3 Strong Performers to Consider

They recently outperformed the S&P 500

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Shareholders of Ecolab Inc (ECL, Financial), Kansas City Southern (KSU, Financial) and Jacobs Engineering Group Inc (J, Financial) have seen their holdings gaining higher share price returns than the S&P 500 Index in recent years. The S&P 500 rose by 7.3% over the past year, 26% over the past three years and 44.5% over the past five years through May 29.

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

Ecolab Inc

Shares of Ecolab Inc have increased 14.5% over the past year, 62% over the past three years and 84.8% over the past five years through May 29, outperforming the S&P 500 by 7.2%, 36% and 40.3%, respectively.

The Saint Paul, Minnesota-based global provider of water, hygiene solutions and several other services has also paid quarterly dividends over the observed years. On July 15, the company will pay a quarterly cash dividend of 47 cents per common share, generating a 0.88% forward dividend yield as of May 29.

GuruFocus assigned a positive rating of 6 out of 10 for the company’s financial strength and a high rating of 8 out of 10 for its profitability.

The stock was trading at a price of $212.58 per share at close on May 29 for a market capitalization of $61.48 billion.

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The stock has a price-earnings ratio of 40.19 and a price-book ratio of 7.05. These ratios suggest that the stock is not at its cheapest.

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

Kansas City Southern

Shares of Kansas City Southern have increased by 34.3% over the past year, 56.8% over the past three years and 62.7% over the past five years through May 29, outperforming the S&P 500 by 27%, 30.8% and 18.2%, respectively.

The Kansas City, Missouri-based provider of domestic and international railroad transportation services in the U.S. and Canada has also paid quarterly dividends over the observed years. On July 7, the company will pay a quarterly cash dividend of 40 cents per common share, which generates a forward dividend yield of 1.06% as of May 29.

GuruFocus assigned a moderate rating of 4 out of 10 to the company’s financial strength and a high rating of 8 out of 10 to its profitability.

The stock was trading at a price of $150.52 per share at close on May 29 for a market capitalization of $14.30 billion.

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The stock has a price-earnings ratio of 25.21 and a price-book ratio of 3.27. These ratios indicate that the stock price is not trading cheaply.

Wall Street sell-side analysts recommended an overweight rating for this stock.

Jacobs Engineering Group Inc

Shares of Jacobs Engineering Group Inc have increased by 9.3% over the past year, 59.6% over the past three years and 93.4% over the past five years through May 29, outperforming the S&P 500 by 2%, 33.6% and 48.9%, respectively.

The Dallas, Texas-based project delivery services company for the public and private sectors has also paid quarterly dividends over the observed years. On June 17, the company paid a cash quarterly dividend of 19 cents per common share, generating a 0.9% forward dividend yield as of May 29.

GuruFocus assigned a positive rating of 6 out of 10 to both the company’s financial strength and profitability.

The stock was trading at a price of $84.02 per share at close on May 29 for a market capitalization of $10.93 billion.

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The stock has a price-earnings ratio of 13.86 and a price-book ratio of 2. These ratios suggest that the stock price is not expensive.

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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