Growing a company's market share in the current economy is tough, particularly in the United States. In order to steal market share from competitors, a company has two choices. It can either lower prices or offer better value, depending on the goods or services involved.
Either way, market share growth is evidence of a company with an advantage over its peers. And as the U.S. economy increasingly shows signs of a recovery, any advantage has a good chance of contributing to the company's bottom line.
What we're looking for Companies that have substantially increased their market share against their peers over the past year.
This screen comes courtesy of Bloomberg's Constantin Cosereanu, and is based on the following criteria:
- U.S.- and Canadian-listed companies;
- a market cap greater than $100-million;
- and a market share increase of greater than 10 per cent.
What we found The screen delivered stocks from six sectors: consumer discretionary; energy; financials; health care; information technology and materials.
The results are sorted by sector and illustrate the companies with the fastest growing market share.
The growth leader by far is Milton, Ont.-based SXC Health Solutions Corp., with one-year growth of 58.7 per cent. SXC's stock has gone from $9.68 in December, 2008, to $71.46 as of Wednesday's close.
Apple Inc. finds itself in the unfamiliar role of second spot (overall) in our screen, posting market share growth of 45.1 per cent.
It should be pointed out that an increasing market share in an uncertain economy is no guarantee of continued growth in a recovery. However, a company that can grab a bigger piece of a shrinking pie should stand to benefit when the pie gets bigger.
As usual, you should do your own research before investing in any of these names.