Mad Money Growth
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average rating: 3.43 / 40 ratings
Created by Mad Money Screens
DESCRIPTION:

Date updated:01-16-2007

In Jim's book, "Mad Money", he mentions that he likes to look for growth stocks that have two criteria:

1. Stocks trading for less than 2 PEG and

2. growing earnings faster than their sector is growing.

PEG = P/E divided by growth. When PEG is low its indicative that Wall Street is not taking growth into account as much as they possibly should. In the screen below we focus on forward P/E and anticipated forward growth.

symbol name last price % change open
  • +
  • VCLK
    Valueclick
  • $10.00
  • +1.11%
  • $9.89

Online marketing company ValueClick has a forward PEG of just 1.45. They had 107% earnings growth last year. Next year: analysts expect VCLK to go from 58 cents in earnings to 77 cents with 22 analysts giving a prediction. By contrast GOOG is 33% growth expected and has a 36 P/E. VCLK 33% growth. YHOO 28% AQNT 24%. ValueClick has a forward P/E of 30.

People owning VCLK also tend to own: AFFXCAWCHKEMYLVLOBRLERES

TheStreet.com Rating: D What is this?

  • +
  • GME
    Gamestop Corp
  • $25.49
  • 0.00%
  • $N/A

32% growth expected for next year, P/E next year of 21. so 21 divided by 32 is a 0.65 PEG. By contrast, BBY is expected to grow earnings from 2.77 to 3.17 or 14% RSH from 74 to 90, 21% growth.

People owning GME also tend to own: AAPLPGSLBBRCDCEBAYEMC

TheStreet.com Rating: C+ What is this?

  • +
  • MDRX
    Allscripts-misys
  • $20.07
  • 0.00%
  • $N/A

MDRX is expected to grow earnings from 72 cents in 2006 to 1.08 for the year ending Dec 07

People owning MDRX also tend to own: AOBCOGOCRYPGELGLWGRMNGS

TheStreet.com Rating: No Rating What is this?

  • +
  • IDSY
    I.d. Systems
  • $3.20
  • -0.31%
  • $3.21

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. "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?

  • +
  • AMTD
    Td Ameritrade Hol
  • $20.91
  • -0.48%
  • $20.92

28% earnings growth expected by analysts but only a 12 forward P/E ratio. , Analysts expect the company to earn 1.12 per share in 2007, up from 87 cents.

People owning AMTD also tend to own: BNIGLWNBRUNHVLOACADAKN

TheStreet.com Rating: B What is this?

  • +
  • GMCR
    Green Mountain Co
  • $65.01
  • 0.00%
  • $N/A

50% growth expected. Analysts expect the coffee maker to make 1.61 this year, up from 1.09 in year ending Sep 2006. 20% rev growth. , exceeded expectations the past 3 quarters since going public. SBUX, by contrast, has about 20% earnings growth. GMCR has a Forward P/E of 33.

People owning GMCR also tend to own: AAPLBKSCREEGOOGGPREIFSIAKAI

TheStreet.com Rating: B What is this?

  • +
  • FMCN
    Focus Media Holdi
  • $13.10
  • -2.02%
  • $13.06

The electronic billboard company in China is expected to grow earnings from 1.77 to 2.61.

People owning FMCN also tend to own: AMATAMTAMXBIDUKRYRACKSTP

TheStreet.com Rating: No Rating What is this?

  • +
  • IDCC
    Interdigital
  • $23.56
  • +0.81%
  • $23.30

expands share buyback plan. Has already bought back 6.4mm shares for $187mm.

People owning IDCC also tend to own: JCOMAAPLPANLRIMMSHLDSLBBAC

TheStreet.com Rating: C+ What is this?

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