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Alberto Abaterusso
Alberto Abaterusso
Articles (2323) 

3 Stocks Growing Their Earnings Very Fast

Their 5-year earnings per share growth rates top that of the S&P 500

September 22, 2020 | About:

The S&P 500 saw its trailing 12-month earnings per share (EPS) going up by nearly 6% on average every year over the past five years. The index's share price ($3,281.06 as of Monday ) grew by about 70% over the past five years through Sept. 21.

Thus, investors may want to consider ZTO Express (Cayman) Inc (NYSE:ZTO), Dunkin' Brands Group Inc (NASDAQ:DNKN) and Green Dot Corp (NYSE:GDOT), as these companies have grown their EPS at an average yearly rate of more than 6% over the observed years.

ZTO Express

The Chinese provider of delivery services for e-commerce and traditional merchants through a self-owned fleet of 6,450 trucks saw its trailing 12-month EPS without non-recurring items (NRI) grow by 58.2% every year over the past five full fiscal years.

The stock price climbed 73% over the past five years to trade at $28.68 per American Depository Receipt (ADR) at close on Monday for a market capitalization of $22.53 billion, a 52-week range of $19.84 to $38.99 and a price-earnings ratio of 29.03.

Among the top fund holders of the company, Invesco Ltd. dominates with 4.96% of shares outstanding. It is followed by BlackRock Inc. with 2.21% of shares outstanding and Vanguard Group Inc with 1.89% of shares outstanding.

The stock holds a buy recommendation rating on Wall Street.

Dunkin' Brands Group Inc

The Canton, Massachusetts-based franchisor and licensor to operate quick-service restaurants in the U.S. and internationally saw its trailing 12-month EPS without NRI grow by 18.7% on average every year over the past five full fiscal years.

The stock price rose by 58% over the past five years to close at $76.41 per share on Monday for a market capitalization of $6.29 billion, a 52-week range of $38.51 to $82.59, and a price-earnings ratio of 29.16.

Price T Rowe Associates Inc/MD/ leads the group of top fund holders, owning 10.65% of shares outstanding. It is followed by BlackRock Inc. with 9.29% and Vanguard Group Inc with 9.13% of shares outstanding.

On Wall Street, the stock holds an overweight recommendation rating.

Green Dot Corp

The Pasadena, California-based operator of a credit services company in the United States saw its trailing 12-month EPS without NRI grow by 24.6% every year over the past five full fiscal years.

The stock price has risen by more than 170% over the past five years to close at $48.48 per share on Monday for a market capitalization of $2.59 billion, a 52-week range of $14.20 to $56.92 and a price-earnings ratio of 51.03.

Among the top fund holders of the company, BlackRock Inc. is the leader with 14.46% of shares outstanding. It is followed by Vanguard Group Inc with 9.47% of shares outstanding and Starboard Value LP with 8.29% of shares outstanding.

On Wall Street, the stock holds an overweight recommendation rating.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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