An easy way to find the fastest-growing companies is to run a screen searching for issues with growing quarterly and annual earnings. A MarketSmith screen found 150 stocks making the grade, and these five stocks have bullish charts.
The screen is located in the lower-left panel under “Reports, MarketSmith Growth 250, Stocks, Fastest Growing Companies — Top 150.” It scans for companies with at least 10% earnings-per-share growth in the two most recent quarters. It then sorts by the five-year EPS growth rate.
Fastest Growing Stocks: Chip Stock Shows Robust EPS Growth
Rambus (RMBS) has an impressive 165% five-year EPS growth rate. The company posted 11% first-quarter EPS growth on top of 39% in Q4.
The chipmaker designs memory interfacing semiconductor chips, and security and architecture for AI and machine learning, automotive, data centers and government agencies.
RMBS is ranked first out of 36 stocks in the Electronics-Semiconductor Fabless group, which holds a respectable 29th place out of 197 IBD industry groups.
Hospitality Software Stock Reports Record Revenue
Agilysys (AGYS) has an equally impressive 150% five-year EPS growth rate. AGYS reported 37% and 33% EPS growth in the December and September quarters.
It released fiscal fourth-quarter earnings Tuesday after the bell, posting better-than-expected earnings amid record quarterly and annual sales numbers.
Revenue came in at $52.9 million, with full-year sales of $198.1 million. Shares are pulling back in after-hours trading.
The company makes hardware and software for the food and beverage, hospitality and leisure industries.
Dynatrace (DT) has an 81% EPS growth rate, with 39% and 22% increases in the last two quarters. DT reports fiscal fourth-quarter earnings Wednesday before the market opens.
Shares are in a cup base and are hovering 2% below the 48.10 buy point.
The Dynatrace AI-powered data and analytics platform helps align teams, automates IT cloud functions and application security in one platform.
DT is tied for the top spot out of 132 stocks in the Computer Software-Enterprise group, which is ranked 38th out the 197 groups.
Mutual funds own 75% of shares, with 1,164 funds in March, up from 1,086 in December.
Insurance Stock Sees Continued EPS Growth
Kinsale Capital Group (KNSL) earnings are growing at a 45% annual rate, with recent 50% and 48% quarterly EPS growth rates.
KNSL is in a cup base with a 337.22 buy point. Shares have been riding the 21-day exponential moving average up the side of the base.
Analysts project 30% EPS growth this year and 18% next year.
The property and casualty insurer ranks first out of 62 stocks in the Insurance-Property/Casualty/Title group.
ServiceNow (NOW) posted 35% EPS growth, with 37% and 56% quarterly rates in recent quarters.
Shares rallied more than 1% Tuesday after the company launched its AI generative Finance and Supply Chain Workflows application.
NOW is tied for the first spot with Dynatrace in the Computer Software-Enterprise group.
Mutual funds own 51% of shares, with 3,219 in March, up from 3,191 in December.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
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