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 2018-02-16

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 $134.93 5,950 21.9% 107.8% 12.7% gray dot 1
IDCC InterDigital, Inc. $79.35 2,808 17.4% 178.6% 28.3% gray dot 2
GILD Gilead Sciences, Inc. $80.70 105,475 15.3% -356.2% 3.2% gray dot 2
BKE Buckle, Inc. $21.95 1,061 16.4% 58.5% -4.5% gray dot 3
TARO Taro Pharmaceutical Industries Ltd. $101.60 4,096 15.5% 60.9% 5.4% 4
NSP Insperity, Inc. $63.05 1,300 10.4% 104.6% 9.3% 5
KLIC Kulicke & Soffa Industries, Inc. $22.02 1,554 17.1% 70.6% 13.4% 6
TXT Textron Inc. $60.33 15,885 25.7% 55.8% 0.8% 7
MIK Michaels Companies Inc $24.58 4,473 10.0% 80.0% 4.4% gray dot 8
SAFM Sanderson Farms, Inc. $133.41 2,988 16.6% 38.1% 6.7% 9
SYNT Syntel, Inc $26.87 2,245 9.1% 94.4% 5.5% 10
AEIS Advanced Energy Industries, Inc. $65.56 2,599 9.2% 155.0% 8.8% 10
OSB Norbord Inc. $36.87 3,206 16.0% 37.9% 22.1% 11
EGRX Eagle Pharmaceuticals, Inc. $64.78 1,021 9.6% 123.0% 399.4% 12
OCLR Oclaro, Inc. $6.87 1,173 13.3% 39.9% 18.1% 13
MSGN MSG Networks Inc. Class A $25.05 1,898 10.5% 207.0% -17.5% 14
FL Foot Locker, Inc. $49.17 6,215 15.4% 39.4% 6.1% gray dot 15
HRB H&R Block, Inc. $28.04 5,862 9.7% 189.5% 0.1% gray dot 16
LRCX Lam Research Corporation $187.91 30,279 9.3% 99.3% 20.8% 17
TUP Tupperware Brands Corporation $50.95 2,598 10.5% 53.2% -4.5% 18
KLAC KLA-Tencor Corporation $107.52 16,836 8.5% 126.6% 6.3% 19
MU Micron Technology, Inc. $44.21 54,157 15.2% 36.0% 13.2% 20
CRUS Cirrus Logic, Inc. $41.77 2,738 12.7% 60.5% 29.2% gray dot 21
LPX Louisiana-Pacific Corporation $29.25 4,285 11.1% 36.5% 2.9% 21
KORS Michael Kors Holdings Ltd $63.90 9,851 9.0% 65.4% 11.7% gray dot 22
LYB LyondellBasell Industries NV $108.61 42,901 11.8% 35.4% -7.0% 23
AAPL Apple Inc. $172.43 889,358 8.1% 96.5% 8.5% gray dot 24
BBY Best Buy Co., Inc. $73.18 22,349 8.7% 53.5% -2.4% gray dot 25
THO Thor Industries, Inc. $124.83 6,593 9.6% 72.0% 28.7% 25
SBH Sally Beauty Holdings, Inc. $17.20 2,342 12.1% 51.0% 2.6% gray dot 26
CASA Casa Systems, Inc. $19.27 1,561 7.9% 108.8% 22.5% 27
DLPH Delphi Automotive PLC $50.87 13,590 13.6% 45.8% 0.8% 28
VVV Valvoline Inc. $23.37 4,744 9.1% 53.4% 0.8% gray dot 29
USNA USANA Health Sciences, Inc. $77.15 1,852 8.0% 104.7% 9.9% 30
GPS Gap, Inc. $33.27 13,075 10.2% 33.6% -1.3% gray dot 31
LEA Lear Corporation $189.57 12,986 11.6% 40.7% 5.0% 32
AZO AutoZone, Inc. $714.05 20,062 8.3% 53.8% 4.8% gray dot 33
AEO American Eagle Outfitters, Inc. $18.44 3,303 10.3% 33.8% 3.0% gray dot 34
TJX TJX Companies Inc $77.88 50,068 7.9% 73.1% 6.6% gray dot 35
HA Hawaiian Holdings, Inc. $38.65 2,020 19.1% 27.3% 5.4% 36
GNTX Gentex Corporation $22.83 6,504 9.0% 61.9% 9.3% gray dot 36
TNH Terra Nitrogen Company, L.P. $83.90 1,552 8.0% 60.5% -16.8% 37
WSM Williams-Sonoma, Inc. $54.11 4,620 10.1% 31.7% 5.1% gray dot 38
LB L Brands, Inc. $48.92 13,942 9.1% 52.3% 5.3% gray dot 39
HPQ HP Inc. $21.40 36,102 9.0% 66.4% -17.7% 40
RHI Robert Half International Inc. $56.20 6,962 7.8% 93.0% 4.0% 41
TER Teradyne, Inc. $43.31 8,489 7.6% 126.2% 9.4% 42
VGR Vector Group Ltd. $20.29 2,694 7.5% 445.7% 18.9% 43
MSTR MicroStrategy Incorporated Class A $137.55 1,575 7.5% 106.8% -4.5% gray dot 44
AHGP Alliance Holdings GP, L.P. $26.46 1,584 11.0% 30.0% -7.7% 45
Tracking Portfolios
blue wand Magic Recipe 33.56%
purple wand Deep Value 26.96%
orange wand Quality Growth 54.79%
green wand Green Team 16.01%
red dot Red Rating 8.00%
yellow dot Yellow Rating 20.92%
green dot Green Rating 28.22%
New Spell Stocks
blue wand Eagle Pharmaceuticals, Inc. (EGRX)
purple wand New Stocks Added!