The S&P 500 index saw its total sales grow at an annualized 4% rate over the past five years through Sept. 30, 2019. On the tailwind of this, the value of the benchmark for the U.S. market rose by nearly 45%.
The following companies have outperformed the benchmark over the past five years in this regard. As a result of higher growth per year, their stocks posted share price returns in the range of 35% to 120%.
The past is no guarantee of future performance, but no one can deny that stocks growing their sales faster than the market are doing something right.
Wall Street sell-side analysts have also issued positive recommendation ratings for these stocks.
Becton, Dickinson and Co
The first company that meets the above-listed search criteria is Becton, Dickinson and Co (BDX, Financial).
The Franklin Lakes, New Jersey-based developer, manufacturer and seller of medical instruments and supplies has grown its total revenue by nearly 15% over the past five years, resulting in a 66% share price increase.
The share price traded at $237.31 at close on March 10 for a market cap of $64.35 billion.
The stock has a price-earnings ratio of 87.25 and a price-sales ratio of 3.74. These ratios, along with the Peter Lynch chart below, indicate that this stock is not trading cheaply.
Wall Street sell-side analysts recommend an overweight rating for this stock with an average target price of $274.29.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a very high profitability rating of 9 out of 10.
Xylem
The second company that meets the above-listed criteria is Xylem Inc (XYL, Financial).
The Rye Brook, New York-based provider of engineered solutions for water and wastewater applications has grown its total revenue by 8.2% in the past five years, which produced an 118% rise in the share price.
The stock traded around a price of $76.79 per share at close on March 10 for a market cap of $13.84 billion, a price-earnings ratio of 34.75 and a price-sales ratio of 2.65. These ratios, together with the below Peter Lynch chart, suggest that the stock is not at its cheapest.
Wall Street sell-side analysts recommend a hold rating for this stock with an average target price of $81.65 per share.
GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a very high profitability rating of 9 out of 10.
Internet Initiative Japan
The third company that meets the above-listed criteria is Internet Initiative Japan Inc ADR (IIJIY, Financial).
The Japanese telecommunication services company has grown its total revenue by 11.4% in the past five years, determining a 36% increase in the share price.
The share price closed at $14.14 on March 10 for a market capitalization of $1.28 billion. The stock has a price-earnings ratio of 41.58 and a price-sales ratio of 0.69. The Peter Lynch chart and the price-earnings ratio show that the stock doesn`t trade cheaply.
Wall Street sell-side analysts have recommended an overweight rating for this stock and established an average target price of $14.77.
GuruFocus assigned the company a positive financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10.
Disclosure: I have no positions in any securities mentioned in this article.
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