2 Super Growth Stocks for 2013

Focus: STOCKS

Richard Moroney Image Richard Moroney Editor, Dow Theory Forecasts

The end of the year is a time to look back and look forward...and when choosing the latter, there are some great opportunities out there, notes Richard Moroney of Upside.

Cardinal Financial (CFNL)scores at least 90 for five of six Quadrix categories and earns a maximum Overall rank of 100.

The regional bank serves the Washington, DC area, one of the nation's strongest labor markets. Robust activity from mortgage refinancing drove Cardinal's 31% revenue gain in the first nine months of 2012. Deposits advanced 21% in the September quarter, while loans increased 16% on strong growth in real estate construction.

The stock has rallied 34% since March, but still looks cheap at 11 times trailing earnings, 33% below its three-year average and 20% below the median for regional banks in the S&P 1500 Index. Washington's healthy housing market bodes well for Cardinal's mortgage-banking business.

Rising consensus estimates project growth in per-share profits of 50% in the December quarter and 39% in the March quarter. Cardinal is a Best Buy.

Neustar (NSR)
US and Canadian telecom providers route nearly all domestic calls through Neustar's directory services, giving the company a high proportion of recurring revenue.

Sales growth has exceeded 15% in seven straight quarters-and 35% in the first three quarters of 2012.