This month’s top emerging growth stocks for February come from a range of industries, from energy to energy beverages, but the biggest group — three — are up-and-comers in pharma. Here’s a look at the top five emerging growth stocks for February:
Monster Beverage Corporation
Monster Beverage Corporation (NASDAQ:MNST) used to be known as Hansen Natural Corporation (NASDAQ:HANS), but changed its name and ticker symbol to reflect the growing popularity of its line of Monster energy drinks. This represented a major facelift for the company, which has been in business since the 1930s. The remainder of the company’s product roster is actually very wholesome, with 30 real fruit and spice soda flavors, a number of immune system-boosting drinks, vitamin waters and an array of teas and lemonades.
In recent quarters, the company has reported “monster” sales and profit growth. In the third quarter, sales and earnings popped 24%, and speculation began to heat up that Monster might be an acquisition target by Red Bull or one of the major soft drink companies. Monster will report earnings in late February.
Eagle Rock Energy Partners
Eagle Rock Energy Partners (NASDAQ:EROC) is a player in the midstream and upstream segments of the oil and natural gas business, and the company has natural gas gathering and processing facilities in the Texas Panhandle, east Texas/Louisiana, south Texas, west Texas and the Gulf of Mexico. In total, the company has about 5,500 miles of pipeline, 19 processing plants and 600 operated producing wells.
The company is split about half-and-half between natural gas and oil and has fared well despite the record-low natural gas prices in the U.S. This is because Eagle Rock is a pipeline company that transports natural gas — similar to DCP Midstream Partners (NYSE:DPM) and Plains All American Pipeline (NYSE:PAA). These companies have fared well since all that gas still has to be transported — despite low natural gas prices. And out of all these companies, Eagle Rock pays the highest annual dividend at a whopping 7.7% annual yield! In fact, the company recently increased its latest quarterly dividend by 5% to 21 cents per share.
Looking forward, the analyst community is expecting annual sales growth of 35.1% and earnings growth of 800% in the fourth quarter. In the past three months, the analyst community has revised their consensus earnings estimate 80% higher. Eagle Rock will report fourth-quarter earnings after the market close on Wednesday, Feb. 22, and I want to make sure I’m in line to profit from a strong report.