The S&P 500’s average earnings per share have risen at a rate of 7.2% per year over the past five years through Dec. 31, 2019. The share price of the benchmark for the U.S. market, which closed at $3,169.94 on July 8, increased by 52.7% over the past five years through July 8.
Thus, investors may want to consider International Paper Co (IP, Financial), Grand Canyon Education Inc (LOPE, Financial) and Tempur Sealy International Inc (TPX, Financial), as these companies have seen their earnings per share (EPS) without non-recurring items (NRI) increase by an annual average rate of more than 7.2% over the past five years.
International Paper Co
The Memphis, Tennessee-based paper and packaging company saw its trailing 12-month EPS without NRI increase by a yearly average of 23.1% over the past five full fiscal years.
The stock price traded at $34.14 per share at close on Wednesday for a market capitalization of $13.42 billion and a price-earnings ratio of 20.56 versus the industry median of 14.43.
Wall Street sell-side analysts recommend a hold rating for this stock and have set an average price target of $36.58 per share.
GuruFocus assigned a moderate rating of 4 out of 10 for the company’s financial strength and a positive rating of 6 out of 10 for its profitability.
Grand Canyon Education Inc
The Phoenix, Arizona-based provider of higher education services in the U.S. saw its trailing 12-month EPS without NRI increase by nearly 19% on average every year over the past five full fiscal years.
The stock price traded at $87.47 per share at close on Wednesday for a market capitalization of $4.14 billion and a price-earnings ratio of 16.39 compared to the industry median of 17.65.
Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $112 per share.
GuruFocus assigned the company a high score of 8 out of 10 for both financial strength and profitability.
Tempur Sealy International Inc
The Lexington, Kentucky-based manufacturer and distributor of bedding in North America and internationally saw its trailing 12-month EPS without NRI increase by an annual average rate of 17.3% over the past five full fiscal years.
The stock price traded at $72.80 per share at close on Wednesday for a market capitalization of $3.75 billion and a price-earnings ratio of 18.19 versus the industry median of 17.06.
Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $87.56 per share.
GuruFocus assigned a moderate score of 4 out of 10 to the company’s financial strength and a good score of 7 out of 10 to its profitability.
Disclosure: I have no positions in any securities mentioned in this article.
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