In order to grow fast, a company must have accelerating and extended sales and earnigs growth; they must have a good business model that can solve problems. The management of the company must be good. Here are the 3 fastest growing companies on NASDAQ.
FireEye Inc. (FEYE)
It has a $3.4 billion market cap.It is a cyber security leader today. It provides virtual-machine based security platform. More than 95% of FEYE’s customer evaluations have identified malicious activities that came from outside. They can even stop outbound theft of valuable intellectual property. Initially, the company’s stock price struggled due to high valuations and the lack of financial discipline. As they have a new CFO now, the financial discipline has returned to the company. Last year, for the first 9 months, the operating cash flow was +$28 million. There revenue growth was 55% for the first 9 months of last year. The gross margin of FEYE is expected to be 72%-74%.
Martin Marietta Materials (MLM)
This has a $9.2 billion market cap. It is one of America’s premier suppliers of aggregates, that is, sand, crushed stone and gravel. MLM has significant pricing power due to the localized nature of the aggregates industry and the high cost and political obstacle of building new quarries. During the third quarter of 2015, MLM’s gross margin increased by 480 basis points to 77% year-over-year. The prices of aggregates are expected to rise by 4% annually.
GoDaddy Inc. (GDDY)
It has a $5.2 billion market cap. It is the premier holder of the digital real estate. It is also the leading hosting provider for small businesses and individuals. It has 13.6 million customers and an inventory of more than 61 million domain names. For the year 2015, the company had revenue growth of 16%. It is expected that in the long run, the company revenue will continue to grow at 15%.
These companies are expected to grow more in the future. The other companies who are falling behind must look into the management style and other aspects of these companies and learn from them in order to move forward.