3 Stocks Growing Earnings Fast

Their 5-years EPS growth rates are higher than that of the S&P 500

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The S&P 500 saw its trailing 12-month real earnings per share (EPS) grow by approximately 1% on average every year over the past five years. The index's share price ($3,694.92 as of Monday) increased by approximately 79.3% over the past five years through Dec. 21.

Thus, investors may want to consider HDFC Bank Ltd ADR (HDB, Financial), Exact Sciences Corp (EXAS, Financial) and Herbalife Nutrition Ltd (HLF, Financial), as these companies have beaten the S&P 500 in terms of a higher five-year annual EPS growth rate over the period in question.

HDFC Bank Ltd ADR

The Mumbai, India-based bank with operating activities in India, Bahrain, Dubai and Hong Kong saw its trailing 12-month EPS without non-recurring items (NRI) increase by 16% on average every year over the past five years.

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The share price soared 126.6% over the past five years to trade at $68.35 at close on Monday for a market capitalization of $125.43 billion, a 52-week range of $29.50 to $70.95 and a price-earnings ratio of 26.25.

Among the top fund holders of the company, JPMORGAN CHASE & CO is the leader with 2% of shares outstanding. It is followed by WCM INVESTMENT MANAGEMENT/CA with 1.36% of shares outstanding and MORGAN STANLEY with 0.86% of shares outstanding.

On Wall Street, the stock has a buy recommendation rating with an average target price of $58.82 per share.

Exact Sciences Corp

The Madison, Wisconsin-based provider of cancer screening and diagnostic test solutions to hospitals and other healthcare organizations in the U.S. and internationally saw its trailing 12-month EPS without NRI increase by 11.8% on average every year over the past five years.

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The share price closed at $141.04 on Monday, representing a more than a 15-fold increase from five years ago. The stock has a market capitalization of $21.22 billion, a 52-week range of $35.25 to $142.90 and no price-earnings ratio due to the recent net loss.

PRICE T ROWE ASSOCIATES INC /MD/ dominates the group of top fund holders with 13.33% of shares outstanding. It is followed by The Vanguard Group Inc. with 8.93% of shares outstanding and Blackrock Inc. with 5.18% of shares outstanding.

On Wall Street, the stock has a buy recommendation rating with an average target price of $151.50 per share.

Herbalife Nutrition Ltd

The Los Angeles, California-based provider of nutrition solutions in North America and internationally saw its trailing 12-month EPS without NRI increase by 3.3% on average every year over the past five years.

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The share price increased by nearly 73% over the past five years to trade at $47.74 at close on Monday for a market capitalization of $5.81 billion, a 52-week range of $20.73 to $52.89 and a price-earnings ratio of 18.5.

Amid the top fund holders of the company, Carl Icahn is the leader with 16.86% of shares outstanding. The guru is followed by Capital Research Global Investors with 15.13% of shares outstanding and Jim Simons with 9.03% of shares outstanding.

On Wall Street, the stock has a buy recommendation rating with an average target price of $65 per share.

Disclosure: I have no positions in any securities mentioned in this article.

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