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 2018-01-19

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

Ticker Company Price MktCap EY ROIC 3YG Rating Rank
UTHR United Therapeutics Corporation $139.51 6,152 21.1% 107.8% 12.7% gray dot 1
GILD Gilead Sciences, Inc. $80.98 106,813 16.3% 193.3% 11.7% gray dot 2
IDCC InterDigital, Inc. $79.45 2,812 17.3% 178.6% 28.3% gray dot 3
BKE Buckle, Inc. $20.75 1,003 17.7% 58.5% -4.5% gray dot 4
TARO Taro Pharmaceutical Industries Ltd. $105.07 4,236 14.7% 60.9% 5.4% 5
NSP Insperity, Inc. $60.70 1,252 10.8% 104.6% 9.3% 6
SYNT Syntel, Inc $23.54 1,966 10.3% 94.4% 5.5% 7
OCLR Oclaro, Inc. $6.77 1,157 15.0% 46.5% 18.1% 8
MSGN MSG Networks Inc. Class A $22.35 1,694 11.2% 218.2% -17.5% 9
MIK Michaels Companies Inc $26.01 4,733 9.7% 80.0% 4.4% gray dot 10
SAFM Sanderson Farms, Inc. $135.65 3,038 16.2% 38.1% 6.7% 11
HRB H&R Block, Inc. $26.28 5,494 10.2% 189.5% 0.1% gray dot 12
MSTR MicroStrategy Incorporated Class A $140.98 1,621 8.7% 117.2% -3.8% gray dot 13
FL Foot Locker, Inc. $50.21 6,347 15.1% 39.4% 6.1% gray dot 14
KLIC Kulicke & Soffa Industries, Inc. $25.61 1,846 11.0% 56.9% 13.4% 15
MU Micron Technology, Inc. $42.75 52,369 15.7% 36.0% 13.2% 16
CASA Casa Systems, Inc. $18.53 1,501 8.2% 108.8% 22.5% 17
EGOV NIC Inc. $17.00 1,127 8.0% 602.2% 8.4% 18
CRUS Cirrus Logic, Inc. $52.76 3,501 10.7% 65.8% 29.2% gray dot 19
LPX Louisiana-Pacific Corporation $28.75 4,212 11.3% 36.5% 2.9% 20
UPL Ultra Petroleum Corp. $8.05 1,580 11.0% 34.6% -4.7% 21
OSB Norbord Inc. $35.71 3,103 13.4% 31.5% 10.7% 22
KORS Michael Kors Holdings Ltd $65.86 10,154 8.7% 65.4% 11.7% gray dot 23
USNA USANA Health Sciences, Inc. $75.90 1,866 8.1% 90.4% 11.9% 24
SBH Sally Beauty Holdings, Inc. $18.51 2,520 11.6% 51.0% 2.6% gray dot 25
GNTX Gentex Corporation $22.81 6,547 9.0% 72.3% 12.8% gray dot 25
KLAC KLA-Tencor Corporation $115.02 18,155 7.7% 131.8% 6.3% 26
LEA Lear Corporation $191.18 13,160 11.1% 42.3% 4.6% 27
DLPH Delphi Automotive PLC $56.55 15,108 12.5% 45.8% 0.8% 28
TNH Terra Nitrogen Company, L.P. $83.69 1,548 8.0% 60.5% -16.8% 29
BBY Best Buy Co., Inc. $76.86 23,473 8.3% 53.5% -2.4% gray dot 30
TJX TJX Companies Inc $78.89 50,717 7.8% 73.1% 6.6% gray dot 31
AEO American Eagle Outfitters, Inc. $18.42 3,300 10.3% 33.8% 3.0% gray dot 32
GPS Gap, Inc. $34.81 13,680 9.8% 33.6% -1.3% gray dot 33
VVV Valvoline Inc. $24.99 5,073 8.6% 53.4% 0.8% gray dot 34
LYB LyondellBasell Industries NV $119.92 47,368 10.1% 33.8% -11.9% 35
WSM Williams-Sonoma, Inc. $55.29 4,721 9.9% 31.7% 5.1% gray dot 36
LB L Brands, Inc. $50.69 14,447 8.9% 52.3% 5.3% gray dot 37
CYD China Yuchai International Limited $26.87 1,094 21.6% 25.8% -6.9% 38
CO China Cord Blood Corporation $9.05 1,027 10.7% 31.0% 6.5% 39
RHI Robert Half International Inc. $57.02 7,082 7.5% 79.9% 7.4% 40
AZO AutoZone, Inc. $793.80 22,303 7.7% 53.8% 4.8% gray dot 41
AHGP Alliance Holdings GP, L.P. $28.17 1,686 10.3% 30.0% -4.0% 42
FFIV F5 Networks, Inc. $138.76 8,804 7.2% 249.9% 6.5% 43
HPQ HP Inc. $23.70 39,982 8.3% 66.4% -17.7% 44
VGR Vector Group Ltd. $21.72 2,884 7.1% 445.7% 18.9% 45
AAPL Apple Inc. $178.46 925,062 7.0% 92.2% 8.6% gray dot 46
HA Hawaiian Holdings, Inc. $37.95 2,031 17.0% 23.3% 4.6% 47
AMCX AMC Networks Inc. Class A $53.97 3,478 12.2% 35.3% 20.7% 48
SWKS Skyworks Solutions, Inc. $99.20 18,421 7.5% 77.4% 18.1% gray dot 49
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
purple wand New Stocks Added!
orange wand New Stocks Added!