6 Stocks Boosting Earnings

Companies increasing their profitability

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Mar 20, 2018
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Companies growing their earnings per share are often good investments, as they can return a solid profit to investors. The following companies have grown their earnings over a three-year period.

The earnings per share of Coherent Inc. (COHR) have grown 52.8% annually over the past three years.

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The supplier of photonics-based solutions in commercial and scientific research applications has a market cap of $5.12 billion and an enterprise value of $5.21 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity (ROE) of 20.51% and return on assets (ROA) of 9.80% are outperforming 84% of companies in the Global Scientific and Technical Instruments industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 0.83 is below the industry median of 1.37.

Another notable shareholder of the company among the gurus is Jim Simons (Trades, Portfolio) with 1.07% of outstanding shares followed by Chuck Royce (Trades, Portfolio) with 0.55% and Pioneer Investments (Trades, Portfolio) with 0.19%.

Sensata Technologies Holding N.V. (ST)’s earnings per share have grown 12.80% over the past three years.

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The industrial technology company has a market cap of $8.9 billion and an enterprise value of $11.42 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The ROE of 19.29% and ROA of 6.35% are outperforming 69% of companies in the Global Scientific and Technical Instruments industry. Financial strength is rated 5 out of 10. The cash-debt ratio of 0.23 is below the industry median of 1.37.

John Griffin (Trades, Portfolio) is another notable shareholder of the company among the gurus with 2.11% of outstanding shares followed by Glenn Greenberg (Trades, Portfolio) with 0.96%.

The earnings per share of Apple Inc. (AAPL) have grown 12.60% over the past three years.

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The company designs, manufactures and markets mobile communication and media devices and personal computers. It has a market cap of $897.19 billion and an enterprise value of $942.43 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. Its ROE of 37.53% and ROA of 14.09% are outperforming 93% of companies in the Global Consumer Electronics industry. Financial strength is rated 6 out of 10. The cash-debt ratio of 0.63 is below the industry median of 1.37.

The largest guru shareholder is Warren Buffett (Trades, Portfolio) with 3.26% of outstanding shares followed by Pioneer Investments (Trades, Portfolio) with 0.26%.

Tyler Technologies Inc. (TYL)’s earnings per share have grown 36% annually over the past three years.

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The provider of integrated information management solutions and services has a market cap of $7.96 billion and an enterprise value of $7.73 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. Its ROE of 15.93% and ROA of 11.33% are outperforming 71% of companies in the Global Software – Application industry. Financial strength is rated 9 out of 10 with no debt.

Simpson is the largest guru shareholder with 2.36% of outstanding shares followed by Mario Gabelli (Trades, Portfolio) with 0.28%.

The earnings per share of CVS Health Corp. (CVS) have grown 17.70% per year over the past three years.

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The company operates in the health care sector. Its primary business is that of operating retail pharmacies. It has a market cap of $69.3 billion and an enterprise value of $94.5 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. Its ROE of 18.66% and ROA of 7.08% are outperforming 61% of companies in the Global Health Care Plans industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.07 is below the industry median of 1.61.

The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 1.53% of outstanding shares followed by Larry Robbins (Trades, Portfolio) with 0.67% and PRIMECAP Management (Trades, Portfolio) with 0.33%.

The earnings per share of Capital Bank Financial Corp. Class A (CBF) have grown 20.60% annually over the past three years.

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The bank holding company has a market cap of $2.17 billion and an enterprise value of $2.58 billion. It offers a range of commercial and consumer loans and deposit products.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. Its ROE of 6.55% and ROA of 0.86% are underperforming 83% of companies in the Global Banks - Regional - US industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.31 is below the industry median of 2.10.

Disclosure: I do not own any shares of any stocks mentioned in this article.