Investors may want to have a look at the following stocks, as they represent companies that have grown their capital spending substantially over the past five years. This could indicate that these companies expect higher demand for their products and services in the future.
Furthermore, Wall Street sell-side analysts predict that these stocks will increase their earnings per share significantly, outperforming the S&P 500.
Facebook Inc
The first company to have a look at is Facebook Inc (FB, Financial).
The Menlo Park, California-based social media giant purchased property, plant and equipment worth $15.1 billion in full-year 2019 compared to the $1.8 billion invested in 2014.
Wall Street analysts predict that Facebook’s EPS will grow 13.1% this year and 16.37% per year over the next five years, while the S&P 500’s EPS is expected to drop 23% this year and grow by 4% per year over the next five years.
As of June, 17 Wall Street analysts recommended a strong buy rating and 24 recommended a buy rating for Facebook, determining an average target price of $241.81 per share.
Facebook traded at $226.29 per share at close on Thursday for a market capitalization of $644.72 billion. The share price gained 34.4% over the past year.
The stock has a price-book ratio of 6.16 versus the industry median of 3.05 and a price-sales ratio of 8.87 compared to the industry median of 3.06.
Axcelis Technologies Inc
The second company to have a look at is Axcelis Technologies Inc (ACLS, Financial).
The Beverly, Massachusetts-based global manufacturer and supplier of processing equipment used in the production of semiconductors has invested $12 million for the purchase of properties, plants and equipment in full-year 2019 compared to only $900 thousand spent in full-year 2014.
Wall Street analysts predict that Axcelis Technologies will grow its EPS by 108% this year and 20% per year over the next five years.
As of June, three analysts recommended a buy rating while two recommended a hold rating for this stock. The average target price is $30.20 per share.
The stock price has risen by nearly 80% in the past year, closing at $26.73 per share on Thursday for a market capitalization of $878.75 million.
The stock has a price-book ratio of 2.13 versus the industry median of 1.78 and a price-sales ratio of 2.44 versus the industry median of 1.76.
Willdan Group Inc
The third company to have a look at is Willdan Group Inc (WLDN, Financial).
The Anaheim, California-based professional provider of engineering and construction consulting services to U.S. companies has spent $6.64 million for the purchase of equipment in full-year 2019, growing significantly from $492 thousand spent in 2014.
Willdan Group is predicted to increase its EPS by 435% next year.
As of June, two analysts recommended a strong buy rating and one analyst recommended a buy rating for this stock with an average target price of $32.75 per share.
The stock price traded at around $26.67 per share at close on Thursday following a15% drop over the last 52 weeks. The market capitalization is $310.71 million.
The stock has a price-book ratio of 1.9 versus the industry median of 0.9 and a price-sales ratio of 0.68 versus the industry median of 0.49.
Disclosure: I have no positions in any securities mentioned.
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