CREDIT SUISSE: Here Are The 29 Best Growth Stocks In America

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Photo: Herve Boinay | Flickr

In a new report to clients, Credit Suisse’s Andrew Garthwaite argues that growth stocks will outperform the market.”Quality growth only tends to underperform if there is a sharp fall in junk bond yields (unlikely) or a sharp rise in economic indicators (we think only small rise is likely),” he writes.

Garthwaite and his team screened the market for the 29 best U.S. growth stocks based on analyst recommendations (they’re all rated ‘Outperform’), structural themes (e.g. industrial automation, energy efficiency), and the firm’s HOLT model.

HOLT is the firm’s proprietary valuation model that ranks stocks based on discounted cash flows.  The stocks on this list have a HOLT score based on “% Change to Best Price,” which is defined as  “The percentage difference between the HOLT Default Forecast Warranted Value and the past week’s closing share price. A high percentage upside improves the score.”

The higher the percentage, the higher the growth potential for each selected stock.

We’ve collected Credit Suisse’s 29 best stock picks for growth, starting with the lowest HOLT score.

For more on HOLT, Credit Suisse’s offers a basic tutorial.

Read more:


Ticker: N

Sector: Business Software & Services

Forward P/E: 208.0

P/B: 33.8

HOLT: -91.1 per cent

Netsuite offers cloud-based business management software in addition to industry-specific solutions for over 12,000 companies. In 2011, the company was named the Best Financial Management Software by the Software & Information Industry Association.

Source: Credit Suisse


Ticker: VOLC

Sector: Medical Appliances & Equipment

Forward P/E: 62.6

P/B: 4.5

HOLT: -65.8 per cent

Volcano Corp manufactures devices to aid in the facilitation of endovascular and cardiovascular procedures. The company combines imaging and therapy to provide optimal patient outcomes.

Source: Credit Suisse


Ticker: HTWR

Sector: Medical Instruments & Supplies

Forward P/E: -32.1

P/B: 9.4

HOLT: -63.5 per cent

Heartware is a global medical device company that specialises in heart therapies. Over 2,500 patients with advanced stage heart failure have used the company's Ventricular Assist System.

Source: Credit Suisse

Starwood Hotels & Resorts

Ticker: HOT

Sector: Lodging

Forward P/E: 19.8

P/B: 3.4

HOLT: -45.4 per cent

Starwood operates over 1,000 hotels and vacation resorts around the world, about half of which are located in North American and the Caribbean. The company's brand names include St. Regis and Westin.

Source: Credit Suisse


Ticker: SBUX

Sector: Specialty Eateries

Forward P/E: 22.9

P/B: 8.6

HOLT: -39.1 per cent

Starbucks serves millions of customers each day, with around 18,000 locations in 60 countries. The company offers over 30 blends of coffee, as well as other specialty beverages.

Source: Credit Suisse

Las Vegas Sands

Ticker: LVS

Sector: Resorts & Casinos

Forward P/E: 17.5

P/B: 4.3

HOLT: -38.7 per cent

Las Vegas Sands develops destination properties around the globe. The company plans to issue a $0.35 dividend each quarter in 2013, up 40% from 2012.

Source: Credit Suisse

Family Dollar Stores

Ticker: FDO

Sector: Discount, Variety Stores

Forward P/E: 15.1

P/B: 5.9

HOLT: -35.8 per cent

This discount store company has over 7,000 stores across the U.S. The firm plans to accelerate store growth and open 500 new locations in 2013.

Source: Credit Suisse

Yum! Brands

Ticker: YUM

Sector: Restaurants

Forward P/E: 19.7

P/B: 18.2

HOLT: -31.5 per cent

Yum! is the world's largest restaurant company in terms of system units. The company operates nearly 40,000 restaurants in over 120 countries with over 1 million employees. Popular chains include Pizza Hut and Taco Bell.

Source: Credit Suisse


Ticker: VMW

Sector: Technical & System Software

Forward P/E: 27.7

P/B: 7.9

HOLT: -23.3 per cent

VMware is among the global leaders in cloud computing. The company currently has over 400,000 customers and reported revenues of $1.13 billion in 3Q 2012.

Source: Credit Suisse

Ticker: AMZN

Sector: catalogue & Mail Order Houses

Forward P/E: 142.3

P/B: 13.6

HOLT: -18.1 per cent

This leading e-commerce company is the world's largest online retailer and also sells a line of consumer electronics, such as the Kindle. The firm is headquartered in Seattle, Washington.

Source: Credit Suisse

Dollar Tree

Ticker: DLTR

Sector: Discount, Variety Stores

Forward P/E: 14.3

P/B: 6.8

HOLT: -14.8 per cent

Dollar Tree provides a variety of merchandise, from books to candy, with prices that do not exceed $1. The company's net sales for 3Q 2012 were $1.72 billion.

Source: Credit Suisse

Rockwell Automation

Ticker: ROK

Sector: Industrial Electrical Equipment

Forward P/E: 13.6

P/B: 6.1

HOLT: -3.8 per cent

Rockwell is the world's largest company dedicated to industrial automation. The firm offers information, migration, process, and safety solutions as well as a variety of other services to its industrial customers.

