3 Stocks With Fast-Growing Earnings
Rising earnings move share prices up.
The S&P 500 Index has grown its annual earnings per share (not adjusted to inflation) by 32.5% over the past five years (about a 6.5% increase every year), producing a 65.2% increase in the share price to close at $3,295.47 on Friday.
Past performance is not a guarantee for future results, but the following stocks, which have outperformed the S&P 500 in terms of a higher five-year earnings per share growth rate, are set to keep on posting share price gains in the years to come, according to Wall Street sell-side analysts.
In fact, analysts have released positive recommendation ratings of overweight to buy for all three of them.
To provide investors with a reliable estimate of future earnings growth, this search accounts for earnings per share without non-recurring items, as this metric excludes one-time costs.
Duke Realty
The chart below illustrates that Duke Realty Corp. (NYSE:DRE) has grown its trailing 12-month earnings per share without non-recurring items by 58.7% over the past five years. Following this, Duke Realty's share price increased by 61.2% to close at $36.1 on Friday.
The Indianapolis-based real estate investment trust, which owns and operates nearly 160 million rentable square feet of industrial warehouses, has a market capitalization of $13.27 billion and a price-earnings ratio of 32.23 versus the industry median of 18.42. The price-sales ratio is 12.97 compared to the industry median of 8.13.
Wall Street recommends an overweight rating, which means the stock is expected to outperform. The stock has an average target price of $37.03 per share.
GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a positive rating of 6 out of 10 for its profitability.
Sabre
The chart below illustrates that Sabre Corp. (NASDAQ:SABR) has grown its trailing 12-month earnings per share without non-recurring items by 61.2% over the last five years, pushing the share price up nearly 14% over the same time period. Shares closed at $22.68 on Friday.
The Southlake, Texas-based provider of technology solutions to travelling and touristic companies has a market cap of $6.21 billion, a price-earnings ratio of 27.33 versus the industry median of 27.02 and a price-sales ratio of 1.59 versus the industry median of 2.3.
Wall Street recommended an overweight rating with an average price target of $26.25 per share.
GuruFocus assigned a low financial strength rating of 3 out of 10, but a positive profitability rating of 6 out of 10 to the company.
LeMaitre Vascular
The chart below shows that LeMaitre Vascular Inc. (NASDAQ:LMAT) has grown its trailing 12-month earnings per share without non-recurring items by 44.5% over the last five years, which has determined a 373.2% boost in the share price over the period in question. The shares closed at $36.48 on Friday.
The Burlington, Massachusetts-based designer and marketer of medical devices and implants to treat peripheral vascular disease has a market capitalization of $729.28 million and a price-earnings ratio of 38.4 versus the industry median of 31.9. The price-sales ratio of 6.4 compares to the industry median of 3.57.
Wall Street issued a buy rating for the stock with an average price target of $36.57.
GuruFocus assigned a very high rating of 9 out of 10 for the company's financial strength and a positive rating of 7 out of 10 for its profitability.
Disclosure: I have no positions in any securities mentioned in this article.
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This article first appeared on GuruFocus.
