ACADIA Pharmaceuticals Inc. (ACAD), Rite Aid Corporation (RAD) & More: Are These Top Performers Still a “Buy”?

While many are skeptical of Restoration Hardware Holdings Inc (NYSE:RH)’s 145% post-IPO gains since November 2012, people need to keep in mind that it is trading at just two times this year’s sales. Home Depot trades at 1.5 times sales, but is also growing at just 2-3% year-over-year. Therefore, with a market cap of just $3 billion and significant room to expand, I believe that Restoration Hardware Holdings Inc (NYSE:RH) has a great deal of room to grow long-term.

Is This Still a Value Play?

Responsys Inc (NASDAQ:MKTG) is a company that not many people talk about, but the online marketing company is consistently producing growth of 20% year-over-year. Last year the stock saw significant losses but has produced an incredible gain of 140% in 2013 after being oversold to start the new year.

With that said, I am taking profits off the table with this holding. When I bought it, I considered Responsys Inc (NASDAQ:MKTG) a value play, but I no longer see such value. It is now trading at 4 times sales with a P/E ratio of 110. While it may still trade higher short-term, I feel confident with the gains I have returned and believe the risk is not worth the reward for this volatile stock.

Final Thoughts

The best of investors are constantly able to reassess their holdings, and maintain a short-term memory track to easily seek the best opportunities. After having a great year in 2013, I am reassessing my positions and am trying to find new and better alternatives. But in the case of Restoration Hardware Holdings Inc (NYSE:RH), Rite Aid Corporation (NYSE:RAD), and ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), I still think the best days are yet to come.

Brian Nichols is long RAD, ACAD, RH. The Motley Fool has no position in any of the stocks mentioned.

The article Are These Top Performers Still a “Buy”? originally appeared on Fool.com.

Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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