Service stocks are characterized by cyclic business models, low margins and partially high growth due to the business cycle. The whole sector has a total market capitalization of USD46.3 trillion. The average company has a P/E ratio of 20.45 as well as a Dividend yield of 1.83%.
In order to find some opportunities, I screened the sector by dividend stocks with an earnings growth of more than ten% over the past five years. In order to catch only those stocks with a gaining earnings momentum, I observed only those stocks with quarter-over-quarter sales and earnings per share growth of more than 20%. Exactly 11 companies fulfilled these criteria of which one is a high yield; 9 are recommended to buy.
Here are my favorite stocks:
Comcast Corporation (CMCSA, Financial) has a market capitalization of $78.4 billion. The company employs 126,000 people, generates revenues of $55,842 million and has a net income of $5,157.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,357.00 million. Because of these figures, the EBITDA margin is 32.87% (operating margin 19.20% and the net profit margin finally 9.23%).
The total debt representing 24.91% of the company’s assets and the total debt in relation to the equity amounts to 83.15%. Due to the financial situation, a return on equity of 9.08% was realized. Twelve trailing months earnings per share reached $1.50. Last fiscal year, the company paid $0.45 in the form of dividends to shareholders. Quarter over quarter, sales are up 54.74% and earnings 29.15%.
Here are the price ratios of the company: The P/E ratio is 19.30, P/S ratio 1.38 and P/B ratio 1.64. Dividend yield: 2.27%. The beta ratio is 1.05.
Tractor Supply Company (TSCO, Financial) has a market capitalization of $6.58 billion. The company employs 8,700 people, generates revenues of $4,232.74 million and has a net income of $222.74 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $433.05 million. Because of these figures, the EBITDA margin is 10.23% (operating margin 8.33% and the net profit margin finally 5.26%).
The total debt representing 0.08% of the company’s assets and the total debt in relation to the equity amounts to 0.13%. Due to the financial situation, a return on equity of 22.94% was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $0.43 in form of dividends to shareholders. Quarter over quarter, sales are up 20.08% and earnings 44.04%.
Here are the price ratios of the company: The P/E ratio is 30.58, P/S ratio 1.54 and P/B ratio 6.42. Dividend yield: 0.53%. The beta ratio is 0.82.
Mercadolibre (MELI, Financial) has a market capitalization of $4.21 billion. The company employs 1,633 people, generates revenues of $298.93 million and has a net income of $76.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $107.04 million. Because of these figures, the EBITDA margin is 35.81% (operating margin 33.38% and the net profit margin finally 25.69%).
The total debt representing 0.08% of the company’s assets and the total debt in relation to the equity amounts to 0.13%. Due to the financial situation, a return on equity of 39.28% was realized. Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, the company paid $0.35 in form of dividends to shareholders. Quarter over quarter, sales are up 38.75% and earnings 35.56%.
Here are the price ratios of the company: The P/E ratio is 54.79, P/S ratio 13.77 and P/B ratio 18.79. Dividend yield: 0.47%. The beta ratio is 1.90.
Take a closer look at the full table of services dividend stocks with accelerated earnings growth. The average price to earnings ratio (P/E ratio) amounts to 25.64 and forward P/E ratio is 15.72. The Dividend yield has a value of 1.64%. Price to book ratio is 5.54 and price to sales ratio 3.62. The operating margin amounts to 24.97%. Sales increased 35.25% compared to the figures from the same quarter last year (23.73% five-year average) and the earnings per share grew 51.68% quarter over quarter (44.11% five-year average).
