Hot Growth 2008: Highflying Small Companies


The reasons companies rose to the head of the Hot Growth pack are as diverse as the list itself. Some, like robotic surgery pioneer Intuitive Surgical (No.41), are riding high on a technological breakthrough. Others, like for-profit Strayer Education (No.7), have risen with demographic trends—in this case, demand among adults for further training in subjects like accounting and info tech.

Sometimes it's a matter of taking advantage of a red-hot end market. Many of the industrial names on the list are benefiting from the global infrastructure boom and do highly specialized work that's in demand right now. For example, two companies on this year's ranking—North American Galvanizing & Coatings (No.4) and AZZ (No.42)—focus on coating steel to protect it from rust.

This scoreboard gives you the numbers behind the stories. The first two columns, return on invested capital and three-year sales growth, were used in our initial screens. The next two columns, earnings growth and shareholder returns over the past year, show a sense of each company's growth trajectory. The final two columns give an idea of the relative size of the Hot Growth companies.



Click column heading once to reorder from highest to lowest. Click twice to reorder from lowest to highest.
Rank
Company Name
Return on
Inv. Cap.
(%)
3-yr.
Sales Growth
(%)
1-yr.
Sales Growth
(%)
1-yr.
Earnings Growth
(%)
1-yr.
Tot. Return
(%)
Latest 12-mo. Sales
($ Mil.)
Latest 12-mo. Profit
($ Mil.)
Current
Market Value
($ Mil.)
1 HANSEN NATURAL   35.4 71.4 49.0 53.0 -7.0 950.8 158.0 3,306.9 
2 LULULEMON ATHLETICA   27.5 87.7 85.0 302.0 NA274.7 30.8 2,742.5 
3 GRAHAM   32.7 26.1 39.0 330.0 171.0 84.5 14.3 283.7 
4 NORTH AMERICAN GALVANIZING & COATINGS   25.4 35.7 19.0 104.0 62.0 85.6 10.0 65.1 
5 BOLT TECHNOLOGY   27.8 52.6 51.0 82.0 -19.0 64.8 13.8 156.5 
6 VSE   25.0 43.1 80.0 81.0 38.0 721.2 15.0 168.9 
7 STRAYER EDUCATION   34.4 20.1 21.0 24.0 25.0 334.9 69.7 2,639.8 
8 CARACO PHARMACEUTICAL LABS   25.5 46.4 76.0 209.0 47.0 191.4 33.4 509.5 
9 XENOPORT   22.5 125.1 973.0 NM45.0 112.3 24.2 1,069.5 
10 GYMBOREE   38.6 15.8 16.0 13.0 0.0 920.8 80.3 1,225.0 
11 ASTRONICS   24.1 64.1 43.0 168.0 10.0 156.5 13.3 159.0 
12 AMERICAN ECOLOGY   23.3 45.3 42.0 22.0 35.0 172.8 20.3 485.0 
13 BLUE NILE   27.1 23.6 27.0 34.0 33.0 321.8 16.9 793.4 
14 VASCO DATA SECURITY INTERNATIONAL   29.3 56.8 58.0 67.0 -23.0 122.5 20.9 375.9 
15 QUICKSILVER RESOURCES   25.1 44.0 44.0 412.0 84.0 602.2 498.7 6,580.0 
16 NUTRISYSTEM   74.2 172.8 37.0 23.0 -71.0 754.9 81.2 618.3 
17 AMBASSADORS GROUP   42.9 30.6 29.0 16.0 -42.0 116.1 30.6 376.5 
18 SOTHEBY'S   24.5 23.4 38.0 99.0 -34.0 899.6 176.4 1,865.4 
