The S&P 500 Index, which is the main benchmark for the U.S. market, has grown its annual earnings per share (not adjusted for inflation) by a yearly average rate of approximately 7.2% over the past five years. On the tailwind of this, the share price of the index grew by more than 30% over the past five years, closing at $2,797.80 on April 23.
Thus, investors may want to consider New York Times Co (NYT, Financial), Nasdaq Inc (NDAQ, Financial) and Logitech International SA (LOGI, Financial), as the five-year growth rate for their earnings per share (EPS) without non-recurring items (NRI) was more than 7.2%.
New York Times Co
The U.S. newspaper company grew its trailing 12-month EPS without NRI by an average of 22.4% per year over the past five full fiscal years. Its share price ($30.19 at close on Thursday) rose by 134% over the past 12 months through April 23.
The stock has a market capitalization of $5.01 billion, a price-earnings ratio of 35.94 versus the industry median of 14 and a price-sales ratio of 2.79 versus the industry median of 0.9.
Wall Street recommends a hold rating for this stock with an average price target of $32.20 per share.
GuruFocus assigned a very high rating of 8 out of 10 for the company’s financial strength and a good rating of 7 out of 10 for its profitability.
Nasdaq Inc
The New York-based financial data and stock exchange company grew its trailing 12-month EPS without NRI by a yearly average of 17% over the past five years. On the tailwind of this, the share price ($103.85 at close on Thursday) rose by 115% over the past five years through April 23.
The stock has a market capitalization of $17.07 billion, a price-earnings ratio of 23.76 versus the industry median of 14.1 and a price-sales ratio of 3.79 versus the industry median of 2.47.
Wall Street issued an overweight recommendation rating for the stock with an average price target of $112.50 per share.
GuruFocus assigned the company a positive financial strength rating of 5 out of 10 and a very high profitability rating of 8 out of 10.
Logitech International SA
The Swiss designer of products for connecting through computing, gaming, music, video and other global digital platforms grew its trailing 12-month EPS without NRI by a yearly average of 17.7% over the past five full fiscal years. On the tailwind of this, the share price ($46.68 at close on Thursday) rose by nearly 215% over the five-year period through April 23.
The stock has a market cap of $7.9 billion, a price-earnings ratio of 28.2 versus the industry median of 17.21 and a price-sales ratio of 2.7 compared to the industry median of 0.91.
Wall Street recommends an overweight rating for this stock with an average price target of $50.63 per share.
GuruFocus assigned a very good score of 7 out of 10 to the company’s financial strength, and a higher score of 8 out of 10 to the company’s profitability.
Disclosure: I have no positions in any securities mentioned in this article.
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