Related stock ticker symbols:
TGH, CHRM, NRCI, CMCSA, FMCN, G, CBD, TSCO, MELI, WINA, WAB
Selected Articles:
• Services Stocks With Strongest Earnings Forecasts And Good Dividends
• Best Services Stock Picks For 2012
• 11 Low Volatility Stocks From Services Sector With Goods Dividends
• The Best Dividend Stocks From Service Sector
• 11 Service Dividend Stocks With Buy Or Better Rating
In order to find some opportunities, I screened the sector by dividend stocks with an earnings growth of more than ten% over the past five years. In order to catch only those stocks with a gaining earnings momentum, I observed only those stocks with quarter-over-quarter sales and earnings per share growth of more than 20%. Exactly 11 companies fulfilled these criteria of which one is a high yield; 9 are recommended to buy.
Here are my favorite stocks:
Comcast Corporation (CMCSA, Financial) has a market capitalization of $78.4 billion. The company employs 126,000 people, generates revenues of $55,842 million and has a net income of $5,157.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,357.00 million. Because of these figures, the EBITDA margin is 32.87% (operating margin 19.20% and the net profit margin finally 9.23%).
The total debt representing 24.91% of the company’s assets and the total debt in relation to the equity amounts to 83.15%. Due to the financial situation, a return on equity of 9.08% was realized. Twelve trailing months earnings per share reached $1.50. Last fiscal year, the company paid $0.45 in the form of dividends to shareholders. Quarter over quarter, sales are up 54.74% and earnings 29.15%.
Here are the price ratios of the company: The P/E ratio is 19.30, P/S ratio 1.38 and P/B ratio 1.64. Dividend yield: 2.27%. The beta ratio is 1.05.
Tractor Supply Company (TSCO, Financial) has a market capitalization of $6.58 billion. The company employs 8,700 people, generates revenues of $4,232.74 million and has a net income of $222.74 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $433.05 million. Because of these figures, the EBITDA margin is 10.23% (operating margin 8.33% and the net profit margin finally 5.26%).
The total debt representing 0.08% of the company’s assets and the total debt in relation to the equity amounts to 0.13%. Due to the financial situation, a return on equity of 22.94% was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $0.43 in form of dividends to shareholders. Quarter over quarter, sales are up 20.08% and earnings 44.04%.
Here are the price ratios of the company: The P/E ratio is 30.58, P/S ratio 1.54 and P/B ratio 6.42. Dividend yield: 0.53%. The beta ratio is 0.82.
Mercadolibre (MELI, Financial) has a market capitalization of $4.21 billion. The company employs 1,633 people, generates revenues of $298.93 million and has a net income of $76.80 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $107.04 million. Because of these figures, the EBITDA margin is 35.81% (operating margin 33.38% and the net profit margin finally 25.69%).
The total debt representing 0.08% of the company’s assets and the total debt in relation to the equity amounts to 0.13%. Due to the financial situation, a return on equity of 39.28% was realized. Twelve trailing months earnings per share reached a value of $1.74. Last fiscal year, the company paid $0.35 in form of dividends to shareholders. Quarter over quarter, sales are up 38.75% and earnings 35.56%.
Here are the price ratios of the company: The P/E ratio is 54.79, P/S ratio 13.77 and P/B ratio 18.79. Dividend yield: 0.47%. The beta ratio is 1.90.
Take a closer look at the full table of services dividend stocks with accelerated earnings growth. The average price to earnings ratio (P/E ratio) amounts to 25.64 and forward P/E ratio is 15.72. The Dividend yield has a value of 1.64%. Price to book ratio is 5.54 and price to sales ratio 3.62. The operating margin amounts to 24.97%. Sales increased 35.25% compared to the figures from the same quarter last year (23.73% five-year average) and the earnings per share grew 51.68% quarter over quarter (44.11% five-year average).
Related stock ticker symbols:
TGH, CHRM, NRCI, CMCSA, FMCN, G, CBD, TSCO, MELI, WINA, WAB
Selected Articles:
• Services Stocks With Strongest Earnings Forecasts And Good Dividends
• Best Services Stock Picks For 2012
• 11 Low Volatility Stocks From Services Sector With Goods Dividends
• The Best Dividend Stocks From Service Sector
• 11 Service Dividend Stocks With Buy Or Better Rating