Source: Credit Suisse

Ralph Lauren

Ticker: RL

Sector: Textile - Apparel Clothing

Forward P/E: 18.6

P/B: 4.1

HOLT: -2.5 per cent

Ralph Lauren designs and distributes luxury apparel and fragrances, The company reported operating income of $348 million over the past quarter.

Source: Credit Suisse

Nielsen Holdings

Ticker: NLSN

Sector: Information & Delivery Services

Forward P/E: 14.4

P/B: 2.3

HOLT: +3.5 per cent

Nielsen is a global information and measurement company that offers its clients insights on consumer behaviour. The company employs approximately 34,000 people spread across 100 countries.

Source: Credit Suisse

Mead Johnson

Ticker: MJN

Sector: Processed and Packaged Goods

Forward P/E: 19.0

P/B: -73.9

HOLT: +9.9 per cent

Mead Johnson offers more than 70 products in over 50 countries designed to meet the nutritional needs of infants and children.

Source: Credit Suisse

Biogen Idec

Ticker: BIIB

Sector: Biotechnology

Forward P/E: 19.2

P/B: 5.2

HOLT: +14.1 per cent

Biogen is the world's oldest independent biotechnology company. The firm is an industry leader in multiple sclerosis products.

Source: Credit Suisse


Ticker: AGN

Sector: Drug Manufacturers

Forward P/E: 19.5

P/B: 5.3

HOLT: +31.1 per cent

Over 50 per cent of Allergan's work force is employed in R&D or sales. The company has a presence in over 100 countries and a work force of approximately 10,500.

Source: Credit Suisse


Ticker: PCLN

Sector: General Entertainment

Forward P/E: 17.4

P/B: 12.3

HOLT: +34.1 per cent

Priceline.Com offers customers discounted rates on travel-related purchases, such as flights and hotels. Over 235,000 hotels participate in Priceline's program.

Source: Credit Suisse


Ticker: GOOG

Sector: Internet Information Providers

Forward P/E: 15.0

P/B: 3.8

HOLT: +35.1 per cent

Google, the most popular online search engine and the biggest online advertiser, employs over 30,000 people worldwide.

Source: Credit Suisse


Ticker: TDC

Sector: Diversified Computer Systems

Forward P/E: 20.1

P/B: 7.1

HOLT: +37.2 per cent

Teradata provides analytics and other data solutions to provide business intelligence to its clients. The company has over 10,000 employees in 42 countries.

Source: Credit Suisse


Ticker: IHS

Sector: Information & Delivery Services

Forward P/E: 19.0

P/B: 4.2

HOLT: +54.7 per cent

IHS is a global information company which specialises in providing solutions relating to energy, economics, geopolitical risk, sustainability and supply chain management for its selected clients.

Source: Credit Suisse

Eli Lilly

Ticker: LLY

Sector: Drug Manufacturers

Forward P/E: 13.1

P/B: 4.2

HOLT: +54.8 per cent

Founded in 1876, this pharmaceutical company offers products in over 125 countries and employs approximately 40,000 people worldwide. Lilly's Bio-Medicines is the company's largest business unit.

Source: Credit Suisse


Ticker: MA

Sector: Business Services

Forward P/E: 18.6

P/B: 10.2

HOLT: +57.9 per cent

Mastercard is a technology and payments company used by individuals, businesses, and governments around the world. The company processes over 23 billion transactions per year.

Source: Credit Suisse

UnitedHealth Group

Ticker: UNH

Sector: Health Care Plans

Forward P/E: 10.2

P/B: 2.1

HOLT: +61.7 per cent

UnitedHealth is a leading provider of health care management services, including health maintenance organisations (HMOs), point of service plans (POS), and preferred provider organisations (PPO).

Source: Credit Suisse


Ticker: CRM

Sector: Application Software

Forward P/E: 76.9

P/B: 12.7

HOLT: -66.9 per cent offers real-time sales tracking that helps customers manage sales. A firm's use of's analytics increases sales by an average of nearly 30 per cent.

Source: Credit Suisse


Ticker: AAPL

Sector: Personal Computers

Forward P/E: 11.2

P/B: 7.0

HOLT: +82.1 per cent

This consumer electronics behemoth brought the world the iPod, iPhone, and iPad. The company's market cap exceeds the combined total of Microsoft and Google.

Source: Credit Suisse

EMC Corporation

Ticker: EMC

Sector: Data Storage Devices

Forward P/E: 13.1

P/B: 2.7

HOLT: +85.1 per cent

EMC Corp is a global leader in cloud computing. The company employs over 50,000 people worldwide and ranked 152 on the Fortune 500 in 2011.

Source: Credit Suisse


Ticker: QCOM

Sector: Communication Equipment

Forward P/E: 14.3

P/B: 3.7

HOLT: +93.1 per cent

Qualcomm, which bills itself as 'the world leader in next generation mobile technologies' offers a variety of products, from semiconductors to pet trackers. The company is headquartered in San Diego, California.

Source: Credit Suisse


Ticker: BRCM

Sector: Semiconductor - Integrated Circuits

Forward P/E: 11.1

P/B: 2.6

HOLT: +110.3 per cent

Broadcom offers semiconductors for both wired and wireless communications. The company holds over 10,000 patents and has another 7,500 patents pending.

Source: Credit Suisse

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