4 Stocks Growing Earnings Faster Than Sales

These companies have efficient operating activities

Summary
  • Fidelity National Financial Inc., Abiomed Inc., PulteGroup Inc. and Fortune Brands Home & Security Inc. are improving their profit margins.
  • This is an indication that their operating activities are very efficient.
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Investors may want to consider the following stocks, since they are growing earnings faster than sales, which may indicate efficient operating activities as profit margins expand along with growth.

The following companies have five-year revenue per share growth rates of no less than 5% per year and five-year earnings per share (EPS) growth rates of no less than 10% per year.

Fidelity National Financial Inc.

The first stock value investors may want to consider is Fidelity National Financial Inc. (FNF, Financial), a Jacksonville, Florida-based financial services company focusing on providing various insurance products, including life insurance, annuities and home warranty insurance products, for U.S. individuals. Also, the company is a real estate broker as well as a provider of technology and transaction services for the real estate and mortgage industries.

On average, the company saw its trailing 12-month revenue per share increase by 12.60% and its trailing 12-month EPS increase by 27% every year over the last five years.

The stock closed at around $50.31 per share on Friday for a market cap of $14.31 billion and a 52-week range of $35.71 to $52.93.

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Fidelity National Financial Inc. pays quarterly dividends currently. The next payment, $0.44 per share, is scheduled for Dec. 31, generating a forward dividend yield of 3.5% as of Dec. 10.

Wall Street sell-side analysts issued a median recommendation rating of overweight for this stock and have established an average target price of $65.20 per share.

Abiomed Inc.

The second stock investors may want to consider is Abiomed Inc. (ABMD, Financial), a Danvers, Massachusetts-based manufacturer and distributor of medical devices that are used to aid the pumping function of the failing heart.

On average, the company saw its trailing 12-month revenue per share increase by 21.20% and its trailing 12-month EPS increase by 47.60% every year over the last five years.

The stock closed at around $306.03 per share on Friday for a market cap of $13.92 billion and a 52-week range of $254.41 to $387.40.

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Abiomed Inc. does not pay dividends.

Wall Street sell-side analysts issued a median recommendation rating of overweight for this stock and have established an average target price of $387.33 per share.

PulteGroup Inc.

The third stock value investors may want to consider is PulteGroup Inc. (PHM, Financial), an Atlanta-based residential construction company.

On average, the company saw its trailing 12-month revenue per share increase by 19.60% and its trailing 12-month EPS increase by 32.30% every year over the last five years.

The stock closed at around $56.22 per share on Friday for a market capitalization of $14.23 billion and a 52-week range of $39.92 to $63.90.

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Currently, PulteGroup Inc pays a quarterly dividend and the next payment, $0.15 per share, is scheduled for Jan. 4, 2022, leading to a forward dividend yield of 1.07% as of Dec. 10.

Wall Street sell-side analysts issued a median recommendation rating of overweight for this stock and have established an average target price of $65.50 per share.

Fortune Brands Home & Security Inc.

The fourth stock value investors may want to consider is Fortune Brands Home & Security Inc. (FBHS, Financial), a Deerfield, Illinois-based provider of products for residential home repair, remodeling and new construction.

On average, the company saw its trailing 12-month revenue per share increase by 9.10% and its trailing 12-month EPS increase by 12.20% every year over the last five years.

The stock closed at around $105.68 per share on Friday for a market capitalization of $14.34 billion and a 52-week range of $80.40 to $114.01.

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Currently, Fortune Brands Home & Security Inc. pays a quarterly dividend of $0.26 per common share with the next payment scheduled for Dec. 15, leading to a forward dividend yield of 0.98% as of Dec. 10.

Wall Street sell-side analysts issued a median recommendation rating of overweight for this stock and have established an average target price of $119 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