What do Facebook (FB), Amazon.com (AMZN) and Netflix (NFLX) have in common besides being so-called FANG stocks? Along with Nvidia (NVDA) and RingCentral (RNG), they all earned a spot on the latest list of today’s fastest-growing companies. The biggest stock market winners tend to have exceptional earnings growth, and the list below highlights companies like Facebook, Amazon, Netflix and artificial intelligence technology leader Nvidia that have posted exceptional EPS gains over the last three years.
Earning per share in company selection
Of course, while earnings per share, or EPS, growth is a crucial factor in choosing the best stocks to buy, it’s not the only one. To improve your returns and reduce risk, run each stock you’re tracking through a Buying Checklist to see how strongly it’s displaying the most important stock-picking criteria that the market’s biggest winners typically display in the early stages of a major price move.
Created with the custom screening tools in MarketSmith, this list highlights stocks with a three-year annual EPS growth rate of 50% or higher. Each stock must also have a 95 or better Composite Rating and trade at least $8 million on average per day.
On this latest list of the fastest-growing stocks, Facebook, Amazon and Netflix are joined by leading cloud stocks RingCentral, ServiceNow (NOW), Paycom Software (PAYC) and Carbonite (CARB). Facebook has been rebounding from its Cambridge Analytica scandal, and is now trading just below a 188.42 entry. The social media giant has posted average EPS growth of 74% over the last three quarters.
Amazon is also near a potential buy point at 1,617.64 in a later-stage base. Netflix, meanwhile, has just streamed into a 338.92 to 355.87 buy zone. Nvidia is trading at the upper end of its buy zone after breaking out from a double bottom earlier this month. ServiceNow, which provides cloud-based workflow automation software, is retesting a 176.66 buy point it initially cleared on May 7. Fellow enterprise software developer RingCentral has now climbed just out of buy range from a breakout earlier this month. Cloud-based data backup company Carbonite is also extended, trading around 10% above a 33.65 entry.
IBD 50 stocks that also made this list of the fastest-growing companies include Nvidia, Netflix, ZTO Express (ZTO), Supernus Pharmaceuticals (SUPN), Interactive Brokers (IBKR), The Trade Desk (TTD), SolarEdge Technologies (SEDG) and Viper Energy Partners (VNOM). Amazon, Netflix and ServiceNow have all earned a spot on the IBD Big Cap 20.
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