Shareholders of Zoetis Inc (ZTS, Financial), Shiseido Company Limited (SSDOY, Financial) and TransUnion (TRU, Financial) have reason to be satisfied as their holdings have delivered large gains over the past several years, topping the S&P 500 index significantly.
Their ability to generate higher than expected earnings has led their share prices higher is reflected by their GuruFocus profitability score, which measures varios aspects of a company's ability to turn profits.
Wall Street expects these stocks to continue performing well, as its sell-side analysts have issued an overweight recommendation rating for all three of them.
Zoetis
Shares of Zoetis Inc have risen 65% over the last 52 weeks, 154.4% over the past three years and 210.4% over the past five years through Jan. 14, outperforming the S&P 500 by 39.2%, 110% and 150.4%, respectively.
The Parsippany, New Jersey-based developer, manufacturer and marketer of animal health medicines, cures and diagnostic products has paid quarterly dividends over the periods in question. Zoetis will pay the next quarterly cash dividend of 20 cents per common share on March 3, generating a 0.59% forward dividend yield and a 0.48% trailing 12-month dividend yield based on the share price of $137.27 at close on Tuesday.
GuruFocus assigned a moderate rating of 5 out of 10 for the company's financial strength and a high score of 8 out of 10 for its profitability.
Regarding its profitability, Zoetis has a net margin of 23.76% (which surpasses the industry median of 3.49%), a return on equity of 62.39% (which surpasses the industry median of 3.84%) and a return on total assets of 13.43% (which surpasses the industry median of 1.53%).
The stock has a market capitalization of $65.38 billion, a price-earnings ratio of 45.3 and a price-sales ratio of 10.78. In addition to these ratios, the below Peter Lynch chart also indicates that shares are not cheap.
Wall Street sell-side analysts issued an overweight recommendation rating with an average target price of $142.58 per share.
Shiseido
Shares of Shiseido Company Limited have risen 29% over the last 52 weeks, 170.2% over the past three years and 377.3% over the past five years through Jan. 14, outperforming the S&P 500 by 3.2%, 125.7% and 317.3%, respectively.
The Japanese producer and seller of cosmetic products has paid semi-annual dividends over the observed periods. The last semi-annual cash dividend of 28.3 cents per common share was paid on Sept. 13, 2019. Based on a $72.55 share price at close on Tuesday, the payment produces a 0.78% forward dividend yield and a 0.71% trailing 12-month dividend yield.
GuruFocus assigned a positive rating of 7 out of 10 for the company's financial strength and 7 out of 10 for its profitability.
Shiseido stands out amid its competitors with a net margin of 6.15% versus the industry median of 2.98%, a return on equity of 14.7% compared to the industry median of 5.92% and a return on total assets of 6.68% versus the industry median of 2.78%.
The stock has a market capitalization of $28.98 billion, a price-earnings ratio of 45.4, a price-sales ratio of 2.79 and a price-book ratio of 6.43. These ratios, along with the below Peter Lynch chart, suggest the stock is not cheap.
Wall Street sell-side analysts issued an overweight recommendation rating with an average target share price of $78.42.
TransUnion
Shares of TransUnion have risen 57% over the last 52 weeks, 179.4% over the past three years and 257% over the past five years through Jan. 14, outperforming the S&P 500 by 31.2%, 135% and 197%, respectively.
The Chicago-based provider of risk and information services solutions has paid quarterly dividends over the past two years. Currently, the quarterly cash dividend is 7.5 cents per common share, which produces a 0.33% yield for both the forward dividend and the trailing 12-month dividend based on the $90.59 share price at close on Jan. 14. The last cash quarterly dividend was paid on Dec. 12, 2019.
GuruFocus assigned a low rating of 3 out of 10 for the company's financial strength but a positive rating of 6 out of 10 for its profitability.
TransUnion draws the attention of investors in the business services industry as its net margin of 14.18% outperforms the industry median of 3.26% and its return on equity of 18.71% outperforms the industry median of 8.3%. Also, its return on total assets of 5.16% tops the industry median of 3.21%.
The stock has a market capitalization of $17.06 billion, a price-earnings ratio of 47.43, a price-sales ratio of 6.71 and a price-book ratio of 8.37. These ratios, together with the below Peter Lynch chart, suggest that this stock is not cheap.
Wall Street sell-side analysts issued an overweight recommendation rating with an average target share price of $91.20.
Disclosure: I have no positions in any securities mentioned.
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