A Trio of Strong Performers to Consider

Wall Street analysts predict these three stocks will continue to outperform the US market

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Shareholders of Costco Wholesale Corp (COST, Financial), Dollar General Corp (DG, Financial) and Bioanalytical Systems Inc (BASI, Financial) have seen their holdings return more than the S&P 500 index in recent years. The S&P 500 fell by nearly 6% over the past year, increased by 16.5% over the past three years and increased by 29.2% over the past five years through April 21.

Wall Street expects these stocks to continue to perform strongly in the few years ahead, as sell-side analysts have recommended optimistic ratings for them.

Costco Wholesale Corp

Shares of Costco Wholesale Corp have risen 22.7% over the past year, 76.5% over the past three years and 104.6% over the past five years through April 21, beating the S&P 500 by 28.5%, 60% and 75.4%, respectively.

The Issaquah, Washington-based operator of warehouse discount stores has also paid quarterly dividends over the observed years. On May 15, the company will pay a quarterly cash dividend of 70 cents per common share, which represents a 7.7% hike from the previous payment dated Feb. 21. The distribution generates a trailing 12-month dividend yield of 0.85% and a forward dividend yield of 0.93% as of April 21.

GuruFocus assigned a very good rating of 7 out of 10 for the company’s financial strength and a higher rating of 8 out of 10 for its profitability.

The stock traded at a price of $301.33 per share at close on April 21 for a market capitalization of $140.39 billion.

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The stock has a price-earnings ratio of 37.32 and a price-book ratio of 8.47. These ratios may indicate that the stock price is not at its cheapest.

Wall Street sell-side analysts recommended an overweight rating for this stock and have produced an average target price of $323.23.

Dollar General Corp

Shares of Dollar General Corp have risen by 44% over the past year, 152.7% over the past three years and 134.4% over the past five years through April 21, beating the S&P 500 by nearly 50%, 136.2% and 105.2%, respectively.

The Goodlettsville, Tennessee-based operator of discount stores has also paid quarterly dividends over the observed years. On April 21, the date of the last payment, the company distributed a 36 cents quarterly cash dividend per common share, which reflected a 12.5% hike from the prior distribution. As of April 21, the quarterly dividend generates a trailing 12-month dividend yield of 0.72% and a forward dividend yield of 0.79%.

GuruFocus assigned a positive rating of 5 out of 10 to the company’s financial strength and a rating of 9 out of 10 to its profitability.

The stock traded at a price of $178.74 per share at close on April 21 for a market capitalization of $45.8 billion.

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The stock has a price-earnings ratio of 26.88 and a price-book ratio of 6.8. These ratios indicate that the stock is not trading cheaply.

Wall Street sell-side analysts recommended an overweight rating for this stock with an average target price of $177.52 per share.

Bioanalytical Systems Inc

Shares of Bioanalytical Systems Inc have risen by 110.7% over the past year, 233% over the past three years and 101.5% over the past five years through April 21, beating the S&P 500 by 116.5%, 216.5% and 72.3%, respectively.

Based in West Lafayette, Indiana, Bioanalytical Systems Inc is a provider of diagnostic and research services to several pharmaceutical organizations worldwide.

GuruFocus assigned a low rating of 2 out of 10 to the company’s financial strength but a moderate rating of 4 out of 10 to its profitability.

The stock traded at a price of $4.13 per share at close on April 21 for a market capitalization of $44.68 million.

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The stock has a price-to-owner-earnings ratio of 158.85 and a price-book ratio of 4.26. These ratios may suggest that the current share price is not the cheapest.

Wall Street sell-side analysts recommend a buy rating for this stock.

Disclosure: I have no positions in any securities mentioned.

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