Go!
Which of the following companies posted the strongest compounded annual revenue growth between 2001 and 2006?

Company (Symbol) Annual Revenue Growth
A.)  Whole Foods (WFMI) +20%
B.)  Ceradyne (CRDN) +71%
C.)  eBay (EBAY) +52%
D.)  Research in Motion (RIMM) +60%
E.)  Electronic Arts (ERTS) +12%
Published: July 20, 2007

The correct answer is      (B.)  Ceradyne (CRDN)

At the end of the day, all companies have a single goal in mind -- to make a profit. And because profits are a key driver of stock prices, the earnings per share (EPS) line on the income statement is often the first place an investor looks when evaluating a firm.

However, it's easy to forget where those earnings originate from. Before a company can turn a profit, revenues must first come in the door. And it stands to reason that as revenues climb higher, earnings will typically follow. So, clearly revenue growth and share price appreciation often go hand-in-hand.

Each of the companies on the list above has delivered impressive double-digit revenue growth over the past five years, but body armor maker Ceradyne is far and away the leader of the group. Driven by robust demand for its products, the firm's revenues have soared from just $45 million in 2001 to more than $660 million in 2006. That, in turn, has pushed the firm's annual earnings from $0.20 per share to $4.69 per share over the same period.

Not surprisingly, investors who spotted this growth trajectory have been well rewarded -- shares of CRDN have soared more than +2,500% over the past five years.

In the June 2007 issue of StreetAuthority.com's Half-Priced Stocks newsletter, Editor Nathan Slaughter embarked on a search to find the next Ceradyne. Along with strong revenue growth, he narrowed the field using a number of other related criteria, including scaleability and capital efficiency.

Eventually, he identified five standouts -- all with superior annualized revenue growth of around +200% or higher. One of these companies has captured a dominating 60% share of the global computer webcam market. Another is a consumer products vendor whose customer base has swelled from 50,000 to 800,000 over the past few years -- but has barely even cracked its potential market. The stock skyrocketed over +1,000% in 2005, yet is still sharply undervalued today.

To learn more about StreetAuthority.com's premium Half-Priced Stocks newsletter, and to read complete profiles of the companies mentioned above, please visit this link.

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