Stocks That Could Continue to Run: Sodastream International Ltd (SODA), Neustar Inc (NSR), On Assignment, Inc. (ASGN)

Neustar Inc (NYSE:NSR)

The third stock is Neustar. NeuStar is a provider of real-time information and analytics for the Internet, telecommunications, entertainment, and marketing industries as well as a provider of clearinghouse and directory services to the global communications and Internet industries.  NeuStar is well-positioned to benefit from increased consumption of big data.  The company currently sells at a price to earnings multiple of around 15 and a forward price to earnings multiple of around 13.  NeuStar’s underlying fundamentals are extremely positive and it appears as though a number of factors such as the acquisition of Targus Information and increased demand will result in continued growth for the company.

My Foolish Take

All three of these companies have very strong earnings, sales, and other fundamentals that suggest that they will continue to rise.  Although these companies trade at price to earnings multiples that are higher than the value stocks that I mull over, all of these companies are growing at rapid rates and there is no reason to believe that trend will stop.  Of these companies, On Assignment’s performance is the most correlated to the overall economy – so be careful with that stock.  All of these stocks have upside potential, but that is accompanied by significant risk.

All factors considered, Sodastream International Ltd (NASDAQ:SODA) and NeuStar are the best bets.  But I would wait for a significant pullback before considering any of these stocks.  For a variety of reasons, I do not feel that any of these stocks are stocks that you could simply buy and hold.  Instead, I lump these three stocks into the “trading stocks” category.  So if you consider purchasing one of these stocks, ensure that you understand what makes the stock move and closely monitor underlying fundamentals and trends.

The article Stocks That Could Continue to Run originally appeared on Fool.com and is written by Ryan Peckyno.

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