The following businesses have allocated significantly more funds for the acquisition of property, plant and equipment over recent years with the aim of upgrading their operating activities. This could be a signal that the executives of these businesses expect a higher demand for the goods and services they produce and supply, which would ideally bring in higher revenues.
Wall Street sell-side analysts also recommend these stocks, having issued positive ratings for each of them.
iRhythm Technologies Inc
The first company which investors may want to consider is iRhythm Technologies Inc (IRTC, Financial), a San Francisco, California-based digital healthcare supplier of ambulatory electrocardiogram monitoring products for patients at risk for arrhythmias.
iRhythm Technologies Inc used about $20.5 million for the purchase of fixed assets in full-year 2019, increasing enormously from the $540,000 allocated in 2014.
Morningstar analysts predict that the company's net earnings will increase by 27.8% in 2020 and by 50.6% in 2021, on higher revenues of 263.06 million (up 22.6% year over year) and 349.33 million (up 32.8% year over year), respectively.
On Wall Street, the stock holds an overweight median recommendation rating with an average price target of $238.13 per share.
The stock traded at $218.48 per share at close on Wednesday for a market capitalization of $6.31 billion. The share price has risen by 209.3% over the past year. The price-book ratio is 18.84.
BeiGene Ltd
The second company to consider is BeiGene Ltd (BGNE, Financial), a Beijing, China-based developer of molecularly targeted and immuno-oncology drugs for the treatment of several forms of cancer.
BeiGene Ltd allocated $89.61 million to the purchase of property, plant and equipment in full year 2019, growing dramatically from $650,000 in full year 2014.
Morningstar analysts forecast that after a decline of 10.9% in 2020, the company's earnings per share will grow again by 17.9% in 2021 as a result of an expected 117.4% year over year increase in total revenue up to $731.71 million.
On Wall Street, the stock holds an overweight median recommendation rating for an average target price of $300.42 per share.
The stock traded at $262.26 per share at close on Wednesday for a market capitalization of $24.16 billion as a result of a 62.56% growth over the prior 12 months. The price-book ratio is 5.34.
Intra-Cellular Therapies Inc
The third company investors may want to consider is Intra-Cellular Therapies Inc (ITCI, Financial), a New York-based biopharmaceutical developer of novel treatments for disorders of the central nervous system in the U.S.
Intra-Cellular Therapies Inc invested $700,395 for the purchase of property and equipment in full-year 2019, which marks an impressive increase compared to a total spending of $11,762 in the full year 2014.
Morningstar analysts predict that after a 24.3% decline in 2020, the EPS will increase again in 2021 by 9.3% thanks to an expected 414.1% year over year rise in total revenue up to $113.4 million.
On Wall Street, the stock holds a buy median recommendation rating for an average target price of $46.44 per share.
The stock traded at $32.86 per share at close on Wednesday for a market capitalization of $2.63 billion following an increase of 24.75% over the past 52 weeks. The price-book ratio is 3.22.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Small Caps for the Growth-Focused Investor
- 3 High-Return Businesses With Robust Balance Sheets
- 3 Non-Cyclical Stocks to Consider
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