The S&P 500 index posted a 7.2% yearly increase in its annual earnings per share over the past five years through Dec. 31, 2019. The share price of the index ($3,083.76 at close on Thursday) is up nearly 47% over the past five years through June 25.
Thus, investors may want to consider Baxter International Inc BAX, Axalta Coating Systems Ltd AXTA and Maxim Integrated Products Inc MXIM as potential investments, as these companies have outperformed the benchmark for the U.S. market in terms of a higher five-year EPS growth rate.
Baxter International Inc
The Deerfield, Illinois-based global supplier of several healthcare products posted a five-year EPS without a non-recurring items (NRI) growth rate of 19.5%.
The stock price was trading at $85.33 per share at close on Thursday for a market capitalization of $43.42 billion and a price-earnings ratio of 43.31 versus the industry median of 34.32.
Wall Street sell-side analysts recommend an overweight rating for the stock and have established an average price target of $97.39 per share.
GuruFocus assigned a positive rating of 6 out of 10 to the company’s financial strength and a very good rating of 7 out of 10 to its profitability.
Axalta Coating Systems Ltd
The Philadelphia-based global distributor of high performance coatings systems posted five-year EPS without NRI growth rate of 46%.
The stock price was trading at $21.72 per share at close on Thursday for a market capitalization of $5.11 billion and a price-earnings ratio of 19.75 versus the industry median of 16.71.
Wall Street sell-side analysts recommend a buy rating with an average target price of $25.79 per share.
GuruFocus assigned the company a moderate rating of 4 out of 10 for the financial strength and a positive rating of 6 out of 10 for the profitability.
Maxim Integrated Products Inc
The San Jose, California-based seller of integrated circuits in North America and internationally posted a five-year EPS without NRI growth rate of 25.1%.
The stock price was trading at $60.19 per share at close on Thursday for a market capitalization of $16.05 billion and a price-earnings ratio of 20.33 versus the industry median of 23.89.
Wall Street sell-side analysts recommend a hold rating and have established an average target price of $60.44 per share.
GuruFocus assigned a very good financial strength rating of 7 out of 10 to the company and a high profitability rating of 8 out of 10.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- Analysts Recommend Catching These 2 Falling Knives
- 3 High Quality Stocks for the Value Investor
- A Trio of Strong Performers to Consider
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here
