Great Stocks To Buy In 2012

Companies that continue to grow earnings at a good clip and are still cheap at the current earnings multiple offer investors a unique opportunity to buy growth at a reasonable price. While future growth cannot be guaranteed, low valuation can often add a good margin of safety should the projected growth not materialize.

The following stocks all have PE ratios below 15, have grown EPS in the last 3 years at > 20% and are projected to have a healthy EPS growth going forward for the next 5 years. These companies also have ttm profit margin better than 15%. I have also narrowed down to the companies with market value between 50 million and 1 billion. These are some of the best quality small cap stocks to buy now for their future earnings growth.

Great Stocks To Buy In 2012:Hub Group Inc. (HUBG)

 Hub Group, Inc., an asset-light freight transportation management company, provides intermodal, truck brokerage, and logistics services in North America. Its intermodal services include arranging for the movement of customers' freight in containers and trailers over long distances. The company contracts with railroads to provide transportation for the long-haul portion of the shipment, and with local trucking companies for pickup and delivery; and negotiate rail and drayage rates, electronically track shipments in transit, consolidate billing, and handle claims for freight loss or damage on behalf of its customers. Its truck brokerage operations provide customers with specialized programs, including the Dedicated Trucking program, where certain carriers informally move freight for its customers on a continuous basis. The company also offers various transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility under the name of Unyson Logistics. Hub Group primarily serves customers in consumer products, retail, and durable goods industries. The company was founded in 1971 and is headquartered in Downers Grove, Illinois.

Great Stocks To Buy In 2012:Magic Software Enterprises Ltd. (MGIC)

 Magic Software Enterprises Ltd. develops, markets, and supports software development and deployment technology and applications. It offers uniPaaS, an application platform for developing and deploying business applications; and iBOLT, a platform for business and process integration. The company?s uniPaaS and iBOLT platforms enable enterprises to accelerate the process of building and deploying applications to customize and integrate with existing systems. It also provides information technology (IT) professional services in the areas of infrastructure design and delivery, application development, and technology planning and implementation services, as well as supplemental staffing services. In addition, the company offers consulting services in connection with installation assurance, application audits and performance enhancement, application migration, and application prototyping and design; maintenance contracts; technical support; and training on its development tools. Magic Software Enterprises Ltd. provides its products and services through a network of regional offices, independent software vendors, system integrators, distributors, and value added resellers, as well as through original equipment manufacturers and consulting partners in approximately 50 countries worldwide. It serves finance, insurance, government, health care, logistics, manufacturing media, retail, and telecommunications industries. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was founded in 1983 and is headquartered in Or Yehuda, Israel. Magic Software Enterprises Ltd. is a subsidiary of Formula Systems (1985) Ltd.

Great Stocks To Buy In 2012:Synergetics USA Inc. (SURG)

 Synergetics USA, Inc., a medical device company, engages in the design, manufacture, and marketing of microsurgical instruments and consumables primarily for ophthalmology and neurosurgery markets in the United States and internationally. The company?s product lines focus upon precision engineered, microsurgical, handheld devices, and the microscopic delivery of laser energy, ultrasound, electrosurgery, aspiration, illumination and irrigation that are delivered in multiple combinations. It offers retinal surgical items, including handheld disposable and reusable forceps and scissors, fiberoptics for illumination and photocoagulation, cannulas, scrapers, and other reusable and disposable surgical devices. The company also provides bipolar electrosurgical generators; lesion generators used for minimally invasive pain treatment; and directional laser probes, as well as offers gauge instrumentation to the vitreoretinal surgical market. It sells its products through direct sales employees, distributors, and independent sales representatives. The company was founded in 1991 and is headquartered in O?Fallon, Missouri.

