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Alberto Abaterusso
Alberto Abaterusso
Articles (2376) 

This Trio Is Expanding Investments in Fixed Assets

Massive amounts allocated to the purchase of fixed assets may anticipate higher stock prices

September 30, 2020 | About:

The following companies have increased their investments in fixed assets significantly over recent years, with the target to upgrade their operating activities. This may signal that these companies believe demand for their goods and services will increase in the near future, producing higher sales.

Wall Street sell-side analysts also recommend these stocks and have issued positive ratings.

Co-Diagnostics Inc

The first company which investors may be interested in is Co-Diagnostics Inc (NASDAQ:CODX), a Salt Lake City, Utah-based manufacturer and seller of reagents used for nucleic acid testing.

Co-Diagnostics Inc invested $113,246 in the purchase of property and equipment in full-year 2019, increasing dramatically from $12,241 spent in 2016.

Morningstar analysts predict that the company will increase its net earnings per share (EPS) by 608% this year and by 43% in 2021.

On Wall Street, the stock holds a buy recommendation rating with an average target price of $35.33 per share.

The stock price closed at $13.92 per share on Tuesday for a market capitalization of $390.91 million.

The price-earnings ratio is 73.27 versus the industry median of 43.95, the price-book ratio is 11.69 versus the industry median of 4.99 and the price-sales ratio is 15.43 compared to the industry median of 5.99.

PagSeguro Digital Ltd

The second company investors may be interested in is PagSeguro Digital Ltd (NYSE:PAGS), a Brazilian provider of financial technology solutions and services to micro, small and medium-sized merchants in Brazil and internationally.

Total cash flows allocated to the acquisition of property and plant increased enormously over the past three years to $81 million in 2019 versus $670,000 in 2016.

Morningstar analysts forecast that the company will increase its EPS by 43.7% in 2021 and by 4.14% every year over the next five years.

On Wall Street, the stock holds an overweight recommendation rating with an average target price of $43.67 per share.

The stock price traded at $37.54 per share at close on Tuesday for a market capitalization of $12.31 billion following a nearly 20% decrease over the prior 12 months.

The price-earnings ratio is 40.89 versus the industry median of 30.28, the price-book ratio is 7.41 compared to the industry median of 3.41 and the price-sales ratio is 9.72 compared to the industry median of 2.58.

Lindblad Expeditions Holdings Inc

The third company that could be of interest to investors is Lindblad Expeditions Holdings Inc (NASDAQ:LIND), a New York-based provider of expedition cruising and adventure travel experiences.

Lindblad Expeditions Holdings Inc's allocations to the purchase of properties and plant increased significantly over the past three years to $96 million in 2019, up from $76 million in 2016.

Morningstar analysts predict that the EPS will increase by 70.3% in 2021 and by 25% per annum over the next five years.

On Wall Street, the stock holds an overweight recommendation rating with an average target price of $9.20 per share.

The share price was trading at $8.58 at close on Tuesday for a market capitalization of $427.79 million after a decline of 48.8% over the past year.

The price-book ratio is 5.08 versus the industry median of 1.37 and the price-sales ratio is 1.65 versus the industry median of 1.54.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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