5 World Class Growth Stocks for 2018

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Magic Recipe Spell

Highly Efficient Companies at Low Valuations
blue wand

In this spell, we take all non-financial and utility stocks with an over $1 billion market cap and rank them according to their earnings yield and return on tangible capital, taking the top 50 from the results. The resulting list gives us the stocks with the best combinations of a low valuation (earnings yield) and high quality (return on capital).

The Magic Recipe Spell was inspired by Joel Greenblatt's Magic Formula Investing strategy, and its construction is quite similar. As always, members can modify it to your liking using the Spell Caster tool!

Results for 2018-01-16

Columns are sortable. New entries have blue pip at left and are bold text.

Ticker Company Price MktCap EY ROIC 3YG Rating Rank
GILD Gilead Sciences, Inc. $80.25 105,850 19.9% -214.5% 48.4% gray dot 1
UTHR United Therapeutics Corporation $135.12 5,959 21.9% 107.8% 12.7% gray dot 2
IDCC InterDigital, Inc. $79.40 2,810 17.4% 178.6% 28.3% gray dot 3
TARO Taro Pharmaceutical Industries Ltd. $104.89 4,229 14.8% 60.9% 5.4% 4
NSP Insperity, Inc. $59.70 1,231 11.0% 104.6% 9.3% 5
SYNT Syntel, Inc $23.38 1,953 10.3% 94.4% 5.5% 6
OCLR Oclaro, Inc. $6.73 1,150 15.1% 46.5% 18.1% 7
MSGN MSG Networks Inc. Class A $21.55 1,633 11.4% 218.2% -17.5% 8
MIK Michaels Companies Inc $24.80 4,513 10.0% 80.0% 4.4% gray dot 9
SAFM Sanderson Farms, Inc. $131.86 2,954 16.8% 38.1% 6.7% 10
MSTR MicroStrategy Incorporated Class A $138.31 1,590 8.9% 117.2% -3.8% gray dot 11
HRB H&R Block, Inc. $26.63 5,567 10.1% 189.5% 0.1% gray dot 12
FL Foot Locker, Inc. $46.96 5,936 16.3% 39.4% 6.1% gray dot 13
KLIC Kulicke & Soffa Industries, Inc. $24.84 1,790 11.5% 56.9% 13.4% 14
GGG Graco Inc. $46.60 2,712 12.9% 62.0% 6.4% 15
MU Micron Technology, Inc. $42.92 52,577 15.6% 36.0% 13.2% 16
KLAC KLA-Tencor Corporation $107.66 16,994 8.3% 131.8% 6.3% 17
LPX Louisiana-Pacific Corporation $27.65 4,051 11.8% 36.5% 2.9% 18
CRUS Cirrus Logic, Inc. $53.21 3,531 10.6% 65.8% 29.2% gray dot 19
KORS Michael Kors Holdings Ltd $63.84 9,842 9.0% 65.4% 11.7% gray dot 20
OSB Norbord Inc. $34.17 2,969 14.0% 31.5% 10.7% 21
UPL Ultra Petroleum Corp. $8.16 1,602 10.9% 34.6% -4.7% 21
BBY Best Buy Co., Inc. $72.40 22,111 8.8% 53.5% -2.4% gray dot 22
USNA USANA Health Sciences, Inc. $74.50 1,832 8.3% 90.4% 11.9% 23
EGOV NIC Inc. $17.45 1,156 7.7% 602.2% 8.4% 24
SBH Sally Beauty Holdings, Inc. $18.06 2,459 11.8% 51.0% 2.6% gray dot 25
TJX TJX Companies Inc $76.59 49,238 8.0% 73.1% 6.6% gray dot 26
GPS Gap, Inc. $32.71 12,855 10.4% 33.6% -1.3% gray dot 26
GNTX Gentex Corporation $22.80 6,544 9.0% 72.3% 12.8% gray dot 27
AEO American Eagle Outfitters, Inc. $17.44 3,124 11.0% 33.8% 3.0% gray dot 28
LEA Lear Corporation $187.12 12,880 11.4% 42.3% 4.6% 29
DLPH Delphi Automotive PLC $57.72 15,420 12.3% 45.8% 0.8% 30
LYB LyondellBasell Industries NV $115.89 45,777 10.4% 33.8% -11.9% 31
VVV Valvoline Inc. $24.95 5,065 8.6% 53.4% 0.8% gray dot 32
WSM Williams-Sonoma, Inc. $53.85 4,598 10.2% 31.7% 5.1% gray dot 33
CASA Casa Systems, Inc. $20.42 1,654 7.5% 108.8% 22.5% 34
TNH Terra Nitrogen Company, L.P. $85.72 1,586 7.8% 60.5% -16.8% 35
LB L Brands, Inc. $48.99 13,962 9.1% 52.3% 5.3% gray dot 36
CYD China Yuchai International Limited $25.36 1,032 24.1% 25.8% -6.9% 37
RHI Robert Half International Inc. $55.70 6,918 7.7% 79.9% 7.4% 38
CO China Cord Blood Corporation $9.08 1,031 10.6% 31.0% 6.5% 39
AZO AutoZone, Inc. $781.02 21,944 7.8% 53.8% 4.8% gray dot 40
AHGP Alliance Holdings GP, L.P. $27.59 1,652 10.5% 30.0% -4.0% 41
VGR Vector Group Ltd. $21.34 2,834 7.2% 445.7% 18.9% 41
HPQ HP Inc. $22.88 38,599 8.5% 66.4% -17.7% 42
AEIS Advanced Energy Industries, Inc. $71.84 2,886 7.2% 104.9% -1.9% 43
AAPL Apple Inc. $176.19 913,295 7.1% 92.2% 8.6% gray dot 43
LRCX Lam Research Corporation $190.39 35,009 7.3% 119.1% 20.8% 44
HA Hawaiian Holdings, Inc. $38.25 2,047 16.9% 23.3% 4.6% 45
AMCX AMC Networks Inc. Class A $52.39 3,376 12.4% 35.3% 20.7% 46
Tracking Portfolios
blue wand Magic Recipe 29.36%
purple wand Deep Value 24.71%
orange wand Quality Growth 44.22%
green wand Green Team 6.14%
red dot Red Rating 5.76%
yellow dot Yellow Rating 14.17%
green dot Green Rating 14.95%
New Spell Stocks
blue wand Vector Group Ltd. (VGR)
purple wand New Stocks Added!