As the firm's name indicates, Invesco European Growth Fund (Trades, Portfolio) looks to invest in European companies that have either strong fundamentals, accelerated growth rates, or are reasonably priced. Here are the top three stocks in the Fund's portfolio with the highest growth rates.
Micro Focus International PLC (LSE:MCRO, Financial)
MCRO consists of 1.7% of the firm's overall portfolio, with a total of 1,410,849 shares valued at $22,354,000.
Micro Focus was incorporated in 2004 in the United Kingdom and is a company that makes and sells software products.
The company has a 10-year EBITDA growth rate of 27.70%, making it the stock with the highest growth rate in the firm's porfolio of 69 stocks, with a total value around $1.31 billion. Micro Focus has a business predictability ranking of 2.5 stars out of 5.
According to the DCF calculator, MCRO's intrinsic value is £15.06 with a 21% margin of safety. The stock is currently trading at £11.83 a share, which indicates the stock may be undervalued.
Earnings per share for the trailing twelve months as of October 2014 was £0.53. Athough its growth rate for the past twelve months was -5.90%, the company's EPS growth rate long-term indicates healthy growth, at 28.60% over the past ten years.
Dragon Oil PLC (LSE:DGO, Financial)
DGO makes up 2% of the firm's overall portfolio with a total of 3,124,258 shares valued at $34,701,000.
Dragon Oil is an independent oil and gas company and has a ten-year EBITDA growth rate of 25.80%, which means it is the second highest EBITDA growth stock in the firm's portfolio.
According to the DCF calculator, DGO's intrinsic value is £23.21 with a 74% margin of safety. The stock is currently trading at £5.96, which indicates it may be undervalued.
Earnings per share for the trailing twelve months as of December 2014 was £0.85. The company's growth rate over the past 12 months was 24.90%. Over a ten year period, EPS was 26% a year.
Intrum Justitia AB (OSTO:IJ, Financial)
Intrum consists of 1.7% of the firm's portfolio with 827,756 shares valued at $22,012,000.
Intrum is a provider of credit management solutions and services all around Europe. Over the past ten years, the company's EBITDA growth rate was 21.30% and it has a business predictabiltiy rating of 3.5 stars out of 5.
According to the DCF calculator, IJ's intrinsic value is Kr 219.89 with a -10% margin of safety. The stock is currently trading at Kr 242.80, which indicates it may be overvalued.
Earnings per share for the trailing twelve months as of December 2014 was Kr 13.52. Growth rate for the past twelve months was 31.30%.
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