Get Premium to unlock powerful stock data

4 Stock Picks for a Long-Term Approach

These companies have been steadily growing revenue and Ebitda

Author's Avatar
Dec 06, 2021
Summary
  • Nvidia Corp, Fox Factory Holding Corp, SVB Financial Group and Generac Holdings have highly predictable businesses
  • They have grown revenue and Ebitda steadily over the past years, resulting in strong share price performances
Article's Main Image

The GuruFocus business predictability rating ranks companies on a five-star scale, defining the more predictable companies as businesses whose revenue per share and Ebitda per share have been growing steadily and who have produced a strong long-term performance of their stock prices.

Thus, those following a long-term investment strategy could find attractive investing opportunities by screening the market for stocks that have a high GuruFocus business predictability rating, in my opinion. The following three stocks all trade with high business predictability ratings and are recommended by Wall Street.

NVIDIA Corp

The first company that matches the criteria is Nvidia Corp (

NVDA, Financial), a Santa Clara, California-based producer of graphics processing units and system on chip units for the consumer electronics, computer hardware, semiconductors and video game industries.

Nvidia Corp's business has a three-star rating for its predictability. The company saw its revenue per share increase by 16% and its Ebitda per share increase by 26.50% on average every year over the past 10 years.

The share price ($306.93 at close on Friday) has increased like crazy over the past several years, as shown by the chart below, determining a market capitalization of $767.33 billion.

1467865095966257152.png

GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10 to the company.

The price-earnings ratio is 94.56 versus the industry median of 24.6, the enterprise-value-to-Ebitda ratio is 76.54 versus the industry median of 14.95 and the price-sales ratio is 32.04 versus the industry median of 2.89.

Wall Street sell-side analysts recommend a median rating of overweight for the stock with an average target price of $338.08 per share.

Fox Factory Holding Corp

The second company that meets the criteria is Fox Factory Holding Corp (

FOXF, Financial), a Braselton, Georgia-based designer, manufacturer and marketer of ride dynamics products for recreational vehicles worldwide.

Fox Factory Holding Corp's business has a four-star business predictability rank. The company saw its revenue per share increase by 15.30% and its Ebitda per share increase by 16.9% on average every year over the past 10 years.

The share price ($175.97 at close on Friday) has performed strongly over the past 10 years, rising to a market capitalization of $7.47 billion.

1467865099078430720.png

GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10 to the company.

The price-earnings ratio is 47.59 versus the industry median of 16.7, the enterprise-value-to-Ebitda ratio is 32.55 versus the industry median of 9.39 and the price-sales ratio is 6.16 versus the industry median of 0.85.

Wall Street sell-side analysts recommend a median rating of overweight for this stock and have established an average target price of about $190.14 per share.

SVB Financial Group

The third company that meets the criteria is SVB Financial Group (

SIVB, Financial), a Santa Clara, California-based provider of diversified financial services including various banking and financial products and services.

SVB Financial Group's business has a four-and-a-half-star business predictability rank. The company saw its revenue per share increase by 14.90% and its book value per share increase by 16.60% on average every year over the past 10 years. Regarding this company, since it is a financial stock, the 10-year average growth rate for the book value per share is used to determine the predictability rank of the business, in the place of the Ebitda growth rate.

The current share price ($674.57 at close on Friday) has increased exponentially over the past 10 years to a market capitalization of $39.59 billion.

1467865101460795392.png

GuruFocus assigned a financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10 to the company.

The price-earnings ratio is 20.59 versus the industry median of 10.57, the price-book ratio is 3.23 versus the industry median of 1.01 and the price-sales ratio is 6.72 versus the industry median of 2.83.

Wall Street sell-side analysts recommend a median rating of overweight for the stock with an average target price of $829.76 per share.

Generac Holdings

The fourth company that meets the criteria 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.

Generac Holdings' business has a four-star business predictability rank. The company saw its revenue per share increase by 13.20% and its Ebitda per share increase by 11% on average every year over the past 10 years.

The current share price ($385.56 at close on Friday) has increased dramatically over the past 10 years to a market capitalization of $24.32 billion.

1467865104023515136.png

GuruFocus assigned a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10 to the company.

The price-earnings ratio is 46.79 versus the industry median of 23.61, the enterprise-value-to-Ebitda ratio is 31.25 versus the industry median of 14.24 and the price-sales ratio is 7.21 versus the industry median of 1.63.

Wall Street sell-side analysts recommend a median rating of overweight for the stock with an average target price of $528.24 per share.

Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
Rating:
0 / 5 (0 votes)
Author's Avatar
WRITTEN BY

GuruFocus Screeners

Related Articles

Q&A with Gurus