NEW YORK, NY Aug. 13, 2000 – Calpine Corporation has earned the No. 3 spot in Fortune’s list of fastest-growing American companies, according to the magazine.
Calpine was listed as the third fastest growing U.S. company in the report behind 4Kids Entertainment, the maker of Pokemon products, and Siebel Systems, a company whose software coordinates sales, marketing and customer service.
As part of its coverage on growth stocks and their companies, Fortune also assessed those industry sectors with an emphasis on price/earnings ratios and slow but steady growth. In a companion article to the Fastest Growing Companies list, FORTUNE’s David Stires provides a list of five companies whose profits and share price are still gaining altitude, chosen from those sectors likely to see the greatest expansion: energy, financial services, health care, services, and technology.
In the energy sector, and with earnings projected to grow 34% a year for the next five years, Calpine–which is embarking on the largest power plant construction kick in U.S. history–is anything but a boring utility.
Many expect the company’s aggressive buildout to drive revenue and earnings growth for years to come. In the financial services sector, Affiliated Managers Group has become a powerhouse holding company of midsized money-management firms, with a market cap of $1.3 billion. The company’s diversified revenue stream should help it to prosper no matter what investing style is in vogue.
The list of America’s Fastest Growing Companies was compiled by Zacks Investment Research. To make the list, companies had to be based in the U. S., be publicly traded for at least three years, and have revenue and market cap of at least $50 million. At a minimum, firms had to show 30% annual growth over three years in revenue and EPS, and positive earnings in the latest quarter and for the last four combined. The final order derives from the sum of the rankings of growth in revenues, EPS, and total stock market return over three years.
The list of fastest-growing companies, along with related stories, appears in the September 3 issue of FORTUNE, available on newsstands August 20, and at www.fortune.com on August 13.