This Trio of Strong Performers Is Likely to Trade Higher
Shareholders of Sun Communities Inc (NYSE:SUI), Cohen & Steers Inc (NYSE:CNS) and Thomson Reuters Corporation (NYSE:TRI) have seen their holdings outperform the S&P 500 index, which is the benchmark for the U.S. market, by wide margins over several years.
The S&P 500 grew 25.9% over the past 52 weeks, 20.4% over the past two years and 46.2% over the past three years through Jan. 23.
An essential catalyst to the share prices of these stocks over the observed period has been their high profitability, which GuruFocus has rated with high scores. If these companies can remain profitable in the years to come, investors may see rising share prices as long as the economic expansion continues.
These companies have also received positive recommendation ratings from Wall Street analysts.
Sun Communities
Shares of Sun Communities Inc have gained 49.8% over the last 52 weeks, 79.8% over the past two years and 104.9% over the past three years through Jan. 23, outperforming the S&P 500 by 23.9%, 59.4% and 58.7%, respectively.
The Southfield, Michigan-based real estate investment trust with interests in manufactured housing and recreational vehicle communities has also paid quarterly dividends over the observed periods. The most recent quarterly dividend of 75 cents per common share was paid on Jan. 15. Based on a $157.11 share price at close on Thursday, the quarterly dividend generates a 1.91% dividend yield on a forward and trailing 12-month basis.
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.
Sun Communities' operating margin of 24.5% is quite high with reference to its past decade of values and is expanding. Margin expansion is usually seen as a good sign.
The stock has a market capitalization of $14.56 billion, a price-earnings ratio of 98.19, a price-sales ratio of 11.2 and a price-book ratio of 4.07. These ratios, together with the below Peter Lynch chart, indicate that the stock is not cheap.
Wall Street sell-side analysts issued an overweight recommendation rating with an average target price of $161.29 per share.
Cohen & Steers
Shares of Cohen & Steers Inc have gained 78.9% over the last 52 weeks, 67% over the past two years and 96% over the past three years through Jan. 23, outperforming the S&P 500 by 53%, 46.6% and 49.8%, respectively.
The New York-based asset management company has also paid quarterly dividends over the years in question. Currently, the quarterly cash dividend is 36 cents per common share, which, based on Thursday's closing share price of $73.48, generates a 2.15% forward dividend yield and 1.97% trailing 12-month dividend yield. The most recent quarterly dividend was paid on Dec. 3, 2019.
GuruFocus rated the company's financial strength with a positive score of 6 out of 10 and its profitability with a high score of 8 out of 10.
Concerning Cohen & Steers' profitability, the company tops more than 55% of industry competitors in terms of higher operating margin (38.98% versus the average of 14.32%) and higher net margin (32.77% versus the average of 23.77%). It also outperforms more than 95% of industry competitors in terms of a higher return on equity (51.1% versus the average of 3.73%) and a higher return on assets (30.73% versus the average of 1.7%).
The stock has a market capitalization of $3.47 billion, a price-earnings ratio of 26.43, a price-sales ratio of 8.92 and a price-book ratio of 12.45. The below Peter Lynch chart indicates that the current share price is above the earnings line.
Among Wall Street sell-side analysts, two recommended buys, two recommended holds and one issued an underperform rating. The average target price is $63.33 per share.
Thomson Reuters
Shares of Thomson Reuters Corporation have grown 54.3% over the last 52 weeks, 86% over the past two years and 80.4% over the past three years through Jan. 23, outperforming the S&P 500 by 28.7%, 58.4% and 34.2%, respectively.
The Canadian provider of news and information-based tools to professionals has also paid quarterly dividends over the years observed. Currently, Thomson Reuters pays a quarterly dividend of 36 cents per common share, which generates 1.83% forward dividend yield and 1.82% trailing 12-month dividend yield as of Thursday when the share price closed at $78.77. The most recent quarterly payment was made on Dec. 16, 2019.
GuruFocus assigned a positive rating of 6 out of 10 for the company's financial strength and for its profitability.
Regarding profitability, Thomson Reuters beats more than 87% of industry competitors in terms of higher operating margin (19.05% versus the average of 5.22%) and higher net margin (62.86% versus the average of 3.27%). The stock also beats 95% of industry competitors in terms of a higher return on equity (38.55% versus the average of 8.29%) and a higher return on assets (19.97% versus the average of 3.21%).
The stock has a market capitalization of $39.57 billion, a price-earnings ratio of 11.52, a price-sales ratio of 7.29 and a price-book ratio of 4.55. Along with these ratios, the Peter Lynch chart also indicates that the stock is not cheap.
Wall Street recommends holding shares of Thomson Reuters. Six analysts suggested buying the stock, nine suggesting holding and two issued an underperform rating.
Disclosure: I have no positions in any securities mentioned.
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This article first appeared on GuruFocus.
