Proponents of income investing may not like it, but there is nothing like a growth portfolio portions of which can be sold at higher prices to rival benefits of a dividend portfolio. Buying at lower prices is also an effective strategy for stocks such as Gilead Sciences, Inc. (NASDAQ:GILD), Oasis Petroleum Inc. (NYSE:OAS), and Interactive Brokers Group, Inc. (NASDAQ:IBKR) which offer excellent earnings potential. Here is a closer look:

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Gilead Sciences, Inc. (NASDAQ:GILD) is a bio-pharmaceutical company that develops medicines for human immunodeficiency virus (HIV), liver diseases, such as hepatitis B and C and cardiovascular and respiratory conditions. With a market capitalization of $37 billion, the stock is among the most heavily traded ones and thus, it comes as something of a surprise that its price has doubled over the last 12 months.

This surge has been aided by strong earnings results and encouraging updates of its drug development program. In its latest update, the company reported results from four phase III studies named Neutrino, Fission, Positron and Fusion. The studies used the drugs on patients suffering from various genotypes of the chronic hepatitis C virus. In the quarter ended December 31, the company reported a 17.7 percent jump in revenues but it was the surge in net profit from $665 million to $762.5 million which made the market players buy this stock aggressively.

It has advanced 37 percent so far in 2013 and still trades at a forward price earnings of 17.6. Strong earnings visibility and a simplified capital structure are some of the factors which make analysts to rate the stock as ‘Buy’ or ‘Outperform’.

Oil – Down but not out

Another attractive area to look for bargains is oil and gas exploration and production where stocks have lately taken a beating following the drop in crude oil prices. Texas based Oasis Petroleum Inc. (NYSE:OAS) is an exploration and production company focused on shale resources in Montana and North Dakota regions of the Williston Basin.

The stock has dropped 11 percent over the month and now trades at attractive earnings multiples of 21 and 10.6 on trailing 12 months and forward basis. Forward earnings multiple of 10.6 may not be foolproof as this is evidently based on high oil price expectations but a low debt-equity ratio of 1.5 (going by the standards in the sector) offers some cushion to future earnings. This capital structure appears simple considering the fact that the company has grown its top line from $37 million in 2009 to $686.7 million in 2012. Profits have also grown in a liner fashion and so far its trajectory looks uninterrupted.

Finally, Interactive Brokers Group, Inc. (NASDAQ:IBKR) is a global electronic broker that offers its services on more than 100 electronic exchanges including in Canada, England, Switzerland, Hong Kong, India, Australia and Japan. Trading at a price earnings multiple of 19.6, the stock is placed at the upper range of its 52 week trading range of $12.74 – $15.24.

However, future earnings visibility makes the earnings multiple to drop considerably to 12.9. PE growth of 1.79 and a no-debt balance sheet are other positives with the stock. At the same time, its price is only a 19 percent premium on the book value, while price by sales ratio indicates a discount of 35 percent. The company also has a decent dividend yield of 2.7 percent which is expected to at least continue in the future, if not grow.

Overall, these high growth stocks are good fit for a growth oriented portfolio but may be coming at slightly high prices as is the case with Interactive Brokers Group, Inc. (NASDAQ:IBKR).

A market wide correction after the recent rally may be on cards which can potentially make these stocks look even more attractive.