Young Guns – 2-2-13

Chuy's Holdings Inc

My Young Guns screen returned 13 stocks that meet my loose criteria for leading stocks that have had their IPO in the past five years. Narrowing the screen down to stock that were up at least 5% in the past week leaves us with four Young Guns to look at this week.

Chuy’s Holdings Inc (CHUY)

CHUY operates mexican restaurants across the southern states. The stock was up 16.1% on volume that was 444% greater than average volume last week. It then added to those gains this week, increasing another 6.8% into an all-time high on 88% better than average volume. The stock has exploded out of its first base since its IPO.

Heading into its 4th quarter 2012 earnings report, the company has reported 175% and 50% earnings growth in its two previous quarters. Annual earnings have been increasing since 2007 and are projected to continue growing through 2013. CHUY is currently suffering from a lack of strength in the restaurant industry, but is clearly one of the strongest stocks in that group.

E Q T Midstream Partners (EQM)

EQM is a natural gas company that is headquartered in my hometown of Pittsburgh, PA. It was up 5.8% this week on volume that was 41% lighter than average. The big up day this week was Tuesday, where the stock was up 4.3%, but volume was below average. The stock them spent the rest of the week bouncing above and below that high.

Last week, EQM reported earnings growth of 97% and sales growth of 38% for its most recent quarter. This was the sixth straight quarter where earnings grew by at least 25%. Annual earnings have grown every year since 2008 and are projected to grow another 21% in 2013.

Nationstar Mortgage Holdings (NSM)

NSM was up 6% this week on volume that was just slightly below average. Most of that gain came on Thursday, when the stock was up 5.2% on volume that was 34% above average. The stock improved on that gain Friday by moving up another 1.7% on 23% greater than average volume.

NSM has logged four straight quarters of triple digit earnings growth and two straight quarters of triple digit sales growth. Annual earnings for 2012 are estimated to be 917% above 2011. Annual earnings are projected to increase another 68% in 2013. This stock  has unbelievable earnings numbers, is breaking out of a consolidation into new highs, and is in a top ranked industry group.

Rentech Nitrogen Partners (RNF)

RNF increased 5.6% this week on volume that was 15% above average. The bulk of this gain came on Monday when the stock jumped 3% on volume that was 34% greater than normal. It then improved on those gains on Tuesday, Wednesday, and Thursday but did give back 0.8% on Friday in 32% greater than average volume

RNF has booked four straight quarters of triple digit earnings growth including 900% growth in its most recent quarter. Sales growth in that quarter was 56%. Annual earnings are projected to be up 186% in 2012 and then another 13% in 2013. The stock is well extended from a recent base and lacks support from its industry group.