Investing 101: This Year's Best Performing High Profit Companies

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(List compiled by Becca Lipman and Daniel Guttridge. Data sourced from Finviz)

To compile this list, we took a universe of companies that are more profitable than their competitors on the basis of trailing twelve month (TTM) gross, operating, and pretax margins.

We then analyzed their performance over the last year, and identified the best performing names. Additionally, all companies have a market cap over $300M.


Want clarification for these terms? You got it:

Trailing twelve months (TTM): An indication that the calculated data has come from the last twelve months. For example, if data released in July 2045 is "TTM" (ie, P/E TTM or "Trailing P/E"), this means the price and the earning-per-share data comes from the twelve-month period of August 2044 to July 2045.

TTM Gross margin: This metric that tells us the percentage of a company's revenue is left after paying all production expenses. Costs include overhead, payroll and taxation. ((revenues - cost of goods sold) / Revenue ) *100  =  Gross margin %

TTM Operating margin: This tells us the percentage remaining after all operating expenses are paid. Operating expenses include: supplies, repairs, research and development, and depreciation. (Operating Income / Net Operating Revenue) *100  = Operating Margin %

TTM Pretax margin:  A company's earnings before taxes. This incorporates all of the expenses associated with business excluding taxes. It can help to determine the overall operating efficiency of the firm. The higher the pretax margin, the more profitable the company. (Net profit before taxes / net sales) *100 = Pretax Margin

Market Capitalization (Market Cap): Market capitalization, commonly referred to as market cap, is the total market value of a company's outstanding shares. It can be thought of as a measure of company's size. It can be calculated by multiplying the number of shares by the current price of the shares.

Example, If company X has 15 million outstanding shares valued at $25 a share, the market cap would be $15M x $25 = $375M.  If Company's X's stock price rises to $30 then the new market value will be $450 Million ($15M x $30 = $450M).

Now that you're armed with information, use the list below as a starting point for your own analysis. Do you think these names will continue to remain profitable?

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

1. Green Mountain Coffee Roasters Inc. (GMCR): Processed & Packaged Goods Industry. Market cap of $14.99B. The stock has gained 220.18% over the past year. TTM Gross Margin at 37.12% vs. Industry Gross Margin at 34.72%. TTM Operating Margin at 14.13% vs. Industry Operating Margin at 12.72%. TTM Pretax Margin at 10.51% vs. Industry Pretax Margin at 9.85%. The stock is a short squeeze candidate, with a short float at 12.51% (equivalent to 5.41 days of average volume). The stock has had a couple of great days, gaining 16.45% over the last week.

2. Lululemon Athletica Inc. (LULU): Textile Clothing Industry. Market cap of $7.49B. The stock has gained 194.54% over the past year. TTM Gross Margin at 59.92% vs. Industry Gross Margin at 54.06%. TTM Operating Margin at 26.28% vs. Industry Operating Margin at 16.19%. TTM Pretax Margin at 26.73% vs. Industry Pretax Margin at 15.19%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.58). The stock has had a couple of great days, gaining 13.72% over the last week. The stock has performed poorly over the last month, losing 15.19%.

3. Select Comfort Corporation (SCSS): Home Furnishings & Fixtures Industry. Market cap of $826.97M. The stock has gained 180.80% over the past year. TTM Gross Margin at 65.16% vs. Industry Gross Margin at 38.18%. TTM Operating Margin at 10.90% vs. Industry Operating Margin at 10.03%. TTM Pretax Margin at 10.87% vs. Industry Pretax Margin at 9.34%. The stock has had a couple of great days, gaining 14.85% over the last week.

4. Sauer-Danfoss Inc. (SHS): Diversified Machinery Industry. Market cap of $1.84B. The stock has gained 135.27% over the past year. TTM Gross Margin at 37.27% vs. Industry Gross Margin at 32.63%. TTM Operating Margin at 19.11% vs. Industry Operating Margin at 12.24%. TTM Pretax Margin at 16.93% vs. Industry Pretax Margin at 10.62%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.12). The stock has had a couple of great days, gaining 10.88% over the last week.

5. CEVA Inc. (CEVA): Semiconductor Industry. Market cap of $641.12M. The stock has gained 118.41% over the past year. TTM Gross Margin at 93.53% vs. Industry Gross Margin at 60.85%. TTM Operating Margin at 28.17% vs. Industry Operating Margin at 26.78%. TTM Pretax Margin at 32.42% vs. Industry Pretax Margin at 26.71%. The stock is a short squeeze candidate, with a short float at 11.23% (equivalent to 8.81 days of average volume). The stock has had a couple of great days, gaining 14.54% over the last week. The stock has performed poorly over the last month, losing 11.69%.

6. Buckeye Technologies Inc. (BKI): Paper & Paper Products Industry. Market cap of $1.03B. The stock has gained 117.23% over the past year. TTM Gross Margin at 26.93% vs. Industry Gross Margin at 23.58%. TTM Operating Margin at 15.47% vs. Industry Operating Margin at 8.17%. TTM Pretax Margin at 12.82% vs. Industry Pretax Margin at 8.27%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.5). The stock has had a couple of great days, gaining 7.89% over the last week.

7. Rosetta Resources, Inc. (ROSE): Independent Oil & Gas Industry. Market cap of $2.30B. The stock has gained 113.86% over the past year. TTM Gross Margin at 65.10% vs. Industry Gross Margin at 32.67%. TTM Operating Margin at 29.57% vs. Industry Operating Margin at 14.96%. TTM Pretax Margin at 21.71% vs. Industry Pretax Margin at 15.78%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.04). The stock is a short squeeze candidate, with a short float at 15.% (equivalent to 6.57 days of average volume). The stock has performed poorly over the last month, losing 16.9%.

8. EV Energy Partners LP (EVEP): Oil & Gas Drilling & Exploration Industry. Market cap of $2.25B. The stock has gained 110.65% over the past year. TTM Gross Margin at 65.26% vs. Industry Gross Margin at 32.81%. TTM Operating Margin at 18.01% vs. Industry Operating Margin at 15.01%. TTM Pretax Margin at 22.21% vs. Industry Pretax Margin at 15.79%. Exhibiting strong upside momentum--currently trading 5.6% above its SMA20, 12.94% above its SMA50, and 38.21% above its SMA200. The stock has gained 110.65% over the last year.

9. Weight Watchers International, Inc. (WTW): Personal Services Industry. Market cap of $4.41B. The stock has gained 107.98% over the past year. TTM Gross Margin at 57.68% vs. Industry Gross Margin at 53.47%. TTM Operating Margin at 28.88% vs. Industry Operating Margin at 21.87%. TTM Pretax Margin at 24.31% vs. Industry Pretax Margin at 18.46%. The stock has performed poorly over the last month, losing 20.06%.

10. athenahealth, Inc. (ATHN): Business Services Industry. Market cap of $2.02B. The stock has gained 107.29% over the past year. TTM Gross Margin at 63.11% vs. Industry Gross Margin at 45.08%. TTM Operating Margin at 12.54% vs. Industry Operating Margin at 12.47%. TTM Pretax Margin at 12.45% vs. Industry Pretax Margin at 9.73%. The stock is a short squeeze candidate, with a short float at 18.2% (equivalent to 11.21 days of average volume). The stock has had a couple of great days, gaining 16.13% over the last week.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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