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Alberto Abaterusso
Alberto Abaterusso
Articles (2207) 

A Trio of Stocks Growing Earnings Fast

Novo Nordisk A/S tops the list

March 04, 2020 | About:

Growing earnings can often push share prices up. The S&P 500 Index, which is a benchmark for the U.S. market, has grown its annual earnings per share (not adjusted for inflation) by about 6.5% every year over the past five years. On the tailwind of this, the share price of the index increased by nearly 49% over the past five years, closing at a price of $3,003.37 on March 3, 2020.

Past performance is not a guarantee of future results, but it does indicate that a company has a better foundation on which to grow.

As a result of strong past results, Wall Street sell-side analysts have released bullish recommendation ratings for Novo Nordisk A/S (NYSE:NVO), Booz Allen Hamilton Holding Corp (NYSE:BAH) and Otter Tail Corp (NASDAQ:OTTR).

Novo Nordisk

The Danish biotechnology company has grown its trailing 12-month earnings per share without non-recurring items by nearly 8% every year over the past five full fiscal years. As a result, the share price ($61.50 as of March 3) has risen by 35% over the past five years.

The stock has a market capitalization of $144.40 billion, a price-earnings ratio of 25.6 versus the industry median of 33.9 and a price-sales ratio of 8.17 versus the industry median of 10.39.

Wall Street recommends an overweight rating for shares of Novo Nordisk with an average price target of $64.49 per share.

GuruFocus assigned a high rating of 8 out of 10 for the companys financial strength and the highest rating of 10 out of 10 for its profitability.

Booz Allen Hamilton Holding Corp

Booz Allen Hamilton is a McLean, Northern Virginia-based provider of management and technology consulting, engineering and cyber solutions to U.S. and international entities.

The chart below shows that it has grown its trailing 12-month earnings per share without non-recurring items by nearly 12% every year over the past five full fiscal years, producing a 155% increase in the share price ($74.62 as of March 3).

The stock has a market capitalization of $10.46 billion, a price-earnings ratio of 24.39 versus the industry median of 15.65 and a price-sales ratio of 1.45 versus the industry median of 0.93.

Wall Street recommends an overweight rating for shares of Booz Allen Hamilton Holding Corp and has set a price target of $85.15 per share.

GuruFocus assigned the company a positive financial strength rating of 6 out of 10 and a high profitability rating of 8 out of 10.

Otter Tail Corp

The chart below shows that the Fergus Falls, Minnesota-based regional electric company has grown its trailing 12-month earnings per share without non-recurring items by 7.8% every year over the past five full fiscal years. On the tailwind of this, the share price ($49.45 as of March 3) increased by nearly 56%.

The stock has a market capitalization of $2.02 billion, a price-earnings ratio of 23.08 versus the industry median of 16.35 and a price-sales ratio of 2.19 versus the industry median of 1.38.

Wall Street recommends an overweight rating for shares of Otter Tail Corp and has established an average price target of $57 per share.

GuruFocus assigned a moderate rating of 4 out of 10 for the companys financial strength and a positive rating of 6 out of 10 for its profitability.

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

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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