Investors may find the following companies interesting, as they have grown their capital spending largely over the past five years, indicating they may be anticipating an ongoing improvement in the demand for their products and services.
Furthermore, Wall Street sell-side analysts have recommended positive ratings for these stocks, suggesting that their share prices are expected to perform well.
Cocrystal Pharma Inc
The first company that could be of interest to investors is Cocrystal Pharma Inc (COCP, Financial), a Bothell, Washington-based biotech developer of antiviral treatments for serious viral diseases.
The company purchased property and equipment worth $145,000 in full year 2019, which represented an impressive growth from just $5,000 spent in full year 2014.
Wall Street sell-side analysts recommend a buy rating for this stock and have established an average target price of $5 per share.
The stock traded at $2.20 per share at close on Wednesday for a market capitalization of $114.71 million. The share price fell by 11.3% over the past year.
Despite the significant downturn, the stock does not look cheap, as the price-book ratio is 2.85 versus the industry median of 4.61 and the price-sales ratio is 37.93 versus the industry median of 18.51.
Spotify Technology SA
The second company investors may be interested in is Spotify Technology SA (SPOT, Financial), a Luxemburg-based global provider of audio streaming services.
The company allocated 135 million Euros ($150.8 million) to the purchase of property and equipment in full year 2019, growing dramatically from €6 million spent in full year 2014.
Wall Street sell-side analysts predict that Spotify Technology SA will post an earnings per share (EPS) growth rate of 167.7% per annum over the next five years.
As of August, the stock has three strong buy recommendation ratings, three buy recommendation ratings and two hold recommendation ratings on Wall Street, with an average target price of $255.92 per share.
The stock traded at $249.25 per share at close on Wednesday for a market capitalization of $46.69 billion. The share price increased by 64.22% over the past year.
The stock has a price-book ratio of 19.46 compared to the industry median of 3.86 and a price-sales ratio of 5.71 versus the industry median of 4.01. These ratios suggest the share price is not at its cheapest.
Fox Factory Holding Corp
Lastly, investors may also be interested in Fox Factory Holding Corp (FOXF, Financial), a Braselton, Georgia-based designer, manufacturer and marketer of ride dynamics products for recreational vehicles worldwide.
Fox Factory Holding Corp recorded expenditures of $53.53 million in full year 2019, reflecting an impressive growth from $4.63 million in full year 2014.
Fox Factory Holding Corp’s EPS is expected to increase by 15% every year over the next five years.
Wall Street sell-side analysts have recommended one buy rating and seven hold ratings for the stock with an average target price of $82 per share.
The share price has increased 35.4% over the past year to trade at $98.02 per share at close on Wednesday for a market capitalization is $4.06 billion.
The stock has a price-book ratio of 8.81 versus the industry median of 1.08 and a price-sales ratio of 4.98 compared to the industry median of 0.55.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Fast-Growing Small Caps to Consider
- 3 Stocks With Low Price-Sales Ratios
- A Trio of Stocks for a 'Buy and Hold' Approach
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
