Shares of SAP SE (SAP, Financial), ICICI Bank Limited (IBN, Financial) and Aptiv PLC (APTV, Financial) have performed strongly so far this year and over the past several years, beating the S&P 500 index (the benchmark for U.S.-listed stocks) in the observed period.
The S&P 500 index increased by 27.2% year to date, by 25.4% in the past 12 months and by about 41% in the last three years through Dec. 16.
Shareholders are likely to see share prices of these large-cap stocks will continue to move higher as their main catalyst, which is represented by profitable operations, will most likely still work for several years to come. GuruFocus rated the profitability of the following three stocks with positive scores.
Wall Street sell-side analysts have also released positive recommendation ratings that fall in the range of overweight to buy for these stocks.
SAP SE
Shares of SAP SE have gained 40% so far this year, 39.3% over the last 52 weeks and 64% over the past three years through Dec. 16, beating the S&P 500 by 13%, 14% and 23%, respectively.
The German software application company paid an annual dividend of $1.674 per common share on May 28, 2019, which generates a 1.2% dividend yield as of Monday’s closing price of $139.39.
GuruFocus assigned a positive rating of 6 out of 10 for the company's financial strength and a very high rating of 9 out of 10 for its profitability.
Regarding profitability, SAP has a net profit margin of 12.58% versus the industry median of 2.5%.
The stock has a price-earnings ratio of 44.07, a price-sales ratio of 5.53 and a price-book ratio of 4.94. These ratios, together with below Peter Lynch chart, suggest that this stock is not cheap.
Sell-side analysts issued an overweight recommendation rating for SAP SE with an average target price of $149.91 per unit.
ICICI Bank
Shares of ICICI Bank Limited have risen 47.6% year to date, 47.9% over the last 12 months and 122.7% over the past three years through Dec. 16, beating the S&P 500 by 20.4%, 22.5% and 81.7%, respectively.
The Mumbai, India-based regional bank paid a 2.9 cents annual cash dividend per common share to its shareholders in July 2019, which produces a dividend yield of 0.19% based on Monday’s closing share price of $15.19.
GuruFocus rated the company's financial strength with a low score of 2 out of 10 and its profitability with a positive score of 5 out of 10.
With regard to profitability, ICICI Bank Limited shows an impressive three-year revenue growth rate of 10.5%, topping 1,045 out of a total of 1,332 industry competitors.
The stock has a price-earnings ratio of 58.68, a price-sales ratio of 4.69 and a price-book ratio of 2.97. These ratios, along with the Peter Lynch chart, suggest that the stock is not cheap.
Wall Street sell-side analysts recommend a buy rating for shares of ICICI Bank Limited with an average target price of $16.22 per unit.
Aptiv PLC
Shares of Aptiv PLC have risen 54.2% year to date, 49.8% over the last 12 months and 66.5% over the past three years through Dec. 16, beating the S&P 500 by 27%, 24.4% and 25.5%, respectively.
The Irish manufacturer of auto parts and tech solutions paid a 22 cents quarterly cash dividend per common share to its shareholders on Nov. 20, 2019, which produces a dividend yield of 0.93% based on the share price of $94.96 at close on Monday.
GuruFocus assigned a positive rating of 5 out of 10 for the company's financial strength and a very high rating of 8 out of 10 rating for its profitability.
The company has a net profit margin of 6.99% versus the industry median of 2.94%.Â
The stock has a price-earnings ratio of 24.39, a price-sales ratio of 1.71 and a price-book ratio of 6.81. These ratios, together with the Peter Lynch chart, suggest that the stock is not cheap.
Wall Street sell-side analysts issued an overweight recommendation rating for shares of Aptiv PLC with an average target price of $99.91 per unit.
Disclosure: I have no positions in any securities mentioned.
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