3 Stocks Growing Earnings Fast

The 5-year earnings growth rates are outperforming that of the S&P 500

Summary
  • The S&P 500's earnings per share have grown 1.73% on average every year over the past five years.
  • Silvercrest Asset Management Group, Willis Towers Watson and Masco have grown their earnings more rapidly than the benchmark index.
  • Growing earnings are usually a strong catalyst for sending share prices higher.
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The S&P 500 saw its trailing 12-month real earnings per share jump by about 1.73% on average every year over the past five years. The index's share price ($4,229.89 as of Friday) has grown by more than 100% over the past five years through June 4.

Thus, investors may want to consider Silvercrest Asset Management Group Inc. (SAMG, Financial), Willis Towers Watson PLC (WLTW, Financial) and Masco Corp. (MAS, Financial), since these companies have strongly outperformed the S&P 500 in terms of a higher five-year annual earnings per share growth rate over the years in question.

Silvercrest Asset Management Group (SAMG, Financial)

The New York-based asset management company serving ultra-high net worth individuals and families, their trusts, as well as institutional investors and investment funds, saw its trailing 12-month earnings per share without non-recurring items jump by 12.5% on average every year over the past five years.

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The share price has increased nearly 40% over the past five years to close at $16.94 n Friday for a market capitalization of $244.77 million, a 52-week range of $9.41 to $17.66 and a price-earnings ratio of 23.21.

Chuck Royce (Trades, Portfolio) is the leader in the group of top fund holders with 5.21% of shares outstanding. The investor is followed by BlackRock Inc. with 4.12% of shares outstanding and Boston Partners with 3.58% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of $19.75 per share.

Willis Towers Watson (WLTW, Financial)

The London-based provider of advisory and brokerage services and solutions for individuals, professionals and businesses worldwide saw its trailing 12-month earnings per share without NRI jump by nearly 15% on average every year over the past five years.

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The share price has risen by approximately 101% over the past five years, closing at $259.73 on Friday for a market capitalization of $33.50 billion, a 52-week range of $179.31to $271.87 and a price-earnings ratio of 23.74.

Vanguard Group Inc. leads the group of top fund holders with 10.57% of shares outstanding. The asset management firm is followed by BlackRock with 6.90% of shares outstanding and State Street Corp. with 4.92% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $271.09 per share.

Masco (MAS, Financial)

The Livonia, Michigan-based manufacturer and distributor of home improvement and building products in North America and internationally saw its trailing 12-month earnings per share without NRI jump by 22.3% on average every year over the past five years.

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The share price has climbed by 87.22% over the past five years to trade at $59.78 at close on Friday for a market capitalization of $15.17 billion, a 52-week range of $44.44 to $68.54 and a price-earnings ratio of 20.06.

Amid the top fund holders of the company, Vanguard Group is the leader with 11.07% of shares outstanding. The asset management firm is followed by BlackRock with 7.92% of shares outstanding and Massachusetts Financial Services Co/Ma/ with 7.78% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $69.77 per share.

Disclosures

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