If you are seeking investment opportunities among U.S.-listed equities, you may want to consider the stocks listed below, as they have grown their free cash flow (FCF) remarkably over recent years. This should allow them more flexibility for financing the development of projects and returning cash to shareholders.
Wall Street also projects a rosy future for these stocks, as sell-side analysts have issued optimistic ratings for them.
Microsoft Corp
The first company investors should consider is Microsoft Corp MSFT, a Redmond, Washington-based developer, manufacturer, licensor and seller of computer software, personal computers and consumer electronics.
The below table shows that the free cash flow per share has grown by 25.5% over the last 12 months, by 15.30% per year over the last five years and by 7.20% per year over the last 10 years.
The company is expected to increase earnings at an annual average growth rate of 16.7% over the next five years.
On Wall Street, as of March, the stock has 14 strong buys, 13 buys, six holds and only one sell recommendation rating for an average target price of $272.71 per share, reflecting a 15.32% upside from Friday's closing price of $236.48 per share.
The share price has risen 47.59% over the past year through Friday for a market capitalization of $1.78 trillion and a 52-week range of $150.01 to $246.13.
Amazon.com Inc
The second company investors should consider is Amazon.com Inc AMZN, a Seattle, Washington-based online retail giant.
The below table illustrates that the free cash flow per share increased 18.30% over the last 12 months, 32.40% per year over the last five years and by 37.30% per year over the last 10 years.
For the next five years, earnings per share are expected to increase at a 37.20% annual average growth rate.
On Wall Street, as of March, the stock has 15 strong buys, 28 buys, three holds and only one underperform rating. The average target price of $3,999.36 reflects a 31.04% upside from the share price of $3,052.03 at market close on Friday.
The share price has increased by 55.40% over the past year through Friday for a market capitalization of $1.54 trillion and a 52-week range of $1,889.15 to $3,552.25.
Procter & Gamble Co
The third company investors should consider is Procter & Gamble Co PG, a Cincinnati-based multinational consumer goods company.
The below table exhibits that the free cash flow per share has grown by 24.70% over the last 12 months, by 6.90% per year over the last five years and by 3.30% per year over the past 10 years.
Looking ahead to the next five years, analysts estimate earnings per share will jump by 9.13% on average every year over the next five years.
On Wall Street, as of March, the stock has six strong buys, four buys, 10 hold recommendation ratings and two underperform recommendation ratings for a target price of $150.88, representing an 11.4% upside from Friday's closing price of $135.45 per share.
The share price was up 17.78% over the past year through Friday, determining a market capitalization of $333.54 billion and a 52-week range of $107 to $146.92.
Disclosure: I have no positions in any security mentioned.
Read more here:
- 3 Stocks with Low 12-Month and Forward PEG Ratios
- Trio of Stocks Growing Earnings Faster than Sales
- 3 Highly Profitable Business with Solid Conditions
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