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.
Warner Music Group Corp
The first company that makes the cut is Warner Music Group Corp. (WMG, Financial), a New York-based music entertainment company with operations in the United States, the United Kingdom and internationally.
Warner Music Group's purchase of property, plant and equipment has grown at an average of approximately 114% per year over the past five fiscal years, from $60 million for the full fiscal year 2017 to $574 million for the full fiscal year 2021 (the company's fiscal year ends Sept. 30).
Morningstar analysts estimate total revenue will grow at an average rate of about 10.80% per year over the next three fiscal years to reach $7.25 billion by fiscal 2024.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $46.67 per share.
The stock traded at $40.33 per share at close on Friday for a market capitalization of $20.75 billion. The share price is up 7.5% over the past year, yielding a price-book ratio of 672.17 versus the industry median of 1.9.
Celsius Holdings Inc.
The second company that makes the cut is Celsius Holdings Inc. (CELH, Financial), a Boca Raton, Florida-based developer and distributor of fitness drinks.
Celsius Holdings Inc.'s purchase of property, plant and equipment has grown at an average annual rate of approximately 193% over the past five years, from $30,000 for full-year 2016 to $570,000 for full-year 2020.
Morningstar analysts estimate total revenue will grow at an average rate of about 51.63% per year over the next three fiscal years to reach $1.11 billion by fiscal 2024.
On Wall Street, the stock has a median recommendation rating of overweight with an average price target of $110.21 per share.
The stock price traded at $68 at close on Friday for a market capitalization of $5.09 billion following a 65% increase over that past year. The price-book ratio is 25.75 versus the industry median of 2.24.
Axon Enterprise, Inc.
The third company that makes the cut is Axon Enterprise, Inc. (AXON, Financial), a Scottsdale, Arizona-based developer of energy weapons under the TASER brand in the United States and internationally.
Axon Enterprise's purchase of property, plant and equipment has grown at an average annual rate of approximately 129% over the past five years, from $4.96 million for full-year 2016 to $72.63 million for full-year 2020.
Morningstar analysts estimate that over the next two fiscal years, total revenues will grow by about 19% per annum to reach approximately $1.01 billion in 2022.
On Wall Street, the stock has a median recommendation rating of buy with an average price target of $222.40 per share.
The stock was trading at $144.93 per share at close on Friday for a market capitalization of $9.92 billion thanks to a 13.34% increase that occurred over the past one year. The price-book ratio is 8.79 versus the industry median of 2.25.
