I was recently looking for reasonably priced growth stocks. The criteria I used were a high 5-year revenue growth and a high return on invested capital. To narrow down the list, I favored companies with low debt and reasonable valuation (in terms of P/E ratio and Price/Book value). Furthermore, I weeded out companies with very low market capitalizations and companies currently facing serious financial or operational problems, including all companies associated with the real estate market.
The ultimate survivor of this process was Syneron Medical Ltd. (ELOS), an Israeli company which makes non-invasive aesthetic medical products using proprietary electro-optical technology. Its products are used for a wide range of aesthetic applications, such as hair removal, wrinkle reduction, rejuvenation of the skin’s appearance and treatment of cellulite.
Posted by Arnbjorn Ingimundarson 
