The following companies have grown their allocations of funds to the purchase of property, plant, and equipment significantly over recent years, with the focus on upgrading their operating activities. This may anticipate higher demand for these companies' goods and services, which should produce higher sales.
Wall Street sell-side analysts also recommend these stocks and have issued positive ratings.
EXp World Holdings
The first company which investors may be interested in is eXp World Holdings Inc. (EXPI, Financial), a Bellingham, Washington-based provider of cloud-based real estate brokerage services for residential homeowners and homebuyers in North America, the U.K. and Australia.
The company allocated $5 million to the purchase of PP&E in full-year 2019, increasing enormously from the $49,032 allocated in 2014. The purchase of PP&E increased by a mean growth rate of 114% per annum over the past five years.
Morningstar analysts predict that the company will increase its net earnings per share by 266.7% this year, by 88% in 2021 and 10% every year over the next five years.
On Wall Street, the stock holds a strong buy recommendation rating.
The stock traded at $56.97 per share at close on Friday for a market capitalization of $3.9 billion.
The price-earnings ratio is 558.53 versus the industry median of 12.28, the price-book ratio is 49.84 versus the industry median of 0.8 and the price-sales ratio is 3.28 versus the industry median of 2.6.
Abiomed
The second company investors may be interested in is Abiomed Inc. (ABMD, Financial), a Danvers, Massachusetts-based medical devices manufacturer.
Abiomed invested $44 million in the acquisition of PP&E in full fiscal 2020 (which ended on March 30), growing dramatically from $5.2 million in full fiscal 2015. The acquisition of PP&E increased by an average growth rate of 83% per annum over the past five years.
Morningstar analysts forecast that after a slight decline of 0.2%, which will occur this year, the company's earnings per share will grow again next year by 19.7%, and over the next five years by a yearly average of 24%.
On Wall Street, the stock holds a buy recommendation rating with an average target price of $315.40 per share.
The stock traded at $286.48 per share at close on Friday for a market capitalization of $12.91 billion as a result of a 63.42% rise over the prior 12 months.
The price-earnings ratio is 82.56 versus the industry median of 37.21, the price-book ratio is 11.71 versus the industry median of 4.4 and the price-sales ratio is 16.39 compared to the industry median of 5.17.
Champions Oncology
The third company investors may want to invest in is Champions Oncology Inc. (CSBR, Financial), a Hackensack, New Jersey-based developer and seller of technology solutions to customize the development and use of oncology treatments in the U.S.
Champions Oncology spent $2.22 million for the purchase of PP&E in full fiscal 2020 (which ended on April 28), which marks a tremendous growth when compared to $119,000 allocated in full fiscal 2015. The purchase of PP&E increased by an average growth rate of 101% per year over the past five years.
Morningstar analysts predict that earnings per share will increase by 150% this year, by 214.3% in 2021 and by 15% per annum over the next five years.
On Wall Street, the stock holds a buy recommendation rating with a target price of $11 per share.
The stock traded at $9.01 per share at close on Friday for a market capitalization of $114.68 million following an increase of 48% over the past year.
The price-book ratio is 20.81 versus the industry median of 4.65 and the price-sales ratio is 3.46 compared to the industry median of 18.53.
Disclosure: I have no positions in any securities mentioned.
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