Great Stocks To Buy In 2012:New Oriental Education & Technology Group Inc. (EDU)

 New Oriental Education & Technology Group Inc. provides private educational services primarily in the People?s Republic of China. It offers a range of educational programs, services, and products consisting primarily of English and other foreign language training; test preparation courses for admissions and assessment tests; primary and secondary school education; development and distribution of educational content; software and other technology; and online education. The company?s language training courses primarily consist of various types of English language training courses, and other foreign languages, including German, Japanese, French, Korean, and Spanish. It offers test preparation courses for language and entrance exams used by educational institutions in the United States, the People?s Republic of China, and commonwealth countries. The company also operates primary and secondary schools in Yangzhou. In addition, New Oriental Education & Technology Group Inc. develops and edits content for educational materials for language training and test preparation, such as books, software, CD-ROMs, magazines, and other periodicals. It distributes these materials through various distribution channels consisting of own classrooms and bookstores, as well as third-party distributors. Further, the company offers various online education programs on its Web site, koolearn.com. Additionally, it provides consulting services to help students through the application and admission process for overseas educational institutions, as well as post-secondary educational programs to help students seek career opportunities; and operates two pre-schools. The company offers educational services under the ?New Oriental? brand name. As of May 31, 2010, it offered education programs, services, and products through a network of 48 schools, 319 learning centers, and 25 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People?s Republic of China.

Advisors' Opinion:

• By Ro! bert Hsu At 2011-9-21

  The company will change the ratio of its shares on August 18—essentially the same thing as a four-for-one split. So, if EDU is trading at $120, shareholders will receive four shares worth $30 each.

  As I’ve mentioned, I think the stock split is bullish for stock performance, because more small retail investors may be interested in purchasing EDU stock at the lower price.

  A good example of this stock split effect is Baidu. Baidu did a 10-for-1 split last year when the share price was around $800. Since then, Baidu’s price has almost doubled! EDU is a buy.

• By Kevin1977 At 2011-8-28

  The demand for English-language education is particularly strong in China right now, and people are willing to pay a lot of money for training that will enable them to communicate and conduct business globally. As China’s largest private education services company, New Oriental Education & Technology (EDU) is the way to play this powerful trend.

Great Stocks To Buy In 2012:NIC Inc. (EGOV)

 NIC Inc. provides eGovernment services that enable governments use the Internet to provide various services to businesses and citizens in the United States. It operates in two segments, Portal Outsourcing, and Software and Services. The Portal Outsourcing segment enters into long-term contracts with governments to design, build, and operate Web-based enterprise-wide portals on their behalf. These portals consist of Web sites and applications that enable businesses and citizens to access government information online and complete transactions, including applying for a permit, retrieving driver?s history records, and filing a government-mandated form or report. The Software and Services segment involves in the software development and services to state and local governments, and federal agencies; development and management of the national motor carrier pre-employment screening program; design and development of online campaign expenditure and ethics compliance systems for federal and state government agencies; and provision of software applications and services for electronic filings and document management for the California Secretary of State. It also provides consulting, application development, and portal management services to governments. The company was founded in 1991 and is headquartered in Olathe, Kansas.

Great Stocks To Buy In 2012:Advantest Corporation (Kabushiki Kaisha Advantest) ADS (ATE)

 Advantest Corporation and its subsidiaries manufacture and sell semiconductor and component test system products, and mechatronics-related products. It operates in three segments: Semiconductor and Component Test System; Mechatronics System; and Services, Support, and Others. The Semiconductor and Component Test System segment provides test systems for memory semiconductors for memory semiconductor devices and test systems for system-on-a-chip (SOC) semiconductors for non memory semiconductor devices. Its test systems for non memory semiconductors include test systems for SoC semiconductors, LCD driver integrated circuits, and semiconductors used in car electronics. The Mechatronics System segment focuses on peripheral devices to the semiconductor and component test systems. It offers test handlers, mechatronic-applied products for handling semiconductor devices, device interfaces that serve as interfaces with the devices that are measured, and operations related to nano-technology products. The Services, Support, and Others segment provides various customer support services and equipment lease. The company also involves in research and development activities, and provides maintenance and support services associated with semiconductor and component test system products, and mechatronics-related products. Advantest Corporation sells its products through direct sales channels to semiconductor manufacturers, foundries, and test houses. It operates in Japan, Asia, the Americas, and Europe. The company was formerly known as Takeda Riken Industry Co., Ltd. and changed its name to Advantest Corporation in October 1985. Advantest Corporation was founded in 1954 and is based in Tokyo, Japan.