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3 Stocks Growing Free Cash Flow Fast

These companies have strong potential to keep growing through the years

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Alberto Abaterusso
Sep 03, 2021

Summary

  • Agilent Technologies, Generac Holdings and Entegris have seen their free cash flow grow notably in recent years.
  • Their businesses should be flexible enough to continue to support the development of projects and return cash to shareholders.
  • Wall Street has issued positive ratings for these stocks.
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If you are screening the market for investment opportunities among U.S.-listed equities, you may want to consider the stocks listed below, as they have seen their free cash flow grow notably over recent years. As a result, these businesses should be flexible enough to continue to support the development of projects and return cash to shareholders.

Furthermore, Wall Street sell-side analysts have recommended positive ratings for these stocks, meaning that their share prices are expected to improve in the months ahead.

Agilent Technologies

The first company that investors may want to consider is Agilent Technologies (

A, Financial). Based in Santa Clara, California, the company provides diagnostics and research organizations with application solutions, including liquid and gas chromatography systems, arrays for DNA investigations and various laboratory instruments.

The company has seen its free cash flow per share increase by 1.2% per year over the last 10 years, by 14.90% per year over the last five years and by 74.10% over the last 12 months.

Analysts estimate that the company will keep growing its earnings per share (EPS) by 31.40% this year, by 10.10% in 2022 and by 53.30% per year over the next five years.

On Wall Street, as of September, the stock has seven strong buys, four buys and three hold ratings for an average target price of $170.76 per share, reflecting a 4.1% downside from Thursday's closing price of $178.02 per share.

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The share price has risen by nearly 83% over the past year through Thursday for a market capitalization of $53.89 billion and a 52-week range of $94.76 to $178.34.

Generac Holdings

The second company that investors may want to consider is Generac Holdings (

GNRC, Financial). Based in Waukesha, Wisconsin, the company is a manufacturer of power generation equipment and storage systems for residential as well as light commercial and industrial use worldwide.

The company has seen its free cash flow per share increase by 8.60% per year over the last 10 years, by 18.20% per year over the last five years and by 59.50% over the last 12 months.

Analysts estimate that the company will increase its EPS by 56.40% this year, by 18.50% in 2022 and by 8% per year over the next five years.

On Wall Street, as of September, the stock has three strong buys, one buy and seven hold recommendation ratings for an average target price of $497 per share, which reflects an 8.5% upside from the share price of $458.21 at market close on Thursday.

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The share price has risen by 154.51% over the past year through Thursday for a market capitalization of $28.58 billion and a 52-week range of $169.34 to $458.10.

Entegris

The third company that investors may want to consider is Entegris (

ENTG, Financial). Based in Billerica, Massachusetts, the company is a manufacturer and supplier of semiconductor equipment and materials. In addition to semiconductors, the company serves high-technology industries. The customers are located across North America, Europe, Asia and Southeast Asia, including Taiwan.

The company has seen its free cash flow per share increase by 13.90% per year over the last 10 years, by 39.10% per year over the last five years and by 37.60% over the last 12 months.

Analysts expect the company to grow its EPS by 30.70% this year, by 17.80% in 2022 and by 17.95% per year over the next five years.

On Wall Street, as of September, the stock has two strong buys, four buys and one hold recommendation rating for an average target price of $133, reflecting a nearly 10% upside from Thursday’s closing price of $121.07 per share.

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The share price has risen by 82.78% over the past year through Thursday, determining a market capitalization of $16.36 billion and a 52-week range of $62.51 to $126.41.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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