3 Companies Growing Earnings Fast

Their five-year earnings growth rates are much higher than that of the S&P 500

Summary
  • The S&P 500 saw its trailing 12-month real earnings per share increase by about 10% on average annually over the past five years.
  • FirstService, Hamilton Lane and Ultra Clean Holdings have beaten the S&P 500 in terms of higher earnings per share growth rates.
  • Wall Street is positive about these businesses.
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The S&P 500 saw the trailing 12-month real earnings per share of its member companies increase by a compound annual growth rate of 10.13% over the past five years. The index, which stood at 4,796.56 as of Monday, has climbed more than 110% over the past five years.

Thus, investors may want to consider FirstService Corp. (FSV, Financial), Hamilton Lane Inc. (HLNE, Financial) and Ultra Clean Holdings Inc. (UCTT, Financial) since they have outperformed the benchmark index in terms of five-year annual earnings per share growth rates.

FirstService (FSV, Financial)

Based in Toronto, the company provides essential property services to residential and commercial customers in North America.

The company saw its 12-month earnings per share increase by approximately 27% on average annually over the past five years.

Following a nearly 40% upside over the past year, shares closed at $193.28 apiece on Monday for a market capitalization of about $8.35 billion, a 52-week range of $133.03 to $202.78 and a price-earnings ratio of 66.64.

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T. Rowe Price Associates Inc. is the largest institutional shareholder of the stock with 12.44% of shares outstanding. The asset management firm is followed by Durable Capital Partners LP with an 7.85% stake and Manufacturers Life Insurance Co. with 5.16%.

On Wall Street, the stock has a median recommendation rating of hold with an average target price of $198.83 per share.

Hamilton Lane (HLNE, Financial)

Based in Conshohocken, Pennsylvania, the investment firm specializes in direct and fund of fund investments in private equities in North America and internationally.

The company saw its 12-month earnings per share increase by approximately 25% on average every year over the past five years.

The stock market was very enthusiastic about the earnings improvement as the share price ($102.67 at close on Monday) gained more than 430% over the past five years, determining a market capitalization of $3.87 billion. The 52-week range is $74.11 to $116.

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Wellington Management Group LLP, Blackrock Inc. and Wasatch Advisors Inc. are amid the largest guru shareholders of the company with 9.72%, 8.31% and 8.20% of its shares outstanding.

On Wall Street, the stock has a median recommendation rating of hold with an average target price of $115.17 per share.

Ultra Clean Holdings (UCTT, Financial)

Based in Hayward, California, the company designs and manufactures production tools, modules and subsystems for the semiconductor industry in the United States and internationally.

The company saw its 12-month earnings per share increase by an average of 23% annually over the past five years.

The market must have been very happy with the earnings growth, as the share price climbed more than 450% over the past five years to close at $58.47 on Monday for a market capitalization of $2.60 billion. The 52-week range is $33.85 to $65.33 and the price-earnings ratio is 25.91.

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Blackrock and the Vanguard Group are among the largest shareholders of the company with 18.68% and 8.55% of shares outstanding.

On Wall Street, the stock has a median recommendation rating of buy with an average target price of approximately $72.58 per share.

Disclosures

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