1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (1973) 

These Stocks Saw Earnings Grow Fast

Their five-year EPS growth rates topped that of the S&P 500

March 25, 2020 | About:

Investors may want to have a look at stocks that have beaten the S&P 500 index (the benchmark for the U.S. market) in terms of a higher earnings per share (EPS) growth rate over the past few years, as these stocks are more likely to represent high-quality companies.

The S&P 500 has grown its EPS by about 6.5% every year over the past five years, resulting in an almost 20% jump in its value (which was around 2,447.33 at close on Tuesday, March. 24).

Past performance is not a guarantee for future results. However, it can be a helpful tool in identigying investment opportunities.

Thus, investors may want to consider Apple Inc (NASDAQ:AAPL), Moody's Corporation (NYSE:MCO) and Service Corp International (NYSE:SCI), as these companies have a five-year EPS without non-recurring items (NRI) growth rate of more than 6.5%.

Apple Inc

The Cupertino, California-based technology giant has grown its trailing 12-month EPS without non-recurring items by 11.9% every year over the past five full fiscal years. The share price ($246.88 as of March 24) has increased by 98.7% over the past five years.

The stock has a market capitalization of $1.08 trillion, a price-earnings ratio of 19.48 versus the industry median of 13.83 and a price-sales ratio of 4.18 versus the industry median of 0.76.

Wall Street recommends an overweight rating for this stock with an average price target of $321.91 per share.

GuruFocus assigned a positive rating of 6 out of 10 for the company’s financial strength and the highest rating of 10 out of 10 for its profitability.

Moody's Corporation

The New York-based credit ratings agency has grown its trailing 12-month EPS without NRI by 14.8% every year over the past five full fiscal years. On the tailwind of this, the share price ($195.75 as of March 24) increased by 91.7%.

The stock has a market capitalization of $36.65 billion, a price-earnings ratio of 26.37 compared to the industry median of 13.4 and a price-sales ratio of 7.75 versus the industry median of 2.38.

Wall Street recommends an overweight rating for this stock and has established an average price target of $243.20 per share.

GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and the highest profitability rating of 10 out of 10.

Service Corp International

The Houston, Texas-based provider of funeral products and services in North America has grown its trailing 12-month EPS without NRI by 25.5% every year over the past five full fiscal years. Following this, the share price ($37.48 as of March 24) rose by nearly 43%.

The stock has a market capitalization of $6.78 billion, a price-earnings ratio of 18.83 versus the industry median of 14.64 and a price-sales ratio of 2.15 compared to the industry median of 0.85.

Wall Street recommends a buy rating for this stock and has established an average price target of $55.25 per share.

GuruFocus assigned a low score of 3 out of 10 to the company’s financial strength rating and a very high score of 9 out of 10 to the company’s profitability rating.

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

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)