  • $9.43
  • -2.28%
  • $9.53

107% earnings growth last year. Next year, analysts expect it to go from 58 cents in earnings to 77 cents (22 analysts predicting), giving VCLK about 33% growth and a 30 forward P/E. By comparison GOOG has about 33% anticipated growth and a 36P/E.

People owning VCLK also tend to own: AFFXCAWCHKEMYLVLOBRLERES

TheStreet.com Rating: D What is this?

  • +
  • GME
    Gamestop Corp
  • $24.41
  • 0.00%
  • $N/A

32% earnings growth anticipated for next year and a forward P/E of 21, giving it a 0.65 PEG. By comparison BBY is expected to have 14% growth and RSH is expected to have 21% growth.

People owning GME also tend to own: ADTNALGNAMLNCCMPCOCOCVDDLB

TheStreet.com Rating: C+ What is this?

  • +
  • IDSY
    I.d. Systems
  • $3.05
  • -3.72%
  • $3.16

Sells radio-frequency identification systems (RFID) for tracking industrial equipment like, for instance, forklifts. Supervisors can monitor fleets of equipment and workers reducint fleet maintenance costs, increasing safety, etc. Customers include Wal-mart, Ford, Target, and the US Postal Service. Fund manager and Forbes columnist Jim Oberweis wrote in a recent Forbes, "The company goes for 56 times earnings but analysts expect earnings to grow 86% next year...there is no reason to thank that growth will stop in 2007."

People owning IDSY also tend to own: AMTDBIDUFMCNGMCRGMEIDCCMDRX

TheStreet.com Rating: D What is this?

  • +
  • GMCR
    Green Mountain Co
  • $62.98
  • 0.00%
  • $N/A

50% earnings growth anticipated for next year. 20% revenue growth. Has exceed analyst expectations every quarter since going public 4 quarters ago. Forward P/E is 33. By comparison, SBUX is expected to have about 20% earnings growth.

People owning GMCR also tend to own: AAPLBKSCREEGOOGGPREIFSIAKAI

TheStreet.com Rating: B What is this?

  • +
  • BIDU
    Baidu
  • $433.74
  • -1.36%
  • $434.76

95 cents in earnings this year and 1.75 expected for 2007. A little over 80% earnings growth. Forward P/E of 71.

People owning BIDU also tend to own: AMATAMTAMXFMCNKRYRACKSTP

TheStreet.com Rating: B- What is this?

  • +
  • FMCN
    Focus Media Holdi
  • $12.56
  • 0.00%
  • $N/A

Electronic billboards in china. Earnings expected to grow from 1.77 to 2.61. Forward P/E of just 29.

People owning FMCN also tend to own: AMATAMTAMXBIDUKRYRACKSTP

TheStreet.com Rating: No Rating What is this?

  • +
  • AMTD
    Td Ameritrade Hol
  • $19.64
  • +1.55%
  • $19.37

Stock beaten down by the BAC offer of $0 trades. Despite this AMTD trades for only a little more than 4 times operating cash flows. 28% earnings growth expected. A Forward P/E of just 12.

People owning AMTD also tend to own: BNIGLWNBRUNHVLOACADAKN

TheStreet.com Rating: B What is this?

  • +
  • IDCC
    Interdigital
  • $23.79
  • +0.42%
  • $23.89

Just bought back 6.4mm shares for $187mm and then expaded buyback plan.

People owning IDCC also tend to own: JCOMAAPLPANLRIMMSHLDSLBBAC

TheStreet.com Rating: C+ What is this?

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