In order to increase your chances to come across securities with high potential, you may want to consider those stocks that have beaten the S&P 500 index in terms of higher earnings per share growth over the past few years. The S&P 500 is used as a benchmark for the U.S. market.
The S&P 500 has grown its earnings per share by a yearly average rate of nearly 5% over the past five years, which has created a catalyst that helped move the value of the index up by 34% to $2,761.63 at close on April 13, 2020.
Thus, investors may want to have a look at Mondelez International Inc (MDLZ, Financial), CSX Corp (CSX, Financial) and Middlesex Water Co (MSEX, Financial), as these companies have beaten the S&P 500 in terms of higher earnings growth over the period in question.
Mondelez International Inc
The Deerfield, Illinois-based producer and global seller of snack food and beverage products saw its trailing 12-month EPS without non-recurring items grow by an average of 6.5% per year over the past five full fiscal years. The share price rose by 38.54% in the past five years to close at $52.34 on Monday.
The stock has a market capitalization of $74.83 billion, a price-earnings ratio of 19.68 versus the industry median of 16.6 and a price-sales ratio of 2.95 versus the industry median of 0.74.
Wall Street recommends buying the stock and has established an average price target of $61.21 per share.
GuruFocus assigned a moderate rating of 5 out of 10 for the company’s financial strength and a very good rating of 7 out of 10 for its profitability.
CSX Corp
The Jacksonville, Florida-based provider of railroad transportation services saw its trailing 12-month EPS without NRI growing by a yearly average rate of 22.3% over the past five years, pushing the share price up by 87.4% in the past five years to $61.57 at close on Monday.
The stock has a market capitalization of $49.33 billion, a price-earnings ratio of 15.35 versus the industry median of 11.13 and a price-sales ratio of 4.28 versus the industry median of 0.52.
Wall Street issued an overweight recommendation rating for the stock with an average price target of $68.33 per share.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a high profitability rating of 8 out of 10.
Middlesex Water Co
The Iselin, New Jersey-based operator of regulated and non-regulated utility systems for the distribution of water and the treatment of wastewater saw its trailing 12-month EPS without NRI growing by a yearly average rate of 13.1% over the past five full fiscal years. This has pushed the share price up by 169.3% in the past five years to close at $62.37 on Monday.
The stock has a market capitalization of $1.09 billion, a price-earnings ratio of 31.19 compared to the industry median of 14.68 and a price-sales ratio of 7.8 compared to the industry median of 1.2.
Wall Street recommends buying the stock and has set an average price target of $71.33 per share.
GuruFocus assigned a moderate score of 4 out of 10 to the company’s financial strength, but a very good score of 7 out of 10 to the company’s profitability.
Disclosure: I have no positions in any securities mentioned in this article.
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