Shares of MiX Telematics Limited (NYSE:MIXT) have been experiencing an accelerated earnings and sales growth over the past 5 years.  Over that time frame the firm has seen earnings growth of 10.60% and sales growth of 7.90%.

When dealing with the equity markets, investors are often tasked with trying to find stocks that are bound for glory. Every investor dreams of finding those stocks that were overlooked but are poised to pick up momentum. New investors are often instructed to set goals before starting to invest. Creating attainable, realistic goals can be a good starting point before digging into the investment trenches. After setting up goals considering financial status, objectives, timeframes and risk appetite, the next step may involve creating an actionable plan. Once the plan is in place, it may be extremely important to routinely monitor the performance of the portfolio. There are often many well crafted investment plans that for whatever reason don’t seem to be working out properly. Being able to evaluate and adjust the plan based on market activity may end up being the difference between a winning or losing portfolio. Being able to adapt to the fast paced and often times tumultuous market landscape can be a gigantic benefit for long-term portfolio health.

While the firm has enjoyed the upward movement, it’s important to look at analyst expectations and where the company is headed from here.  On a consensus basis, analysts are projecting EPS growth of 19.38% for next year and have a $24.68 one year price target on the stock.   The stock recently traded at $17.60.

 Six Fundamental Characteristics of Great Growth Stocks

#6 Huge Mass Markets – The more potential customers there are, the greater the possibility that both the company, and the investment in said company, will be a success. 

#5 Market Dominance/Barriers to Entry – Look for companies who hold patents.  This is great barrier to entry, ensuring no competition.  Look for companies who dominate the market, blowing away the competition, though market dominance can be harder to measure. 

#4 Accelerating Earnings Growth – If a company’s earnings growth rate increases for two consecutive quarters, their growth is accelerating.  Faster growth is better growth, and a company whose earnings growth rate is accelerating is an attractive investment.

#3 Triple-Digit Revenue Growth – Companies growing their revenues at triple-digit rates (100% or better) are usually smaller and less known, making them attractive for buying by institutions. 

#2 High Profit Margins – In recent decades, high-margin stocks have beaten low-margin stocks by a huge amount. 

#1 Top Notch, Innovative Management – All great managers who led their companies to success usually did so by thinking differently.  There is no surefire and quick measurement of management talent.  When you find a top manager, one with a record of prior success and accolades, you should strike.  Top managers usually find a way to overcome obstacles. 

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, MiX Telematics Limited (NYSE:MIXT)‘s stock was 37.93%.  Over the last week of the month, it was -1.62%, 14.21% over the last quarter, and  -4.09% for the past six months. 

MiX Telematics Limited (NYSE:MIXT)’s EPS is 0.60.  Last year, their EPS growth was 64.20% while their EPS growth over the past five years is 10.60%.  Analysts are predicting MiX Telematics Limited’s stock to grow 19.38% over the next year and 1.29% over the next five.

Investors are constantly trying to make smarter decisions when it comes to dealing with the stock market. There are so many choices out there that it may become completely overwhelming at first. Starting with a baseline approach can help ease the burden of too much information. Developing the proper investment knowledge may take a lot of time and effort. Many investors may find out the hard way that shortcuts are not the answer to achieving long-term success in the stock market. Many people may occasionally get lucky and think they can do no wrong. Over time, this type of investor may see profits start to shrink and losses start to pile up. Many investors are bombarded with hot investment tips. It can be very tempting to take advice from someone who has actually made money in the markets previously. However, the old adage remains the same; past results may not indicate future results. Thinking that something that has worked in the past will no doubt work in the future can be a recipe for portfolio disaster. Individual investors who do their own thorough research should be much better positioned to make the proper decisions when the time comes.

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