The three companies listed below have been upgrading their operating activities in recent years, as shown by a substantial increase in the allocation of funds to the purchase of fixed assets such as property, plant and equipment. This could mean that the managers of these companies expect a higher demand for the goods and services that they produce, which would ideally correspond to higher revenues.
Wall Street sell-side analysts are also optimistic about these stocks, as they have recommended positive ratings for each of them.
REGENXBIO Inc
The first company that makes the cut is REGENXBIO Inc. (RGNX, Financial) a Rockville, Maryland-based clinical-stage biotechnology company that develops gene therapies for the treatment of wet age-related macular degeneration and other rare diseases. This group includes mucopolysaccharidosis type I, late-infantile neuronal ceroid lipofuscinosis type II disease and homozygous familial hypercholesterolemia.
REGENXBIO Inc's allocations to the purchase of fixed assets increased by nearly 48% on average every year over the past five years to $26.87 million in full-year 2020.
Morningstar analysts estimate that on average, total revenues will grow by about 37.5% every year over the next four fiscal years to reach $354 million in 2024.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $62 per share.
The stock traded at $37.79 per share at close on Friday for a market capitalization of $1.62 billion. The share price has increased by 5.6% over the past year, determining a price-book ratio of 3.50 versus the industry median of 3.66.
Flex LNG Ltd
The second company that makes the cut is Flex LNG Ltd (FLNG, Financial), a Bermuda-based distributor of liquefied natural gas (LNG) worldwide.
Flex LNG Ltd’s allocations to the purchase of fixed assets increased by more than 18-fold on average every year over the past five years to $691.39 million in full-year 2020.
Morningstar analysts estimate that over the next four fiscal years, total revenues will grow by about 35% per annum to reach $353.98 million in 2024.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $19.97 per share.
The stock price traded at $21.57 at close on Friday for a market capitalization of $1.11 billion following a 209.5% increase over that past year. The price-book ratio is 1.35, which is in line with the industry median.
CrossAmerica Partners LP
The third company that makes the cut is CrossAmerica Partners LP (CAPL, Financial), an Allentown, Pennsylvania-based wholesale distributor of motor fuels.
Over the past five years, CrossAmerica Partners LP increased its allocations to the purchase of fixed assets by more than 25% on average every year to $37 million in full-year 2020.
Morningstar analysts estimate that over the next two fiscal years, total revenues will grow by about 28.5% per annum to reach nearly $3 billion in 2022.
On Wall Street, as of November, the stock holds three strong buys, one buy and three hold recommendation ratings for an average target price of $18 per share.
The stock was trading at $20.21 per share at close on Friday for a market capitalization of $765.79 million thanks to a 22.8% increase that took place over the past 12 months. The price-book ratio is 10.61 versus the industry median of 1.35.
