3 Top Performers to Consider

They recently outperformed the S&P 500

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Shareholders of Rollins Inc. (ROL, Financial), Jack Henry & Associates Inc. (JKHY, Financial) and Shenandoah Telecommunications Co. (SHEN, Financial) have seen their stocks deliver higher returns than the S&P 500 Index in recent years. The S&P 500 declined by about 2% over the past year, increased by 20% over the past three years and increased by 36.4% over the past five years through May 4.

Wall Street sell-side analysts also issued positive recommendation ratings for these three stocks.

Rollins

Shares of Rollins have increased 9.7% over the past year, 56% over the past three years and 153.3% over the past five years through May 4, topping the S&P 500 by 11.8%, 36% and 117%, respectively.

The Atlanta-based provider of pest and termite control services to residential and commercial customers has also paid quarterly dividends over the observed years. On June 10, the company will pay a quarterly cash dividend of 8 cents per common share, generating a trailing 12-month dividend yield of 1.06% and a forward dividend yield of 0.78% as of early trading May 5.

GuruFocus assigned a positive rating of 6 out of 10 for the company’s financial strength and a near the top rating of 9 out of 10 for its profitability.

The stock traded at a price of $40.68 per share at close on May 4 for a market capitalization of $13.44 billion.

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The stock has a price-earnings ratio of 67.27 and a price-book ratio of 17.07. These ratios indicate that the stock does not trade cheaply.

Wall Street sell-side analysts recommended a hold rating for this stock.

Jack Henry & Associates

Shares of Jack Henry & Associates have increased by 23.6% over the past year, 73.7% over the past three years and 154.2% over the past five years through May 4, topping the S&P 500 by 25.7%, 53.6% and 117.8%, respectively.

The Monett, Missouri-based provider of technology solutions and payment processing services to U.S. financial services companies has also paid quarterly dividends over the observed years. On March 19, the company paid a quarterly cash dividend of 43 cents per common share. As of early trading May 5, the quarterly dividend generates a trailing 12-month dividend yield of 0.99% and a forward dividend yield of 1.04%.

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

The stock traded at a price of $162.03 per share at close on May 4 for a market capitalization of $12.66 billion.

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The stock has a price-earnings ratio of 46.59 and a price-book ratio of 8.82. These ratios indicate that the stock price is not cheap.

Wall Street sell-side analysts recommended a hold rating for this stock.

Shenandoah Telecommunications

Shares of Shenandoah Telecommunications have increased by 11.6% over the past year, 46% over the past three years and 191.4% over the past five years through May 4, topping the S&P 500 by 13.7%, 26% and 155%, respectively.

The Edinburg, Virginia-based telecommunication services company has also distributed dividends over the observed years. On Dec. 2, the company paid a cash quarterly dividend of 29 cents per common share, which generates a 0.62% yield for the trailing 12-month dividend and forward dividend as of early trading May 5.

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

The stock traded at a price of $45.34 per share at close on May 4 for a market capitalization of $2.32 billion.

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The stock has a price-earnings ratio of 42.79 and a price-book ratio of 4.85. These ratios indicate that the stock price is not at its cheapest.

As of May, three Wall Street sell-side analysts recommend a buy rating while one suggests a hold rating for this stock.

Disclosure: I have no positions in any securities mentioned.

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