Wall Street has issued hold recommendation ratings for NTT DOCOMO Inc (DCMYY, Financial), The Hershey Co (HSY, Financial) and Pope Resources LP (POPE, Financial).
These stocks have performed well over the past several years, topping the S&P 500 by significant margins. Their strong profitability has been a major driver of higher valuations.
NTT DOCOMO
Shares of NTT DOCOMO have risen 34.5% over the past year, 23.5% over the past three years and 63.2% over the past five years through March 20, topping the S&P 500 by 48.5%, 22.4% and 49%, respectively.
The Japanese telecom services company has also paid dividends over the period observed. In 2019, the company paid semi-annual dividends of 50.7 cents per common share on July 1 and 55 cents per common share on Dec. 6. The dividend yield is 3.53%, while the S&P 500 grants 2.53%.
NTT DOCOMO has an operating margin of 19.9% versus the industry median of 8.5% and a net margin of 12.8% versus the industry median of 4%. Also, the company has a return on equity of 11.2% versus the industry median of 6.2%.
The stock traded at a price of $29.96 per share at close on March 20 for a market capitalization of $97.09 billion. The stock has a price-earnings ratio of 18.05, a price-sales ratio of 2.31 and a price-book ratio of 2. These ratios indicate that the current share price is not the cheapest.
The Hershey Co
Shares of The Hershey Co have risen 4.7% over the last 12 months, 9% over the past three years and 17% over the past five years through March 20, topping the S&P 500 by 18.7%, 10.1% and 2.7%, respectively.
The Hershey, Pennsylvania-based manufacturer and seller of confectionery products in North America and internationally has also paid quarterly dividends over the observed period. Currently, the company pays 77.3 cents per common share, which produces a 2.58% dividend yield versus the S&P 500’s 2.53% as of March 20.
The Hershey Co has an operating margin of 21.5% versus the industry median of 4.7% and a net margin of 14.4% versus the industry median of 2.84%. Also, the company has a return on equity of 72% compared to the industry median of 5.5%.
The stock traded at a price of $117.73 per share at close on March 20 for a market cap of $17.4 billion. The stock has a price-earnings ratio of 21.6, a price-sales ratio of 3.11 and a price-book ratio of 14.14. These ratios indicate that the share price is currently not trading cheaply.
Pope Resources LP
Shares of Pope Resources LP have risen 22% over the past year, 8.4% over the past three years and 26% over the past five years through March 20, topping the S&P 500 by 36%, 7.3% and 11.7%, respectively.
The Poulsbo, Washington-based lumber and wood production company has also paid quarterly dividends over the observed period. Currently, the company pays $1 per common share, which, based on the share price of $145.64 at close on March 20, produces a dividend yield of 5.13% versus 2.53% for the S&P 500.
Pope Resources LP has a net margin of 2.04% versus the industry median of 2.63% and a return on equity of 4.05% versus the industry median of 4.42%.
The stock closed at a price of $78 per share on March 20 for a market capitalization of $340.64 million. The stock has a price-earnings ratio of 152.94, a price-sales ratio of 3.07 and a price-book ratio of 7.88. These ratios indicate that this stock is not at its cheapest at the moment.
Disclosure: I have no positions in any securities mentioned.
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