Rising sales is an essential catalyst to higher share prices. The total sales of the S&P 500 index have grown at an annualized rate of about 4% over the past five years, which pushed its share price up nearly 64% over the same period through the end of 2019.
The past is no guarantee of future performance, but having topped the benchmark for the U.S. market in terms of higher sales growth is a positive sign for the years ahead.
Wall Street sell-side analysts have also issued a positive recommendation rating of overweight for all three of them, which means that their share prices are predicted to outperform either their industries or the overall market.
FedEx
The first company to consider is FedEx Corp (FDX, Financial).
The Memphis, Tennessee-based provider of transportation, e-commerce and business services to individuals and companies worldwide has grown its total revenue per share by nearly 13% on average every year over the past five years.
The share price traded at $125.54 at close on Wednesday for a market capitalization of $32.80 billion, a price-book ratio of 1.75 and a price-sales ratio of 0.47.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a very good profitability rating of 7 out of 10.
Wall Street sell-side analysts produced an average target price of $132.36.
Nidec Corp
The second company to consider is Nidec Corp (NJDCY, Financial).
The Japanese designer, producer and seller of motors and other electronic products in Japan and internationally saw its total revenue per share growing by 11.4% on average every year over the past five years.
The share price traded at $12.54 at close on Wednesday for a market capitalization of $14.7 billion, a price-book ratio of 3.29 and a price-sales ratio of 2.18.
GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a high profitability rating of 8 out of 10.
Wall Street sell-side analysts established an average target price of $38.12.
NXP Semiconductors
The third company to consider is NXP Semiconductors NV (NXPI, Financial).
The Dutch producer of semiconductors components has grown its total revenue per share by 6% on average every year over the past five years.
The stock price closed at $91.58 per share on Wednesday for a market capitalization of $25.62 billion, a price-book ratio of 2.71 and a price-sales ratio of 2.95.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a high profitability rating of 8 out of 10.
Wall Street sell-side analysts established an average target price of $118.
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.
