3 Stocks Beating the S&P 500

These stocks could continue to perform well, according to analysts

Summary
  • Raymond James Financial Inc, Caesars Entertainment Inc and MGM Resorts International have outperformed the S&P 500 recently.
  • Wall Street seems positive about these names even after recent gains.
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Shareholders of Raymond James Financial Inc (RJF, Financial), Caesars Entertainment Inc (CZR, Financial) and MGM Resorts International (MGM, Financial) saw the value of their shares increase significantly in recent years, outperforming the S&P 500 Index. The benchmark index for the U.S. market stands at 4,690.70 as of Nov. 23, having grown 31% over the past year and 78% over the past three years through Nov. 23.

Wall Street sell-side analysts have also issued positive recommendation ratings for these stocks, which indicates that their shares prices are expected to continue to improve over the months ahead.

Raymond James Financial Inc

Raymond James Financial Inc (RJF, Financial) is a Saint Petersburg, Florida-based financial services company.

Shares have risen 62% over the past year and 91% over the past three years through Nov. 23.

The stock has paid dividends over the years observed, and currently distributes a quarterly cash dividend of $0.26 per common share for a trailing 12-month and forward dividend yield of 1.03% as of Nov. 23.

In terms of financial strength, GuruFocus has assigned a score of 4 out of 10 to the company. The financial indicator that scores the best is the debt-to-Ebitda ratio of 0.3 (versus the industry median of 1.55).

In terms of profitability, GuruFocus has assigned the company a score of 6 out of 10. The best indicators are the return on equity (ROE) ratio of 19% and the three-year revenue per share growth rate of 9.4%, which beat the industry medians of 8.29% and 3.25%, respectively.

The stock was trading at around $100.71 per share at close on Nov. 23 for a market capitalization of $20.72 billion.

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The stock has a price-earnings ratio of 15.18, a price-book ratio of 2.63 and a price-sales ratio of 2.21.

On Wall Street, the stock has a median recommendation rating of overweight and an average price target of $118.63 per share.

Caesars Entertainment Inc

Caesars Entertainment Inc (CZR, Financial) is a Reno, Nevada-based operator of casinos and resorts in the U.S.

Shares have risen 35% over the past year and 139% over the past three years through Nov. 23.

The company does not pay dividends.

Regarding the financial strength of the company, GuruFocus has assigned a score of 3 out of 10. The Piotroski F-Score of 5 out of 9 is the best financial indicator, suggesting that the financial situation of the company is stable.

In terms of profitability, GuruFocus has assigned a score of 6 out of 10 to the company. The best indicators are the operating margin ratio of 16.78% and the three-year revenue per share growth rate of 7.1%, which beat the industry medians of -6.17% and -14.95%, respectively.

The stock closed at $93.94 per share on Nov. 23 for a market capitalization of $20.08 billion.

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The stock has a price-book ratio of 4.11 and a price-sales ratio of 2.39.

On Wall Street, the stock has a median recommendation rating of buy and an average price target of approximately $138.38 per share.

MGM Resorts International

MGM Resorts International (MGM, Financial) is a Las Vegas-based owner and operator of casinos and resorts in the U.S. and Macau.

Shares have increased 50% over the past year and 57% over the past three years through Nov. 23.

The company has paid quarterly dividends during the period in question. The next payment, $0.003 per common share, will be made on Dec. 15. The amount is down 97.7% compared to December 2019 due to the Covid-19 crisis. The stock offers a trailing 12-month and forward dividend yield of 0.02% as of Nov. 23.

In terms of financial strength, GuruFocus has assigned a score of 3 out of 10 to the company's balance sheet. The best indicator is a Piotroski F-Score of 4 out of 9, which indicates that the current financial situation is typical for a stable company. However, an Altman Z-Score of 0.96 points to financial distress zones.

In terms of profitability, GuruFocus has assigned a score of 5 out of 10 to the company. The financial ratio that scores the best is the net margin ratio of 8.33% (versus the industry median of -9.46%).

The stock was trading at $42.51 per share at close on Nov. 23 for a market capitalization of $19.94 billion.

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The stock has a price-earnings ratio of 32.70, a price-book ratio of 2.92 and a price-sales ratio of 2.57.

On Wall Street, the stock has a median recommendation rating of overweight and an average price target of $54.83 per share.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure