It's hard to remember, but today's leading large-cap stocks were once just fast-growing small businesses. Years of double-digit annual sales growth turned these acorns into mighty oak trees.
And if you glance across the 600 stocks comprising the S&P's SmallCap 600Index , then you'll come across tomorrow's stars as well. Several dozen firms are in the midst of a long-term growth spurt thatwill likely have them characterized as mid-cap stocks before long. And well down the road, these stocks could be solid citizens in the S&P 500 Large Cap Index. Here are four to keep your eye on...
Risks to Consider: Strong growth begets rising expectations, so these stocks would be punished if there are any growth stumbles along the way.
Action to Take --> When identifying companies capable of sustained growth, you need to focus on those firms that are able to expand sales simply through an expansion of their current efforts. Of this group, only 3D Systems is pursuing acquisitions, but in this instance, these deals only help to expand a robust pipeline of organic growth opportunities.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
