Stocks to Buy: Huge Growth for a Bargain Price

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Some of the most exciting stocks to buy are those with impressive growth potential.

Companies that are able to grow earnings for a long period of time can often see their stock prices soar for years, creating tremendous wealth for shareholders. Stocks to Buy: Huge Growth for a Bargain Price

Unfortunately, much of what passes for growth stock investing today is really momentum investing in disguise. Today's growth stock investors all tend to own and trade the same really popular companies that have already experienced significant price appreciation.

While it may be exciting to share cocktail party chatter with friends about the shares of Apple Inc. (Nasdaq: AAPL) or Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR), odds are that the real growth and profit opportunity has passed.

It makes more sense for growth investors to look for stocks of companies that have been growing sales and earnings at a consistently high rate, but are off Wall Street's radar. Companies that have very high rates of institutional ownership and lots of analyst coverage from the major firms are more than likely fully priced. All the growth potential is well defined and everyone already owns the stock.

The big rally moves in growth stocks come when the institutional money discovers the company and intense buying pressure develops as they all pile into the stock, pushing prices dramatically higher.

One such company that fits the bill now is CPI Aerostructures Inc. (NYSEAMEX: CVU).

Stocks to Buy: CPI Aerostructures (NYSEAMEX: CVU)

CPI Aerostructures builds structural components for military and commercial aircraft as a subcontractor.

CPI has been off Wall Street's radar screen; in fact, some investors have been selling, afraid the sequester would hurt the share price.  

What many are overlooking is that this company has been growing at an impressive pace. Sales and earnings have both averaged increases of over 30% for the past five years. In the most recent quarter, the company reported record sales and profits for the quarter and the full year.

CPI Aerostructures has acknowledged that the sequester may cause growth to slow in 2013, but beyond that the company is well positioned to regain a strong growth track.

The company has a $392 million backlog and a strong bid pipeline. Many of its military programs such as the Hawkeye Surveillance aircraft and UH 60M Blackhawk are not expected to be effected by the projected cutbacks in military spending. Commercial markets are recovering quickly and new demand is starting to emerge for next generation business jets such as the Gulfstream G60 and Cessna Citation X where the company already has subcontractor status.

While 2014 may show some weakness the expectations are that this company will recover its plus-30% earnings growth rate after that.

But, here is what Wall Street is really missing about CPI Aerostructures...

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