19 BIDZ.COM   55.5 43.7 42.0 236.0 NA204.3 19.3 246.1 
20 PREMIER EXHIBITIONS   27.9 102.3 126.0 83.0 -49.0 61.5 12.3 174.9 
21 PETMED EXPRESS   27.5 19.2 19.0 34.0 -6.0 188.3 20.0 266.3 
22 L.B. FOSTER   45.8 18.6 31.0 933.0 109.0 491.8 113.9 350.4 
23 ULTIMATE SOFTWARE GROUP   52.3 28.3 32.0 702.0 15.0 158.4 32.2 812.1 
24 PRICELINE.COM   26.1 15.2 24.0 111.0 127.0 1,508.5 190.0 4,915.9 
25 J. CREW GROUP   36.6 18.6 16.0 25.0 10.0 1,334.7 97.1 2,924.8 
26 DECKERS OUTDOOR   22.2 26.5 47.0 117.0 52.0 473.9 68.3 1,794.9 
27 CAL-MAINE FOODS   29.6 30.7 46.0 972.0 149.0 850.2 133.6 700.7 
28 HAYNES INTERNATIONAL   19.7 33.8 27.0 47.0 -25.0 611.9 64.4 746.1 
29 SUN HYDRAULICS   24.0 21.1 18.0 36.0 66.0 175.5 24.0 500.4 
30 HURCO   22.0 23.1 24.0 31.0 9.0 202.1 23.3 293.8 
31 ITT EDUCATIONAL SERVICES   68.7 11.9 15.0 28.0 -44.0 900.2 166.6 2,976.7 
32 APPLIANCE RECYCLING CENTERS OF AMERICA   20.8 21.8 30.0 NM123.0 106.6 3.1 26.5 
33 INTERACTIVE INTELLIGENCE   35.9 26.5 32.0 70.0 -23.0 115.1 16.8 228.4 
34 UNDER ARMOUR   18.1 44.5 41.0 35.0 -29.0 639.6 45.5 1,622.8 
35 MORNINGSTAR   18.1 34.7 38.0 44.0 19.0 465.1 81.2 2,586.5 
36 ICF INTERNATIONAL   19.1 74.7 119.0 242.0 6.0 750.6 39.7 261.0 
37 HITTITE MICROWAVE   23.7 38.7 20.0 20.0 -7.0 163.4 52.3 1,233.7 
38 LSB INDUSTRIES   19.0 17.9 19.0 195.0 -5.0 599.5 46.6 320.6 
39 SIGMA DESIGNS   20.3 98.6 143.0 1,024.0 -14.0 221.2 70.2 524.8 
40 AMERIGON   17.3 26.4 26.0 110.0 19.0 64.7 7.5 324.8 
41 INTUITIVE SURGICAL   16.3 63.1 61.0 101.0 167.0 674.8 165.5 11,195.5 
42 AZZ   17.5 29.1 40.0 58.0 69.0 320.2 27.7 323.2 
43 ADAMS GOLF   17.6 20.1 24.0 4.0 10.0 94.6 9.4 49.9 
44 RTI INTERNATIONAL METALS   15.6 43.2 24.0 22.0 -50.0 631.9 92.8 946.6 
45 MIDDLEBY   19.0 23.1 24.0 24.0 -5.0 555.7 55.1 1,059.1 
46 NETFLIX   15.5 34.7 21.0 36.0 49.0 1,226.2 70.5 1,968.4 
47 VARIAN SEMICONDUCTOR EQUIPMENT   26.9 25.8 36.0 36.0 -21.0 1,096.8 144.5 2,729.3 
48 DAWSON GEOPHYSICAL   18.7 53.8 51.0 55.0 36.0 300.1 32.4 559.1 
49 IDEXX LABORATORIES   21.2 18.6 25.0 0.0 12.0 960.5 100.5 3,245.4 
50 GENCOR INDUSTRIES   31.1 14.2 20.0 134.0 85.0 81.2 30.1 253.0 

Sales and earnings are the latest figures available through the last 12 months. Earnings include net income from continuing operations before gains or losses from extraordinary items.

Three-year sales growth is calculated using the least-squares method. If results for the earliest year are negative or not available, the average is for two years.

Return on invested capital is earnings expressed as a percent of total debt and equity. If companies have made substantial accounting restatements, long-term returns may be averaged for two years instead of three years.

Time periods vary according to companies' fiscal calendars.