A Trio of Strong Performers to Consider

They recently beat the S&P 500

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Shareholders of Abbott Laboratories (ABT, Financial), Mastercard Inc (MA, Financial) and Lowe's Companies Inc (LOW, Financial) have seen their stocks return more than the S&P 500 index in recent years. The index increased by about 5.5% over the past year, 28% over the past three years and 48.5% over the past five years through June 23.

These stocks also hold positive recommendation ratings on Wall Street.

Abbott Laboratories

Shares of Abbott Laboratories have returned 8.4% over the past year, 86% over the past three years and 85% over the past five years through June 23, beating the S&P 500 by 2.7%, 58% and 36.5%, respectively.

The U.S. medical devices giant has also paid quarterly dividends over the observed years. On Aug. 17, the company will pay a quarterly cash dividend of 36 cents per common share, which generates a forward dividend yield of 1.58% as of June 23.

GuruFocus assigned a positive rating of 5 out of 10 for the company’s financial strength and a very good rating of 7 out of 10 for its profitability.

The stock price traded at around $91.30 per share at close on June 23 for a market capitalization of $161.5 billion.

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The stock has a price-earnings ratio of 45.88 and a price-book ratio of 5.38. These ratios suggest that the stock is not at its cheapest.

Wall Street sell-side analysts issued an overweight recommendation rating for this stock and have established an average target price of $102.19 per share.

Mastercard Inc

Shares of Mastercard Inc have returned 18.2% over the past year, 147.5% over the past three years and 225% over the past five years through June 23, topping the S&P 500 by 12.5%, 118.6% and 176.5%, respectively.

The Purchase, New York-based credit card services giant has also paid quarterly dividends over the periods in question. On Aug. 7, the company will distribute a quarterly dividend of 40 cents per common share, which produces a forward dividend yield of 0.53% as of June 23.

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

The stock price was trading at around $306.90 per share at close on June 23 for a market capitalization of $308.03 billion.

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The stock has a price-earnings ratio of 38.95 and a price-book ratio of 56.96. These ratios suggest that the stock is not cheap.

Wall Street sell-side analysts recommended a buy rating for this stock and have produced an average target price of $322.13 per share.

Lowe's Companies Inc

Shares of Lowe's Companies Inc returned 36.7% over the past year, 76.5% over the past three years and 92.8% over the past five years through June 23, beating the S&P 500 index by 31%, 48.5% and 44.3%, respectively.

The Mooresville, North Carolina-based home improvement retailer in North America and Mexico has also paid quarterly dividends over the observed years. The company is currently paying a quarterly dividend of 55 cents per common share, generating a 1.61% forward dividend yield as of June 23.

GuruFocus assigned a positive rating of 5 out of 10 for the company’s financial strength and a very high rating of 8 out of 10 for its profitability.

The stock price was trading at around $134.3 per share at close on June 23 for a market capitalization of $101.38 billion.

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The stock has a price-earnings ratio of 22.75 and a price-book ratio of 59.36. These ratios suggest that the stock is not trading cheaply.

Wall Street sell-side analysts recommend a buy rating for this stock with an average target price of $138.68 per share.

Disclosure: I have no positions in any securities mentioned.

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