CNN Fortune Magazine has released its annual list of the 100 fastest growing companies in Corporate America. This list is always newsworthy for the financial markets since growth is so important in the financial markets.
NutriSystem Inc. (NASDAQ:NTRI), the maker of the prepared-meal program weight loss plans, ranked as the #1 fastest growing company in America on this year's list. Hansen Natural Corporation (NASDAQ:HANS), the energy drink maker, comes in at #2 on this year's list.
Not surprisingly considering the energy price gains over the past year is the fact that 37 of the companies on this year's top 100 list are in the energy sector. The first of those companies is Arena Resources Inc. (NYSE:ARD). The largest energy company that made the list is Valero Energy (NYSE:VLO), which came in at #36.
Technology companies accounted for 14 of the top 100 growers in this list. The top ranked technology company is Intuitive Surgical Corporation (NASDAQ:ISRG). Intuitive Surgical is popular for its surgical robots which help doctors in the operating room.
Also of note is that 15 of this year's fast growers are also big enough to be on the Fortune 500 list. Apple Inc (NASDAQ:AAPL) tops that list, coming in at #6 on the list of fastest growing companies.
Cognizant Technology Solutions Corp (NASDAQ:CTSH) ranks as the company ranking on the 100 fastest growing companies the most times in a row now, making its 5th straight appearance on the list. Steel Dynamics Inc (NASDAQ:STLD), led the long line of steel producers on the list, appearing on the list for the 4th straight year.
Another interesting factoid from the list is that 32 of the companies on the top 100 are based in Texas. Obviously this number is so high because there are a large number of energy companies based out of Texas. California and Illinois rank 2nd and 3rd with 11 and 6 companies respectively on the list.
Can this list help you make setup your investment portfolio? Yes it can, but you also need to be careful about just picking a fast grower. Before you go and buy a fast grower you need to check out the company's internals and the valuation of the company. One of the best valuation tools in this case would be to check these companies based on the PEG Ratio. The PEG ratio is particularly useful because it helps you gauge just how much the company is selling for in relation to its growth rate.
Use this list of the top 100 fastest growing companies in America as a tool in picking your stocks, but do not simple select the stock because it is on the list or your asking for trouble.
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