10 Fast-Growing, Large-Cap Stocks

Where do you stand on the trade-off between a small, fast-growing company and a huge, well-established Goliath? The former offers far more upside but subjects the investor to more risk. Can a young IPO fall to zero? Sure, look at Refco. The commodities brokerage went public in 2005 and soon collapsed amid a scandal.

Big caps tend to be safer bets. They've been around, and have accumulated a steady stream of sales and earnings. Costco has no realistic risk of going under anytime soon. On the other hand, it's hard to see how the warehouse-style retailing pioneer can put up the explosive growth rates in future years that can come anywhere close to the advances seen in its younger years.

Here's the good news: Sometimes, you can have the best of both worlds. There are a few big-cap stocks, household names, that are still putting up growth numbers that are the envy of many small-cap corporate youngsters.

One word of caution in this damaged market: Don't confuse recent strength in a big-cap stock with great opportunities.

Instead, look for those big names that are doing something special, and showing those results in their bottom line. Apple is such a firm, so is China Mobile. Procter & Gamble is not.

Bear in mind the market is in a correction, so this is not a proper time to buy. And, even in a healthy market, this should not be regarded a buy list. What's more, most of the stocks presented below are well extended from prior bases. But because these companies have great growth, they are the names that bear watching. After all, this storm will pass one day.

The stocks in this week's list were screened using the following criteria:

EPS, RS Rating >= 70
Acc/Dis Rating = A, B, C
Composite Rating 90 or better
Latest Qtr EPS % Chg >= 20%
3-year EPS growth rate >= 20%
Latest Qtr Sales % Chg >= 20%
3-year sales growth rate >= 20%
Market Cap >= $20 billion
Price >= $15
Avg Vol >= 100,000 shares
Within 20% of a 52-week high

Data as of market close, Wednesday, Aug 1.

* The Earnings Per Share Rating compares a company's last two quarters and last 3-5 years of growth and stability with those of all other companies. A 90 rating means its earnings outperformed 90% of all companies.

** The Relative Price Strength Rating that appears for each stock is calculated by comparing its price change over the past 12 months to that of all other stocks in the tables. Results are rated on a scale from 1 to 99, with 99 being best. A RS Rating of 99 is the highest possible and means the stock has outperformed 99% of all stocks in the past 12 months. An RS Rating of 1 means nearly all other issues have done better. Market leaders usually rate 80 or higher.

***The Acc/Dis Rating uses a price and volume formula to determine if a stock is under accumulation (buying) or distribution (selling) in the last 13 weeks. A signals heavy buying; E is heavy selling.

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