Seeking Stocks with Inner Drive

Loomis Sayles Growth Fund's Richard Skaggs says he favors potential market leaders with internal revenue growth boosting profit expansion

Brisk earnings advances, thanks mainly to internal revenue generation rather than cost cutting -- that's a key feature of companies that managers of the Loomis Sayles Growth Fund (LGRRX ) are interested in. Using a discounted cash-flow model, the fund invests in larger-cap stocks with annual earnings-per-share growth of at least 11% and upward profit revisions.

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